The Year-End Bonus Debate

The compensation committee debated year-end bonus payouts for two long sessions. Revenue was on target; EBITDA was 4% below plan.

One camp argued for a below-target payout aligned strictly with the formula. The other emphasized the team delivered through unusual external headwind and that retention matters more than formula purity.

The committee landed on a 92% payout with full payouts for top performers in critical roles. CEO will communicate to all employees in a town hall before the check date.

The decision will satisfy nobody perfectly — which is often a sign of a reasonable compromise. The bigger test is what next year's target-setting discussion looks like.