General Inquiries

  • 1.  Bonus Calculation

    Posted 07-23-2019 17:48
    We would like to create a few key goals and meaningful bonus calculation for an operations manager who has the ability to positively impact the bottom line by business decisions he makes.  I have sort of created a performance range to measure these key goals, like 80% of the bonus, 100% of it, and 120% of it, and then the corresponding bonus amounts for each of these 3 scenarios.  But then I thought it might be better to sort of graph out and pay what the exact bonus amount might be in any part along this range from the 80% to the 120% amount instead.  Do you have any mechanism for calculating such a bonus ?  Recommendations from your experience?  Thank you.

    Nathan Hathcock CPA, MBA
    Berghoff Design Group
    Scottsdale AZ
    (602) 577-3861