Bonus Plans
pmaher
22 Posts
Does anyone have a good plan on giving bonuses? We are trying to cut costs but seem to have a free hand at giving bonuses. I'd like to recommend a plan to our management so that we have some control.
Thank you.
Thank you.
Comments
Different maximum amounts based on what level of management you are ( i.e
20%, 35%, etc)
Based on sales / profit growth
Example: 35% Maximum
Sales/Profit Growth Bonus Payout
7% 7%
14% 14%
21% 21%
28% 28%
35% 35%
we use gross profit
payout is the lesser of the two - sales growth or profit growth (i.e. if
sales growth was 14% but the profit growth was only 7% we'd pay at the 7% level
Hope this helps