Getting a bonus this year?
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Getting a bonus this year?
So after our Mega Corp slashed who knows how many jobs over the last 18 months, one can imagine how great our financials look.
As a result, the bonus payouts this year were up quite a bit. I'm getting about 130% of my target payout, roughly 10k.
How are the rest of you making out?
As a result, the bonus payouts this year were up quite a bit. I'm getting about 130% of my target payout, roughly 10k.
How are the rest of you making out?
Re: Getting a bonus this year?
We get quarterly payouts at 1/4 x 90% of our target bonus, but we don't get the trued-up final 2015 bonus payout until after we report 2015 earnings in early March. So it's too soon to tell. We've been above 120% the last few years, but they added a customer satisfaction (Net Promoter Score) component to the calculation for 2015, so I don't know how that will play out. Our NPS is improving, but we're nowhere near our stated long-term goal. And since I have zero short-term (or medium-term) impact on customer satisfaction, it's annoying that they added it to everyone's bonus calculation. (The cynic in me says that it's a way to chop our bonuses back closer to 100% of target without either setting unrealistic financial goals or failing to hit realistic ones.)
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Re: Getting a bonus this year?
$0 bonus. I was the top three sales people in my organization for the 3rd year in a row (#2 two years ago, #1 last year, #3 this year) and I didn't even get a pat on the back or an "attaboy".
But, I'm commissioned, so doing pretty well there.
MegaCorp does a lousy job of recognizing success, either financially or even verbally.
But, I'm commissioned, so doing pretty well there.
MegaCorp does a lousy job of recognizing success, either financially or even verbally.
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Re: Getting a bonus this year?
Bonuses aren't customary in my field, but I work for a great company and we've had a good year. I'm expecting a Christmas bonus in the very low 4-figure range (as in, just above 3-figures). My wife is also expecting a similar bonus, she's in tech, so it is expected. We are very grateful, we are setting it aside to purchase furniture for the new home we just bought.
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Re: Getting a bonus this year?
We've averaged 50% of base salary the last few years. (For me, that's between 30 and 40k.) There's no indication that this year won't be just as good, as things have been going really well this year for the company, my group, and my little department. The final figures aren't revealed until annual reviews and raises in February. I may (or may not) have a little countdown in my personal finance Excel spreadsheet for that date. There was talk of 100% bonuses, so I'm crossing my fingers for a "stretch" goal!
One downside is that our 401k match is decided annually, and it's paid out with the bonuses. But whatever, it's free money.
Congrats to all who've earned their bonuses!
One downside is that our 401k match is decided annually, and it's paid out with the bonuses. But whatever, it's free money.
Congrats to all who've earned their bonuses!
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
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Re: Getting a bonus this year?
Good for you! Your 30 year old self (my age) will thank you.Zeralonde wrote:Made a thread about mine a few days ago. I'm getting $10k, which is double what I expected. I plan on polishing off my E-fund and contributing the max to my Roth IRA. I'm just 23, so I still have a strong urge to splurge with it, but I'm trying to be smart with it. I'll take a few hundred to celebrate, but otherwise it's going to retirement and emergency savings.
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
Re: Getting a bonus this year?
Depends on how the next two months play out. I'm a sales guy and I am over plan as of now, plus I have a bunch of deals I am working on. I have the potential to make a great deal of money, but I'm not counting on it until I see the direct deposit hit my account. Either way I have a plan on what I am going to do with it.
1. Pay off high interest debt - A few CCs that I have been snowballing & Student Loans
2. Finish off the Emergency Fund
3. Roth Contribution
4. 529 Contribution
If you fail to plan, you plan to fail.
1. Pay off high interest debt - A few CCs that I have been snowballing & Student Loans
2. Finish off the Emergency Fund
3. Roth Contribution
4. 529 Contribution
If you fail to plan, you plan to fail.
Re: Getting a bonus this year?
Won't know until 1st quarter 2016 what the amount will be, but we are having a good year. Which is especially good since over the years they have made the bonus less based on individual performance and more based on company financial performance. In other words, in the same job title, the guy who worked his butt off will get the same as the guy who did nothing all year.
Re: Getting a bonus this year?
