Offer Letters (Bonus target)

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LBriscoe

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Is it customary for an offer letter for a new position to include a target bonus amount? Provided one was given during the verbal stages of negotiation.
 
From what I know, firms are generally reluctant to put target bonuses in writing. Even if they do, there’s nothing to hold them to that number. Maybe someone else has more insight…
 
ohai Wrote:
——————————————————-
> From what I know, firms are generally reluctant to
> put target bonuses in writing. Even if they do,
> there’s nothing to hold them to that number. Maybe
> someone else has more insight…
^^^^Right. Which leaves me wondering if there is any benefit in fighting with a new employer to get a number on a offer, which, as explained numerous times in the offer, means nothing. Any thought or experience would be appreciated.
 
It still helps to get as much in writing as possible. Suppose you arrive and your boss gets replaced 6 months later, you still have something so that when you are disappointed or elated, you can use to justify your disappointment or elation.
 
But then again, having a target bonus in writing might create a downward bias towards that number if you perform exceptionally.
 
nothing holds the firm bound to pay you a fixed salary either, since your employment is at will. that doesnt mean it’s not specified in the offer letter. the offer letter can explicitly state that the bonus is discretionary (obvious), i dont see how it puts them at additional risk. if it has been part of the negotiations, why being sketchy about it and not mention it?
 
I don’t see the point of putting a discretionary bonus in an offer letter. If they’re guaranteeing you some minimum bonus level for the first year or first few years then yes, I’ve seen that.
 
I had a ‘floor’ in my last two offers, but they were internal so might be different (and the bonus structure, although complicated, is very well laid out - so not really ‘discretionary’ with the exception that minimum goals must be met).
 
LBriscoe Wrote:
——————————————————-
> ohai Wrote:
> ————————————————–
> —–
> > From what I know, firms are generally reluctant
> to
> > put target bonuses in writing. Even if they do,
> > there’s nothing to hold them to that number.
> Maybe
> > someone else has more insight…
>
>
> ^^^^Right. Which leaves me wondering if there is
> any benefit in fighting with a new employer to get
> a number on a offer, which, as explained numerous
> times in the offer, means nothing. Any thought or
> experience would be appreciated.
check salary.com to see if it puts your total comp in line with market. you can get a fairly in depth report for about $20. well worth it in my experience. there’s probably a formula for how your actual bonus will vary around the target – usually based on personal/company performance relative to “expected”. maybe ask the employer to explain how the target and variation works.
 
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