This is somethign I have come across when trying to benchmark comp. I see that some firms pay a stub bonus - I am not sure what this is? And how is it different to just for example receiving a bonus every 6 months and not yearly?
Thanks
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Stub bonus is bonus paid at year end when you haven’t worked a full year yet and therefore you don’t get a full bonus. Usually it’s a standardized amount across the entire group since you haven’t worked there long enough to get a rating/bucket, but you still get some amount of bonus. P
It is just referring to a prorated bonus since new grads start mid year, so they don’t have a full year of experience (and therefore shouldn’t get a bonus equivalent to a full year).
Wherever you work, you should never work for time without getting paid properly. Just because you start mid year doesn’t mean you should “skip” that year’s bonus. If a firm wants to pay every 6m, great, but if you start sept and dec is the bonus pay, make sure you get a prorated bonus for those 3m. It should all add up (I.e. you should have a “bonus” for every month you worked, nothing free).
Thank you
How does bucket/rating work?
Usually (but not always) there is little/no differentiation as you haven’t really done that much. Rarely will someone be crushing it with ~3 months of experience (and some of that is orientation, etc). So many places just do a flat bonus across all new hires.
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