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Bonus Draft

Employees will receive annual bonus pay based on company performance, with the amount not exceeding a specified percentage of their fixed wage. Year-end bonuses are contingent on exceeding financial goals and board approval, with a tiered payout system based on employment duration and performance reviews. Additionally, incentive plans may be established to reward achieving company-wide and individual/team targets, with specific goals set by Department Heads.

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4 views

Bonus Draft

Employees will receive annual bonus pay based on company performance, with the amount not exceeding a specified percentage of their fixed wage. Year-end bonuses are contingent on exceeding financial goals and board approval, with a tiered payout system based on employment duration and performance reviews. Additionally, incentive plans may be established to reward achieving company-wide and individual/team targets, with specific goals set by Department Heads.

Uploaded by

f.fayez
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Bonus:

Employees will be offered bonus pay based on the company performance The bonus provided will be
one time annually and will not be more than “(percent)” % of the total annual fixed-wage of the
employee.

Purpose

to motivate and retain valued employees who provide exemplary performance or meet specified targets.
These programs are intended to reward staff employees whose achievements have resulted in a
particular benefit to [Company Name].

Year-end bonus

Our company’s policy gives the executive team the ability to decide on year-end bonuses for all
employees. There are two conditions for this bonus:

 Our company should have exceeded its annual financial goals.

 The board of directors must approve the bonuses.

If these two conditions are satisfied, then our company will give bonuses to employees who:

 Are employed by our company on the day when the bonus must be paid.

 Have not announced they intend to resign either verbally or in writing.

 Have received at least satisfactory performance reviews.

We will pay out bonuses according to this tiered system:

 Employees who were employed by our company for the entire year will receive a year-end
bonus payment of [10%] of their annual salary.

 Employees who are employed for at least [six] months will receive a prorated amount.

 Employees who are employed for fewer than [six months] will receive a [2.5%] bonus.

Bonus incentive plans

Our company may set up incentive plans at the beginning of each year. These plans may involve:

 Incentive bonuses to encourage employees to achieve annual company financial goals. These
are company-wide bonuses that may be announced at the beginning of the year by senior
leaders. [These bonuses may be calculated with a tiered system (e.g. 5% for hitting 80% of the
goal, 10% for hitting the goal and 20% for exceeding the goal.)] HR should give a formal payout
plan to each employee.

 Incentive bonuses for achieving or exceeding individual and team targets. Department Heads
are responsible for formulating these plans and setting specific goals. For example, they may
decide to pay a quarterly bonus (a percentage of individual sales) to sales teams that exceed
their sales or revenue targets. Department Heads should submit their plan to HR and the CEO for
approval [within the first quarter of the year.]

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