Sure, it may make us a little nerdy, but we find it interesting to keep tabs on how companies are managing their variable compensation programs—for better or for worse. And we thought a quarterly roundup might be useful. Let’s jump right in.
Boeing increases incentive pay tied to safety amid production issues
The Wall Street Journal reported that Boeing is overhauling how it pays employee bonuses to emphasize quality and safety over meeting financial targets. Operational targets will make up 60% of the annual bonus for civil aircraft staff according to Fortune.
Target increases employees’ bonuses after $2 billion in profit growth
Salaried employees—namely, store managers and supply chain operations leaders—will receive a large bonus reports NBC News. A company spokesperson said eligible Target employees received 100% of their 2023 bonuses, up from 50% the previous year. The company wants to rewarded employees for strong profits.
Game developers at Blizzard lose bonus after a change in policy
The developers of the recently released Overwatch 2 won’t receive any bonus compensation due to the game’s lack of commercial success according to GameDeveloper.com. The company enacted a new policy last summer which tied payouts to a franchise’s overall performance.
GM adapts its bonus structure to reflect new company goals
The Detroit News reported that General Motors changed its bonus plans for salaried employees to “match business needs and align more closely with our strategic goals,” according to a GM spokesperson. The new plans include targets for EVs, software and services, and GM’s AV business.
The average Wall Street bonus fell to $176,500 in 2023
This was despite a 1.8% increase in profits during the same period. As reported in the Associated Press, New York’s comptroller Thomas DiNapoli explained the 2% dip, saying the industry took a “more cautious approach” last year and expanded the labor pool. For many on Wall Street, bonuses exceed base salary and are heavily driven by individual performance.
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