Word on the street is that managers are seeing 100% bonus allocation for their direct reports (source, from a manager in DDAT).
Can anyone confirm the accuracy of this? Seeing the same thing on your side?
24 replies (most recent on top)
Most people will be lucky if they get 30%...I'm thinking more like 20-25% after the leadership overclubs the 4s...
Managers seem confused by this all over the company.
The easiest way to put this....
"Yes, you will be allocated 100% of the lousy 30% bonus funding pool"
MIP will be released in two weeks. The MIP is expected to be 30% and will be multiplied by whatever your manager inputs into Workday. If they input $10k and the MIP is 30%, you will get $3k. Enjoy!
For the layed off folks it depends on your severance agreement. Many are bonus eligible.
What about the people who were laid off in Oct as part of the 2900 layoffs? Do they get any part of the bonus?
when you get the bonus allotment in the tool it always say 100% regardless of the % of bonus that was handed down. that 100% is distributed amongst employees by % so when they are done it should equal 100. damn people, get back to work, take a training class, write your resume, and if you hate it so much don’t let the door hit your a$$ on the way out
Every grade level has a bonus target associated to it.
Manager determines rating 1-5
Each rating is assigned a payout percentage
Managers have some discretion on the percentage
For example employee 1 has a target percentage of 10% and they make $100,000 salary, their bonus potential is $10,000
If the manager rates them a higher performer they can apply more than 100% of target. But if they do, let’s say 105%, the addition 5% comes from someone else, they would get 95%. So yes managers have a 100% of their pie to allot BUT the kicker is the company is only funding at 30%. The employee making 100k with 10% target at 100% rating will be getting $3000 not $10,000
Information is power, everyone.
First, we have to understand how the MIP plan works. If you go to Colleague Zone, you will find a document called "2024 MIP Plan Document" which details how this bonus structure is funded. Part of it is NPS-based (20%). The large remainder (80%) is based on a proprietary version of adjusted operating income that the board decides at the beginning of the year. If you read the fine print, they can basically make this as low as they need to or make the plan unrealistically high if the company is sinking...which it is. Anything <85% of the plan for this metric makes the funding for MIP 0%.
Of course, if it's 0%, no one gets a penny unless their managers try to get them a worthless RSU award. This won't be known to us until after FY earnings is reported on 2/12. Buckle up.
Also heard it's ~30%
Who depends on company bonus lol. Headcount increased this year in my team, so I’m getting more bribes from hiring contractors. Life is good
Been told by my VP it’s 30%
Until funds are cascaded you won't know, however I'd expect 20-30% funding. The actual by employee is where mgt makes choices on how to distribute.
I promise you. They model at 100% and apply a modifier when the board approves. It's literally in the emailed instructions - and how they do it every year.
As to the confusion it's misleading when you go in workday to allocate because it does show 100%. If anyone thinks they are getting close to 100% or telling staff that is in for a rude awakening. It's been communicated on 11/18 we did not meet business targets and funding would be "approximately" 30%.
Last years bonus was pitiful - it’s hard to imagine this year would be any better. What is the incentive for working hard and meeting your numbers
I guess I'm not understanding. I was told by a SR Manager that bonus funding is 100% - that is what she received to distribute to her folks. I'm not understanding how they can give managers 100% to allocate then chop it down to 30% of that. This makes no sense
Management must expect a mass exodus once the bonuses are paid. The only way they prevent employees from jumping ship is by offering A LOT more employees long term incentives (aka stock options). They over leverage the most senior executives but never the front line. If not, they will continue to bleed talent when they are already anemic. Expect a lot of pain over the next 12 to 24 months.
We did comp today. Workday will show the budget at 100% funding. most areas are getting around a 3% merit increase which is surprisingly high compared to previous years. Bonuses will be less than 30% of what you allocate if you keep the allocation at what it currently shows. Keep in mind managers have room. So I could give you a 1% merit and someone one else 4% if I stay within hr guidelines and budget. Same with bonus some may walk away higher than 30% if a teamate gets less.
30% of your bonus pool is the likelihood. Last 3 years I received 150%, 120% then 80% last year respectively. Performance rating has no relation to it just company financials or however they spin them
I thought the numbers looked weirdly high given what we know about the company’s financial performance so, I believe the others when they say everyone models/initially input at 100% and then they dial it back (or up) to whatever it’s actually going to be later on. I’m new to people managing at CVS so hadn’t seen how it works before. But it makes sense that’s why comp info doesn’t get released until 3/3. If they weren’t going to adjust it we’d have the final numbers sooner to communicate to teams.
Expect 15% as a cap.. CVS Health is a financial trainwreck..
Every year it's 100% merit is 3% and LTI depends on directs. Calibration isn't till next month with the final numbers.
Actual funding will be less than 30% i guarantee it. This company has no money
lol you model at 100 and then they modify back to the funding at the end