Bonus payment

A bonus payment is usually made to employees in addition to their base salary as part of their wages or salary. While the base salary usually is a fixed amount per month, bonus payments more often than not vary depending on known criteria, such as the annual turnover, or the net number of additional customers acquired, or the current value of the stock of a public company. Thus bonus payments can act as incentives for managers attracting their attention and their personal interest towards what is seen as gainful for their companies' economic success.

There are widely‐used elements of pay for performance and working well in many instances, including when a fair share of an employees participation in the success of a company is desired. There are, however, problematic instances, most notably when bonus payments are high. When they are tied to possibly short-lived figures such as an increase in monthly turnover, or cash flow generated from an isolated marketing action, such figures often do not reflect a solid reliable win for a company, and they certainly do not reflect a manager's lasting efforts to the company's best. Australian retail entrepreneur Gerry Harvey, while supporting bonuses for long term company performance has said

that too many bonuses are focused on the short term. "[To say] 'just because you had a good year this year I'll give you a $5 million, $10 million bonus', I think that's stupid,"[1]

Bonuses are prone to being adjusted or even manipulated to the benefit of those employees who are responsible for reporting them, while they are already planning their leave with a golden handshake. Setting up good employment contracts may be a means to avoid that – at least to some extent – but this is rare in reality.

Bonus payments in the UK infographic, 2013
Bonus payments in the UK in 2013.

Effectiveness questioned

In 2016 the management of Woodford Investment Management ended discretionary bonuses. The decision was made because they concluded that the bonuses were “largely ineffective in influencing the right behaviors,” and that “there is little correlation between bonus and performance and this is backed by widespread academic evidence”.[2]

Also in 2016, the Australian Council of Superannuation Investors "conducted a study of executive pay and concluded bonuses may have become fixed pay, dressed up." They found that despite decreased Australian company earnings in 2015, "93 bosses of the top 100 companies got a bonus, with the median being $1.2 million, the highest since 2007, just before the GFC."[1]

Malus

The inverse of a bonus payment, that is when base salaries shrink on poor performance, this is called a malus.

References

  1. ^ a b Robertson, Andrew (14 September 2016). "Executive bonuses: British fund manager Woodford axes 'largely ineffective' payouts". ABC News online. Australian Broadcasting Corporation. Retrieved 14 September 2016. Executive are not outsiders. They tend to be insiders. They tend to be well socially networked with those who also hold company boards, company board directorships
  2. ^ Jones, Sarah (August 22, 2016). "Investment Firm Scraps Bonuses for Single Salary". Bloomberg. Bloomberg L.P. Retrieved 14 September 2016.
2010 Pro Bowl

The 2010 Pro Bowl was the National Football League's all-star game for the 2009 season. It took place at 8:00 PM EST on Sunday, January 31, 2010, at Sun Life Stadium in Miami Gardens, Florida, the home stadium of the Miami Dolphins and host site of Super Bowl XLIV. The television broadcasters were Mike Tirico, Ron Jaworski and Jon Gruden.

The AFC won the game 41–34.

2014 BWF Super Series

The 2014 BWF Super Series is the eighth season of the BWF Super Series. For this season, an annual US$400,000 of player incentive scheme bonus payment share among the year-end top 10 players/pairs once they fulfil various media and sponsorship commitments.

Ark Elvin Academy

Ark Elvin Academy (formerly Copland Community School) is a mixed secondary school and sixth form located in Wembley area of the London Borough of Brent. 92% of students are of minority ethnic origin, 36% qualify for free school meals, and over 50 different languages are spoken by students. Teachers and students alike speak many languages including Tamil (Thamizh), Arabic, Albanian, French, German, Gujarati, Hindi, Italian, Punjabi, Russian, Shona, Somali, Spanish and Urdu.

Baby bonus

A baby bonus is a government payment to parents of a newborn baby or adopted child to assist with the costs of childrearing.