Our holiday bonus is a set amount dependent on tenure and very slightly on title. The max one can get is 2500, mine was $1k. Its of course discretionary, so if the company tanks it will not get paid out. Gone are the days where every employee would get a turkey and a pie along with the bonus
Re: Getting a bonus this year?
I deliver the paper, so any "bonus" come by Christmas tip. Usually comes to around 3K, so hopefully this year will be similar.
- FelixTheCat
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Re: Getting a bonus this year?
None. Zero. Nada. Zippo. Can't remember any other synonyms for now.
Felix is a wonderful, wonderful cat.
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Re: Getting a bonus this year?
What's a bonus? In my field, when we hit our billable hours/realization goals they just up your billable rate since you're more efficient....
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Re: Getting a bonus this year?
Mine has been as high as $30k and as low as $1k. This year I was told my bonus would blow my old record out of the water, but then my biggest client filed Chapter 11... so I'm expecting about $5k. I will be the angriest man who ever received a $5k bonus.
Re: Getting a bonus this year?
No good deed goes unpunished...SouthernCPA wrote:What's a bonus? In my field, when we hit our billable hours/realization goals they just up your billable rate since you're more efficient....
Consistently sets low goals and fails to achieve them.
- Shackleton
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Re: Getting a bonus this year?
I'm at a mega-corp and we have a formula that is based on certain business metrics and then used as a multiplier to a percentage of your salary (the percentage is based on salary grade.) I'm at the 20% base bonus amount, and with the multiplier it looks like I will get about 32% of my salary. I'm pretty happy since we just got the landscaping estimates for our new house and my bonus will almost cover the $40k cost.
“Superhuman effort isn't worth a damn unless it achieves results.” ~Ernest Shackleton
Re: Getting a bonus this year?
Everyone at my company gets a holiday bonus of some sort, although I have no idea how "the man" comes up with the amount. I'm expecting something around 3% of my salary as usual. Straight to the emergency fund it goes.
Re: Getting a bonus this year?
I find this thread interesting...with so many high earning Bogleheads, there's not a single post here with someone getting a big fat bonus.
Our company is having a good year...I'll probably get around 90% of my max bonus (we don't go over 100% no matter how well we do).
Our company is having a good year...I'll probably get around 90% of my max bonus (we don't go over 100% no matter how well we do).
Re: Getting a bonus this year?
I should be getting about 130% of my target, which is 30% of salary. This works out to about 40% of salary. I'm a VP at a fortune 500 company.
http://www.whitecollarwealth.com/
Re: Getting a bonus this year?
I get a bonus in three years - for the rest of my life: + $35K from SS.
- TomatoTomahto
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Re: Getting a bonus this year?
No longer true.mak1277 wrote:I find this thread interesting...with so many high earning Bogleheads, there's not a single post here with someone getting a big fat bonus.
Our company is having a good year...I'll probably get around 90% of my max bonus (we don't go over 100% no matter how well we do).
DW will get a big fat one. She doesn't know precisely how big and fat yet, since they might go above the amount discussed when she was hired. I doubt they would go lower.
I get the FI part but not the RE part of FIRE.
Re: Getting a bonus this year?
Bonus, what's a bonus? Nothing that's ever been part of my compensation in healthcare.
Re: Getting a bonus this year?
I won't know until Feb/March but I would expect approx $1500 which is usual. I'm not a high earner by Boglehead standards. Actually, not by most standards.
The fool, with all his other faults, has this also - he is always getting ready to live. - Seneca Epistles < c. 65AD
Re: Getting a bonus this year?
And me. The word has not gone out yet, but my educated guess is $70k-$90k. Biglaw, so odd stepcousin to megacorp.TomatoTomahto wrote:No longer true.mak1277 wrote:I find this thread interesting...with so many high earning Bogleheads, there's not a single post here with someone getting a big fat bonus.
Our company is having a good year...I'll probably get around 90% of my max bonus (we don't go over 100% no matter how well we do).
DW will get a big fat one. She doesn't know precisely how big and fat yet, since they might go above the amount discussed when she was hired. I doubt they would go lower.
...And just watch, now I've jinxed it.
- Thrifty Femme
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Re: Getting a bonus this year?
