Also read the following related article:
Investopedia defines a performance bonus as “compensation beyond normal wages that is typically awarded after a performance appraisal and analysis of projects completed by the employee over a specific period of time”.
Mike Wills interviewed Andrew Woodburn, Executive Search Expert and Managing Director at Woodburn Mann, about the science of the performance bonus.
Scroll down to listen to the audio.
You need good governance to make a share incentive scheme work.— Andrew Woodburn
Some sectors are more suited to performance bonuses than others.— Andrew Woodburn
How do you peg what key deliverables are?— Andrew Woodburn
Performance bonuses need to differentiate between skill and luck.— Andrew Woodburn
How performance bonuses are paid must be easy to understand.— Andrew Woodburn
Bankers used to be able to earn many times their basic salary. This is changing.— Andrew Woodburn