Education Maintenance Allowance

Education Maintenance Allowance (EMA) (Welsh: Lwfans Cynhaliaeth Addysg; LCA) is a financial scheme applicable to students and those undertaking unpaid work-based learning in the United Kingdom (except England) and aged between sixteen and nineteen whose parents had a certain level of taxable income. It is no longer paid in England. It applies to those doing, or applying to do, at least 12 hours of guided learning on further education courses in school sixth forms, sixth form colleges and Further Education colleges. This includes a wide range of courses up to and including level 3, such as A-levels, GCSEs, BTECs GNVQs, NVQs and other vocational qualifications. Those partaking in an Entry to Employment (E2E course, formerly known as Work based Learning) must do at least 16 hours a week of guided study. Any missed lessons except for extenuating circumstances voids payment for that week. In 2010 the weekly payment for the England scheme were:

£30 per week for those whose household income is under £20,817 p.a.;

£20 per week for those whose household income is between £20,818 and £25,521 p.a.;

£10 per week for those whose household income is between £25,522 and £30,810 p.a.In Scotland a flat rate of £30/week per student is payable where assessed income is £20,351 or less (or £22,403 where there is more than one child in the household).

Employment

Employment is a relationship between two parties, usually based on a contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or other entity is the employer and the other is the employee. Employees work in return for payment, which may be in the form of an hourly wage, by piecework or an annual salary, depending on the type of work an employee does or which sector they are working in. Employees in some fields or sectors may receive gratuities, bonus payment or stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits can include health insurance, housing, disability insurance or use of a gym. Employment is typically governed by employment laws, regulations or legal contracts.

Erin Brockovich (film)

Erin Brockovich is a 2000 American biographical film directed by Steven Soderbergh and written by Susannah Grant. The film is a dramatization of the true story of Erin Brockovich, portrayed by Julia Roberts, who fought against the energy corporation Pacific Gas and Electric Company (PG&E). The film was a box office success, and critical reaction was positive.

Roberts won the Academy Award, BAFTA, Golden Globe Award, Screen Actors Guild Award, and various critics awards for Best Actress. The film itself was also nominated for Best Picture and Best Director for Steven Soderbergh at the 73rd Academy Awards. He did win that year, but rather for directing the film Traffic. Early in the film, the real Erin Brockovich has a cameo appearance as a waitress named Julia.

Healthcare shortage area

Healthcare shortage areas are two types of designation within the United States determined by the Health Resources and Services Administration (HRSA). Health professional shortage areas (HPSAs) designate geographic areas or subgroups of the populations or specific facilities within them as lacking professionals in primary care, mental health, or dental care. Medically Underserved Areas and Populations (MUAs and MUPs) only designate geographic areas or populations, and only for their lack of access to primary care services. Geographic areas can designate single or multiple counties, parts of cities, or other civil divisions depending on the state. Populations typically designate those subgroups which face barriers to healthcare access in an otherwise well-served population, such as homeless or low-income groups. Facilities designate specific healthcare locations such as clinics, mental hospitals, or prisons.

Joey Bosa

Joseph Anthony Bosa (born July 11, 1995) is an American football defensive end for the Los Angeles Chargers of the National Football League (NFL). He played college football at Ohio State, and was selected by the Chargers third overall in the 2016 NFL Draft.

John Thain

John Alexander Thain (born May 26, 1955) is an American businessman, investment banker, and former chairman and CEO of the CIT Group.Thain was the last chairman and chief executive officer of Merrill Lynch before its merger with Bank of America. He was designated to become president of global banking, securities, and wealth management at the newly combined company, but resigned on January 22, 2009. Ken Lewis, CEO of Bank of America, reportedly forced Thain to step down after several controversies, such as the losses at Merrill Lynch which proved to be far larger than previously estimated, and the award of huge executive bonuses. He is currently a board member of Uber appointed by former Uber chief executive officer Travis Kalanick on September 29, 2017.

