When it comes to pro-rated bonuses (because of joining halfway through the year), what is your experience with how it is calculated?
A friend of mine believes both the $ amount and % will be pro rated. I disagree, I believe it will only be the $ amount (the numerator, if you want to look at it like that).
For example, if the bonus is pro rated for 6 months and the maximum amount is 50% of full years' salary, assume $200k salary, is it either:
- 50% of $100k: $50k
- 25% of $100k: $25k
Surely its #1? Never heard of the % amount being pro rated
Thoughts?
Never heard of 2, it’s normally 1. You don’t want to double penalize. You work half the year, you receive half your salary and half of your bonus. So if 50% is the max, you would receive a $100k bonus if you worked the full year. You worked half a year, you receive $50k.
Exactly what I thought, never heard of #2 either.
Cheers
1.
The first one. Second methodology sounds crazy and I've never seen that ever. If anyone tries to pull that shit on him he needs to tell the employer to fuck off.
Its #1. Also (pro-tip), if you are an experienced/lateral higher you can sometimes negotiate a full-year bonus with no pro-rating
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