I was comparing notes with other team members and it seems there’s confusion about bonuses this year. To my knowledge the bonus structure this year is new and different from last year and makes our earning potential based on band level less than the full amount based on the announced 65% psp. This is posted online aming our HR details, but seems like very few know about it and have even had a couple people insist that it is not accurate and that the bonus structure will remain as last year. Did I miss something?
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Just checking in to see if you all get it now.
@2amc+1toL8HGK makes sense. Since I was laid off I no longer have access to the internal pages and hadn’t looked prior to being laid off. That is confusing, especially if you’re newer to Nike.
@ 2gji it doesn’t have to do with bands/grades. They are confused because on the psp info page there is a table that shows what to multiply by if the payout is 25%, 100%, or something like 150% (I don’t remember). They are taking this table to mean that the multiplier can be ONLY these percentages, in other words if the multiplier is something between 25% and 99% then the multiplier is actually just 25%, which makes zero sense. They probably got confused because if the multiplier is less than 25% then yes, the multiplier is 0. But it’s not the same rule if the multiplier is greater than 25%. No matter how many times we explain it they refuse to believe it.
@2gji+1toL8HGK Just reading your response and your comments tell me you are a descent person! A salary of 260k for 25 years of work including 10 years at Nike is real fair. New graduates are easily making 200k working in AI and machine learning.
I wish you the best of luck for next chapter. I hope you land something very soon
Not this again. If you don’t understand how to read the website then you’re just not bright. It is not all or nothing: it specifically shows 25% because that is the minimum. They are trying to do the math for you to make it easy for you but it is just confusing you instead.
@2fee+1toL8HGK I’ve been getting PSP for over a decade and I am 1000% confident my calculations are accurate. I have gone through enough HR training on this topic to know what I’m talking about.
The 65% sent out after earnings IS THE MULTIPLIER. I can’t make it simpler than I have. Your pay x PSP grade % x multiplier % is how it is calculated. I’m no longer sure if the people claiming it’s more complicated than that are willfully uninformed or just new but it’s getting frustrating explaining it again and again. I suspect the main point of confusion is around individual PSP %’s which are based on grade (formally on band) and with that change not everyone seems clear on their % in the new model. You can look it up in Workday so you can estimate your own PSP. The changes to how they calculate the annual multiplier are they primary based it off profit and adjusted the potential range of that multiplier (with a BS email saying it lets us get an even higher multiplier % and glossed over it also enables and even lower multiplier %). As if we’re all too stupid to realize they were pi---d at having to pay out at 119% last year.
As for wishing bad things on me like an even more reduced PSP % because I made a good salary (THAT I EARNED) you’re a sad person. I was laid off in Feb so this low PSP multiplier is even more impactful. You don’t see me complaining about it or whining or wishing less for others.
I don’t get this attitude based on salary. I paid my own way through college, worked my a-s off for more than 25 years to get to this level. Why so much resentment for someone you don’t even know? Sheesh.
Also as I stated in another comment - sharing real salaries empowers other employees. I was trying to be helpful - lesson learned.
Actually @2dmu+1toL8HGK you’re the assh0le as I was laid off in Feb and now have zero salary except unemployment - $652 a week after taxes. I assume you still have a salary and job so maybe you should read the room.
I shared my numbers because I have nothing to hide. Employers want us to keep our salaries secret because it benefits them to have us all in the dark. If employees know real salaries they can better value their own skills and advocate for themselves. You’re welcome.
If you're irritated at the person posting their expected bonus of $52K you can take some satisfaction that they are using a target percentage that assumed we made 100% of forecast. If I read the tables for PSP correctly...that 30% target is actually going to be 7.5% for that level for this year...so...imaginary money go bye! We did not make 100% of our revenue/earnings/profit target so no one should be using the normal percentage modifiers. You have to look at the minimums which are a fraction of the norms. In the example posed by the $268K...this year, the bonus will be closer to $13K pre tax.
Read the room Ahole. The majority of the folks in here aren’t making anywhere near your supposed salary. You’re a jerk (but you’re anonymous so who cares right) for putting that out there.