Jonas Hofmann

Jonas Hofmann (German pronunciation: [ˈjoːnas ˈhoːfman]; born 14 July 1992) is a German footballer who plays as a midfielder for Borussia Mönchengladbach.

Kentucky Derby Challenge Stakes

The Kentucky Derby Challenge Stakes was an English Thoroughbred horse race intended to become an annual race, but was run only one time on 18 March 2009 at Kempton Park Racecourse in Sunbury-on-Thames, Surrey. Open to three-year-old European horses, it was raced clockwise at a distance of nine furlongs (​1 1⁄8 miles, app. 1800 metres) on Polytrack.

The winner of the race was guaranteed one of the twenty starting spots in the ​1 1⁄4 mile (10 furlongs) 2009 Kentucky Derby held on the first Saturday in May on the dirt track at Churchill Downs in Louisville, Kentucky. The race offered a purse of US$150,000 of which $90,000 comes from Churchill Downs and $60,000 from Kempton. In addition, if the race winner exercised their right to run in the Kentucky Derby, they would receive a further $100,000 bonus payment plus would be given an automatic spot in the ensuing two legs of the U.S. Triple Crown series, the Preakness and Belmont Stakes.

No European-based horse has ever won the Kentucky Derby.

The 2010 race was suspended and the 2009 winner, Mafaaz did not run in the Kentucky Derby, although he did run in the Blue Grass Stakes.

Lane Pryce

Lane Pryce is a fictional character in the television series Mad Men, portrayed by Jared Harris.A newcomer to the United States as of 1963, he initially acts as financial officer at Sterling Cooper, but eventually leaves, along with a handful of his co-workers, to form a new agency, Sterling Cooper Draper Pryce.

For his performance, Harris was nominated for the Primetime Emmy Award for Outstanding Supporting Actor in a Drama Series in 2012.

Matt Dominguez

Matt Pilar Dominguez (born June 27, 1978) is a former gridiron football wide receiver. He was originally signed by the Denver Broncos as an undrafted free agent in 2002. He played college football at Sam Houston State.

Dominguez was also a member of the New York Jets and Saskatchewan Roughriders. He won a Grey Cup with the Roughriders in the 2007 Saskatchewan Roughriders season.

Dominguez along with his then teammate Gene Makowsky made a cameo appearance in the Corner Gas episode "Reader Pride".

Mineral rights

Mineral rights are property rights to exploit an area for the minerals it harbors. Mineral rights can be separate from property ownership (see Split estate). Mineral rights can refer to sedentary minerals that do not move below the Earth's surface or fluid minerals such as oil or natural gas. There are three major types of mineral property; unified estate, severed or split estate, and fractional ownership of minerals.

My Tutor

My Tutor is a 1983 American sex comedy film directed by George Bowers. The film focuses on high school graduates (including Matt Lattanzi and Crispin Glover) as they attempt to lose their virginity during the summer vacation before college, and one's eventual relationship with his French tutor (Caren Kaye).

Performance management

Performance management (PM) is a set of activities that ensure goals are met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, an employee, or the processes in place to manage particular tasks. Performance management standards are generally organized and disseminated by senior leadership at an organization, and by task owners.

Two miles

The 2 mile (10,560 feet or exactly 3,218.688 metres) is a historic running distance. Like the mile run, it is still contested at some invitational meets, perhaps because it provides an easier record to break for meet promoters (and corresponding bonus payment for participants), as well as its historical chronology. It is largely superseded by the 3000 m and 5000 m, and by the 3200 m in NFHS American high school competitions. The IAAF no longer keeps official world records for this distance; they are called world best instead.

The world best for men is 7:58.61 set by Kenyan Daniel Komen in Hechtel, Belgium on 19 July 1997. The women's record is 8:58.58, set by Ethiopian Meseret Defar in Brussels, Belgium on 14 September 2007.

Languages

This page is based on a Wikipedia article written by authors (here).
Text is available under the CC BY-SA 3.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.