I won't find out until February of next year. My bonuses the last two years were in the very low 5 figures. I'm under new management now, so who knows what will happen. If it's in the same range I'll either put some into 401k since I'll be out on FMLA for a while or put it in my new car fund.
- ClevrChico
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Re: Getting a bonus this year?
Mostly likely a fraction of target at the MegaCorp, so 1%. I won't be helping the economy with any flashy purchases.
Re: Getting a bonus this year?
Average about 14-16k a year. Down since 2008 when it was closer to 20k.
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Re: Getting a bonus this year?
I've always worked in small businesses. I thought bonuses were more of a small business thing. I'm (pleasantly) surprised at how many people in "megacorp" get bonuses. Is it all sales-related? Or is there hope for back office people, too?
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
- market timer
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Re: Getting a bonus this year?
.....
Last edited by market timer on Mon Feb 22, 2016 6:53 pm, edited 1 time in total.
Re: Getting a bonus this year?
Negative. Never had a bonus and doubt I ever will in current position.
Out of curiosity, for those that received bonuses, do you do any tax planning around the anticipated amount?
Out of curiosity, for those that received bonuses, do you do any tax planning around the anticipated amount?
- Shackleton
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Re: Getting a bonus this year?
I'm in IT at the megacorp where I work (>25k employees, >3k in IT) and every employee (even in the call center) here gets a bonus based on the rules I outlined above. Entry level employees start at a bonus base of 8% of salary (then the multiplier is applied.) Top level execs get bonus bases of 200% of salary. I should mention that the multiplier can go down to zero, which it has in the past, but the last 8-10 years the multiplier has been above zero.Texanbybirth wrote:I've always worked in small businesses. I thought bonuses were more of a small business thing. I'm (pleasantly) surprised at how many people in "megacorp" get bonuses. Is it all sales-related? Or is there hope for back office people, too?
“Superhuman effort isn't worth a damn unless it achieves results.” ~Ernest Shackleton
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Re: Getting a bonus this year?
10-15% of people in my position in my Fortune 100 company get a bonus. Had a friend of mine who is a manager at another location help me write my personal performance evaluation, so as to include as many corporate buzz words and phrases as possible. As a result, against great odds, I did earn a bonus this year, which comes out to about 1.55% of my salary. I had done the extra work required to get a bonus, but apparently the past couple of years, I had not been describing in such a way that the extra effort was recognized during my manager's evaluation
As an aside, I have since mostly left said company (I work there about once a month now), found a different position with a new organization that pays slightly less but is a much more rewarding job, and I couldn't be happier
As an aside, I have since mostly left said company (I work there about once a month now), found a different position with a new organization that pays slightly less but is a much more rewarding job, and I couldn't be happier
"A quiet and modest life brings more joy than a pursuit of success bound with constant unrest" - Albert Einstein
Re: Getting a bonus this year?
18% this year. For me this was unexpected.
I retired early in July right after the end of the fiscal year. While the bonus period is from July - June, the bonuses themselves are usually calculated in July, and paid in September. I wasn't expecting to receive anything, so it was a pleasant surprise.
I retired early in July right after the end of the fiscal year. While the bonus period is from July - June, the bonuses themselves are usually calculated in July, and paid in September. I wasn't expecting to receive anything, so it was a pleasant surprise.
- TomatoTomahto
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Re: Getting a bonus this year?
Plenty of hope for "back office" types. By one definition, DW is a back office type, and her bonus is a significant part of her comp (to the point where it's questionable whether it should be called a bonus). At the mega banks we've worked at, bonuses for support people (front and back office IT, operations, infrastructure, etc.) can range from $0 (a message that maybe you should find another job) to 5x salary. It is rare to have a bonus change, year on year, outside the range -.5 to 2x, although it has happened, but you need all sorts of HR approval.Texanbybirth wrote:I've always worked in small businesses. I thought bonuses were more of a small business thing. I'm (pleasantly) surprised at how many people in "megacorp" get bonuses. Is it all sales-related? Or is there hope for back office people, too?
I get the FI part but not the RE part of FIRE.
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Re: Getting a bonus this year?