@1pow thanks for the illustration but OP has a good point that the PSP calculation may be different now that they introduced the target percentages (HR changes like debanding and PSP changes are imo never in the employees’ favor).. and impacted employees may have different terms for PSP payout than remaining employees.
Guess we will see
@1dil+1toL8HGK that’s not quite correct. It’s a simpler calculation.
FY Pay (6/1-5/31) x Grade % x PSP Multiplier (65% for FY24) = PSP Bonus
My actuals (simplified the salary # because it’s easier as an example - read below for more specifics on that part like medical leave etc) are this -
$268K (FY24 Pay) x 30% (Grade 55 eligible %) x 65% (FY24 PSP multiplier) = $52,260 PSP pre-tax.
Hope this helps clarify.
There is also an old Excel spreadsheet floating around that helps you calculate your take-home bonus amount. Some of the old timers still have it - if you can dig that up you’ll have a pretty close estimate. I used it for years and it was always within a few hundred $’s of my actual take-home.
Why would any company give out bonuses in a FY that lost 30% of market cap ?
So the bonus is really FY salary x 0.25 x (grade target payout) x 0.65? She-eet..
I think many folks are going to be shocked at how low the bonus will be because they don't understand that the target percentage is variable based on the achievement of that year. We made it above the threshold which is 25% of target but obviously not 100% so the percentage target for your level is going to be waaay lower. It's not clear on the website but I believe it's all or nothing and not a sliding scale so we're getting the minimum percentage target which is a fraction of the typical percentage...like 1/4 or less what your target payout would be at 100%... depending on your level. After taxes, most people are going to see a thousand to a few thousand at best... It's going to be one of the lowest bonus payouts ever and I'm sorry but I think people will not be prepared for it. The senisble thing to do is assume about 1/4 the usual bonus and be pleasantly surprised if it's more than that.
Except for parental and maternity, I believe that is still 100%. Some leaves are exempt from bonus while a small few don’t impact your bonus
@1zvx+1toL8HGK - you’re also right. I was keeping it simple, but your calculation is more accurate. It is your actual pay from 6/1 - 5/31. If you take any medical leave time (took some a few years back) that also doesn’t count as your pay even though you’re getting “paid” during that time because it comes from the insurance company.
Are you for sure it’s salary? I don’t think that’s correct.
It’s something closer to last FY’s actual pay. That way your raise in August last year does not apply for the full FY.
Also if you are out without pay, that removes bonus compensation on time off without pay.
So if your salary was $268, unbelievable, congrats. That would represent August 2023 through May 2024. But your actual salary before August, let’s say was 4% less, $257,280… that’s your pay from June 2023 to August 2023 when it went to $268.
For an example, if you were on unpaid leave for the month of July, then your pay is that $257 June, $0 July, and $268 the rest of the FY. That’s $21,416 for June + $223,333 for the last ten months; $244,749
Now you do the math:
$244,749 x 30% x 65% = $47,726
Long story short, your “salary” is actual pay, not your current salary rate. I’m sure you didn’t take off July unpaid but that’s the example in how I think it’s done.
@1fey+1toL8HGK - thanks! I forgot to take that into account. Good catch.
Hey @1tcn+1, if 268k was your full year salary and you were terminated in May (as most people laid off in Feb), don’t forget that this year your gross salary was only 11 months and not the full 268k. Good luck in your new job search.
The bonus structure changed in a number of ways over the last 2 years. First, they got rid of band levels and moved to grades. Most ppl had their eligible bonus % stay the same in their new grade as it was in their former band. Example - S band = 30% and Grade 55 = 30%. Some did change but in my org bonus % remained the same for everyone when they switched to Grades.
The other change was to the bonus criteria - the actual details have always been a bit secret but the main change was tying our bonus multiplier to profit.
The actual individual calculation remains the same though -
Salary x Bonus % x Annual Multiplier = PSP Bonus
Using my own #’s (I was laid off in Feb so have no reason to be coy about my details) -
$268,000 x 30% x 65% = $52,260
At my grade (35) the target payout of 15% is the same as my former band (U). So for me, 15% times 65% times fiscal year earnings is the same for current grade is it was for former band.
Can you explain how it would be something different than 65% of your level’s target pay out?
Honestly I think it will be unpleasant surprise to everyone this year. Check back here on July 19 for reactions.