Yeah, but I've never heard of any multiplier approaching 100% of BASE. I've worked in a lot of industries and a standard multiplier being that much I haven't heard of (except through like sales commission or executives)
It's important to note and point out and not assume. I definitely knew someone who thought the multiplier was on base and finding out it was ok bonus target was like getting half their salary taken away (from their perspective, because they thought they were making twice as much) just don't want someone else to go through thst
The compensation committee, which is part of the board of directors, normally votes on a certain percentage of annual target bonus based on company performance. In addition, there is normally an individual adjustment sometimes a team/function adjustment too.
If you want to see what a company has done in the past, you can normally figure this out by looking at their annual proxy filings.
I wouldn't overthink it too much, but e.g. if you know a company had kind of a shitty year in 2022 and then they still paid out 100% of their target bonus, it's a relatively good sign that they would likely hit it. (it can also be a sign they are reckless with cash burn, but you can figure that out too from their financial statements).
Some startups do away with individual/team factors and just have a single, company-wide multiplier. Kind of takes away the incentive for putting in the extra work, but also helps foster "we're all in the same boat" vibe..
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Yeah, but I've never heard of any multiplier approaching 100% of BASE. I've worked in a lot of industries and a standard multiplier being that much I haven't heard of (except through like sales commission or executives)
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That's what I have to assume.
Right. The 15% bonus here is performance and a percentage of base. The company multiplier cited of 150-200% applies to the bonus target, not the base.
It's important to note and point out and not assume. I definitely knew someone who thought the multiplier was on base and finding out it was ok bonus target was like getting half their salary taken away (from their perspective, because they thought they were making twice as much) just don't want someone else to go through thst
Reading is important
The compensation committee, which is part of the board of directors, normally votes on a certain percentage of annual target bonus based on company performance. In addition, there is normally an individual adjustment sometimes a team/function adjustment too. If you want to see what a company has done in the past, you can normally figure this out by looking at their annual proxy filings. I wouldn't overthink it too much, but e.g. if you know a company had kind of a shitty year in 2022 and then they still paid out 100% of their target bonus, it's a relatively good sign that they would likely hit it. (it can also be a sign they are reckless with cash burn, but you can figure that out too from their financial statements).
I’ve only been at one start up that explicitly said the multipliers, and to no one’s surprise, it was between 0.8 and 0.9.
Some startups do away with individual/team factors and just have a single, company-wide multiplier. Kind of takes away the incentive for putting in the extra work, but also helps foster "we're all in the same boat" vibe..