General Inquiries

target bonus to budget income

  • 1.  target bonus to budget income

    Posted 02-18-2020 10:15
    Hi,

    would anyone have any insight or past metrics used  of target bonus to net income. looking for an indicator of how much a company pays from its net income in bonuses to employees.

    IE - 

    What is a typical ratio or target bonus pool to budget net operating income income? 1 to 6? 1 to 5?

     Thank you



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    Michael Donovan CCIFP, BSBA, MBA
    Executive VP/ CFO
    cox engineering company
    Randolph, Ma.
    (781) 302-3316
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  • 2.  RE: target bonus to budget income

    Posted 02-18-2020 11:24
    Michael,
    In my experience, bonuses have run about 15% of net income.  It may be a higher percentage in a lower income year because of expectation of the ownership and employees of providing at least a minimum level of Christmas bonus.

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    John Cochran CCIFP
    Director of Accounting - Construction Group
    Ergon, Inc.
    Flowood MS
    (601) 933-3278
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  • 3.  RE: target bonus to budget income

    Posted 02-25-2020 14:09
    I was at an event in October and the consultants presented 16-17% pre-tax income to bonus incentives as the industry average.


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    Sara Jones CCIFP,CMA,CSCA
    Vice President of Risk Management and Strategy
    Oswald Company, Inc.
    Cincinnati OH
    (513) 793-8080
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