My coworkers and I received the bonus information for 2024 and it’s low 70% ….not 80 or 85 % as others were saying. So much for 9 hours for incentive eligible . You can take that bonus and wipe your behind with it.
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Should the bonus be capped at 5% of the base salary?
how to find out base bonus amount?
How about people with no bonus? Should we all just quit immediately?
The easiest way to think of this is that the pool is about 70% of what it was last year. As a quick example using easy numbers, if you normally get a $10k bonus with a 30/70 cash to equity split then you would've gotten a $3k check on your next payday, and $7k paid out in stocks in 3 equal payments starting next year and for the next three years. i.e. about $2300 per year in current year + 1, then +2, then +3 so you'd get your complete bonus after 4 years.
With a 70% pool, you're now starting from $7k. So you get $2100 in cash which means you get 1/3 of the remaining pool in stocks starting the following year which is about $1600yr for those three years.
Especially for those who were promoted for financial benefit to fiserv, or this is their first time working at this level these concepts might be new. Helping to explain them is a good thing to do (tm). Also more info can be found by way of Google looking up rsu sticks would be a great start.
Hope this helps!
Oh, and remember that they take income tax out of that cash incentive AND the rsus when they vest (when they become "real" stocks) Then to get the cash from those stocks you have to sell them and pay capital gains tax on them. As well as service fees. Meaning you're basically double taxed on those RSUs. Once as income, then once as capital gains.
Note that I'm not an expert. This is how I understand this to work. This is not financial advise, and I could be wrong. I suspect the tax info may need better explanation since I don't 100% understand it completely myself.
The only people this even remotely works out for are those with a VP or SVP title or greater
Depends on your base bonus amount. If it is 10% but is only funded at 70% then the effective bonus is 7%. So if your salary is 100k, then your bonus is $7k BUT you only get a small amount in cash - maybe like $2k in cash withheld at 40% and you get $1,200 in cash and RSU's that vest over 3 years.
From a company that is supposedly doing better than ever
How much is 70%?
Has gone down every year for multiple years now.
I am in the FTS group. I hope other groups got more than this