Define 'Discretionary' Bonus

[Charley Farley]

Have seen a couple of job adverts with £x,000 salary plus 'discretionary' bonus...

My bonus is made up around specifuic targets up to the total percentage... I assume a discretionary system is one where it is almosty beyond your control and down to the top-dogs to make the call?

Does anybody work within one of these systems; and if so, does it usually pay out?

Many thanks

CF

[anonymous-user]

It's just another word for a recognition scheme, without putting any structure around what qualifies for payments. If they have any targets they'll be so vague and undefined that there meaningless. Generally it's just an opportunity for managers to give mates & arse lickers a bit more cash.

[fido]

Or a way for HR to escape from making bonus payments in cases of redundancy or termination i.e. it's not a guaranteed bonus.

[Bonefish Blues]

...or more usually a way to describe a clearly defined but non-contractual bonus scheme.

Described this way to allow its parameters/targets to be changed annually as necessary without getting into problems with changes to Ts & Cs.

[anonymous-user]

I slightly disagree bonefish, a non-contractual bonus can be written in to any T&C's as "you are eligible to participate in the annual bonus program which is subject to change at any time and complete removal". This is how in my experience it is normally done. The rules and measures are then set in advance of the performance year so everyone knows what the playing field is, normally a mixture of company, team and personal elements.

Descretionary bonuses are normally completely personal and are applied at the whim of the managers and/or board.

Edited by anonymous-user on Monday 16th November 12:59