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I am curious how this information regarding a bonus from a job posting reads to you: "Target bonus will be 50-100% of salary. Bonuses are dependent upon company performance and are paid twice yearly."
Does that mean for each bonus payment period you would be paid 50-100% or would it be 50-100% for the entire year split between two payments? Would the minimum possible bonus level be 50%?
Say there the 50% level is reached on a base salary of $50,000, so the bonus would be $25,000. Would you get paid $25,000 two times a year or $12,500 in one payment and $12,500 in the other payment?
The bonus amount will be whatever the company feels is appropriate, regardless of the statement. There is NO minimum. This is a target. Targets are missed all the time. There is no guarantee of any bonus if the company does not feel they have met their financial targets.
As to how they disburse any payments they decide to make........they said they make them twice a year. You will have to ask them how they determine the calculation. There is no rule as to how they have to do it. Bonuses are a voluntary compensation measure they use to boost moral and keep a lower salary structure while remaining competitive.
The bonus amount will be whatever the company feels is appropriate, regardless of the statement. There is NO minimum. This is a target. Targets are missed all the time. There is no guarantee of any bonus if the company does not feel they have met their financial targets.
As to how they disburse any payments they decide to make........they said they make them twice a year. You will have to ask them how they determine the calculation. There is no rule as to how they have to do it. Bonuses are a voluntary compensation measure they use to boost moral and keep a lower salary structure while remaining competitive.
I am curious how this information regarding a bonus from a job posting reads to you: "Target bonus will be 50-100% of salary. Bonuses are dependent upon company performance and are paid twice yearly."
Does that mean for each bonus payment period you would be paid 50-100% or would it be 50-100% for the entire year split between two payments? Would the minimum possible bonus level be 50%?
Say there the 50% level is reached on a base salary of $50,000, so the bonus would be $25,000. Would you get paid $25,000 two times a year or $12,500 in one payment and $12,500 in the other payment?
I had the same deal a few years back and and what it meant in my case was that the bonus amount for the year would be XX% - XX% of my salary, and the total would be split between two payout periods.
That's what it meant for me, but it could be different where you work.
The bonus amount will be whatever the company feels is appropriate, regardless of the statement. There is NO minimum. This is a target. Targets are missed all the time. There is no guarantee of any bonus if the company does not feel they have met their financial targets.
As to how they disburse any payments they decide to make........they said they make them twice a year. You will have to ask them how they determine the calculation. There is no rule as to how they have to do it. Bonuses are a voluntary compensation measure they use to boost moral and keep a lower salary structure while remaining competitive.
Good post, and I'd like to add, it is wise to budget your cost of living on your base salary. Because there are going to be lean times and you don't want to get in trouble because you are over extended.
The bonus amount will be whatever the company feels is appropriate, regardless of the statement. There is NO minimum. This is a target. Targets are missed all the time. There is no guarantee of any bonus if the company does not feel they have met their financial targets.
As to how they disburse any payments they decide to make........they said they make them twice a year. You will have to ask them how they determine the calculation. There is no rule as to how they have to do it. Bonuses are a voluntary compensation measure they use to boost moral and keep a lower salary structure while remaining competitive.
your annual bonus will be 50-100% and will be in 2 payments (in your example, $25k paid twice so $12.5k each time).
But the annual bonus target is 50-100% and that doesn't mean that 50% is any kind of minimum. Since they said that, they probably have some data showing what the bonus was for the past few years and it was likely in that range.
I have a similar setup at my work although my bonus is not tied to company performance and my bonus is not that high. my bonus is only tied to individual performance and is set up to promote retention (so that i don't leave). as long as i do an acceptable job, i get my target bonus.
My base is enough that I live off my base and put my bonus away into retirement savings but there are many folks at work that actually do count on that bonus as part of their annual pay.
In your case, since the bonus is tied to company performance, it is dangerous to budget your annual spending as if you're going to make $75k or $100k. I had a job once where it was like you and in previous years, the bonus was 20%. Well, we had one bad year and the bonus ended up at around 10%. Everyone complained and the company changed their structure to give everyone a 5% raise (sure thing) and in exchange they set expectations low on annual bonuses (0-10%).
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