Megacorp bonuses are usually better thought of as "variable compensation." Good financial years for the company = better bonuses. Weaker financial years for the company = lesser bonuses. Bonus % scales much higher as you climb the chain in my publicly traded megacorp. Bonuses are particularly great for the company when there is turnover. The year you leave you obviously get no bonus.Texanbybirth wrote:I've always worked in small businesses. I thought bonuses were more of a small business thing. I'm (pleasantly) surprised at how many people in "megacorp" get bonuses. Is it all sales-related? Or is there hope for back office people, too?
Our multiplier will be low this year as we have had a rough year, but I expect something in the ballpark of half of my 6% bonus. Was up for an internal promotion (and 8% bonus scale ) and now we're on a hiring freeze
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Re: Getting a bonus this year?
Yes, due to its being a large percentage of my overall compensation the federal withholding on my bonus covers my family's tax bill for the year. (We don't have a state income tax.) Thus, since I can't do anything about the automatic 25% w/h on the bonus, I have $0 withheld on my regular paychecks. (I'm currently at 18 exemptions, which seems to do the trick.) We usually still get a small refund, but such is life.Pinotage wrote:Negative. Never had a bonus and doubt I ever will in current position.
Out of curiosity, for those that received bonuses, do you do any tax planning around the anticipated amount?
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
- TomatoTomahto
- Posts: 17100
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Re: Getting a bonus this year?
We make sure to leave a substantial amount in MM rather than invested, in large part for taxes.Pinotage wrote:Negative. Never had a bonus and doubt I ever will in current position.
Out of curiosity, for those that received bonuses, do you do any tax planning around the anticipated amount?
ETA: given the ratio between salary and bonus, regular withholding is insufficient, as is the statutory 25%. I guess we could bump up the bonus withholding.
I get the FI part but not the RE part of FIRE.
Re: Getting a bonus this year?
I've gotten a bonus every year in public accounting, between $3-5k. Peanuts to what others are posting but I'll take it. Raises have been good though, 3x between 12.5% and 25%. Wish it came at year end instead of the summer though.SouthernCPA wrote:What's a bonus? In my field, when we hit our billable hours/realization goals they just up your billable rate since you're more efficient....
Re: Getting a bonus this year?
For the past 5 years, bonuses have averaged right around 30%, and have made up ~18% of my compensation, with equity making up the balance. I expect a similar payout this year, ~35% of base.
In terms of tax planning, I don't really do much. I run estimates on taxcaster towards the end of the year, but don't futz with withholding throughout the year. Generally, the 25% supplemental withholding works for me.
In terms of tax planning, I don't really do much. I run estimates on taxcaster towards the end of the year, but don't futz with withholding throughout the year. Generally, the 25% supplemental withholding works for me.
- Crimsontide
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Re: Getting a bonus this year?
We won't know until late Jan when 4Q15 results and full year 2015 results are announced. Looking pretty good so far, I expect around 20% of full year's earning. I'm in R&D, not sales though...
Re: Getting a bonus this year?
As a public employee, my bonus has been in extra time off that must be used in the current calendar year (regular leave rolls over). Definitely appreciated, especially since it forces me to take a vacation...
Re: Getting a bonus this year?
Very good question. My employer used to allow us to decide in November, how much % to withhold from the bonus,Pinotage wrote:Negative. Never had a bonus and doubt I ever will in current position.
Out of curiosity, for those that received bonuses, do you do any tax planning around the anticipated amount?
for state and federal taxes, essentially relieving you of significant planning actions. You could withhold through the year
on assumption of no bonus, and if the firm is doing well in 4Q, just ramp up the withholding to avoid IRS penalties.
But this year the IRS decided this was not acceptable, and we must decide on % withheld from day 1 in January,
and pay all year long rather than a single large payment in Dec. So now I have to have more withheld through the year,
and less from the bonus, which does force you to predict a bit further in the future.
I have paid penalties and gotten largish refunds, even with the simpler model, going to be worse now.
Re: Getting a bonus this year?
I'm Megacorp too. The work I actually do is more back office stuff. We have this kind of setup as well. The bonus is a nice little extra and can be sizeable depending on your rating and salary. However, I'm part-time so it doesn't end up being material. I usually split it with DH and we use it for our workout pursuits (weights/bikes/etc) but this year I'm thinking it might be more, so I'm not sure what to do with it.JoeJohnson wrote:Texanbybirth wrote:Megacorp bonuses are usually better thought of as "variable compensation." Good financial years for the company = better bonuses. Weaker financial years for the company = lesser bonuses.
Any % payroll deductions are taken out (unless you stop them for that month) and then 25% taxed on the net.
DH is in public service and gets an 'extra paycheck' as well. They do NOT take out any % payroll deductions and furthermore, no federal taxes are withheld. I keep our estimated taxes in a spreadsheet throughout the year, so I can see what it does to our tax liability. But it's not like it is 000s and going to cripple us come April 15.
- Earl Lemongrab
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Re: Getting a bonus this year?
At the Megacorp I work for, the general employees don't get performance-based bonuses. There is a program for a profit-sharing bonus. The company brass examines results and comes up with a figure in terms of days of pay, and all employees get that. So if you have a higher salary, you get more. Generally we've been getting around 7-10 days.
The number isn't determined until January, so I don't yet know what we might get. I used to have a buddy who was in upper management and was involved in the initial recommendation that would be sent to the board, so I would have a bit of a head's-up on the approximate figure. The board would sometimes deviate from the recommendation. This year I will need to wait like everyone else.
A nice feature of this is that you can have the bonus go into the 401k, although as it's elective it takes the place of employee deferrals (not matched). The advantage is that it fills that up faster and I get to after-tax contributions (matched) sooner.
Earl
The number isn't determined until January, so I don't yet know what we might get. I used to have a buddy who was in upper management and was involved in the initial recommendation that would be sent to the board, so I would have a bit of a head's-up on the approximate figure. The board would sometimes deviate from the recommendation. This year I will need to wait like everyone else.
A nice feature of this is that you can have the bonus go into the 401k, although as it's elective it takes the place of employee deferrals (not matched). The advantage is that it fills that up faster and I get to after-tax contributions (matched) sooner.
Earl
Re: Getting a bonus this year?
Hey guys! Modest bonus here as well. I'm curious though since the question is being asked. It seems that most of you are getting cash bonus. My company elected (before I joined), to distribute the bonuses in our 401k accounts. I'm ok with that. It boosts the savings quite a bit but what do you think the real reason is here? Is that to give the employee the impression that they get say 10% when if in cash, that amount would be substantially lower (making them look not as good maybe?). Or do they just care and want people to save up (I know for a fact that they care about employees...).
Thanks!
Thanks!
Re: Getting a bonus this year?
My firm will be making a 401 k match beginning in January so I guess that's a bonus if you last the vesting period 2-6 years.
3-5% I am guessing.
3-5% I am guessing.
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Re: Getting a bonus this year?
I don't really regret any of my spending habits from my 20s, except not saving 15-20% of my paycheck when I could have easily afforded to. My 401k is nowhere near what it could be, but hey we all make mistakes. This is, of course, off topic but I would advise you to pay yourself first (handsomely if you can afford it), and then not fret so much. Honestly, now that I have a wife and baby I don't really want to do most of the things I wanted to do in my 20s. The things that I do still want to do, my wife generally enjoys so we save for them. (It's part of the bonus of finding an awesome spouse.) If you've got goals for the future (wife, kids, house), then start saving for them; but don't beat yourself up over every $1. (Of course, useless debt is your enemy so don't even think about it!)Zeralonde wrote:Thanks! Right now, I'm newly single and in a new city with a job I love. I'm trying to balance retirement savings with the urge to just do whatever I want, because I know when I do get married and have kids that a lot of the opportunities I have to do things will no longer be there. It makes me happy watching my E-fund and my retirement savings grow, but it's hard trying to balance that with spending and enjoying the last of my non-family years.Texanbybirth wrote:Good for you! Your 30 year old self (my age) will thank you.Zeralonde wrote:Made a thread about mine a few days ago. I'm getting $10k, which is double what I expected. I plan on polishing off my E-fund and contributing the max to my Roth IRA. I'm just 23, so I still have a strong urge to splurge with it, but I'm trying to be smart with it. I'll take a few hundred to celebrate, but otherwise it's going to retirement and emergency savings.
A lot harder than I thought it would be.
Now, even though I don't "need" to, I do the best I can to make an extra ~$300/month on the side. That way, I can use that money for "play money" without having to affect the amount I have budgeted for normal savings.
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton