Anyone know how long I have to stay after the fiscal year to get my bonus?
11 replies (most recent on top)
The key is staying after Dec 31st. If you leave in Jan you will get the AIP. If you are forced out on Dec 31st, this is not "after" Dec 31. You will not get your AIP.
other posters are also correct on the origins of AIP. in the 2nd half of the 1990s, 3M was struggling on earnings and also the stock price missed much of the late 90s market surge. Desi came up with the plan to have your raise be smaller but you could more than make it up if the bonus was above 100 percent, which many years it's not.
And yes raises to most people this year in NA and EU were in the 2 percent range. Expect maybe 3 to 4 if you are lucky this year. Still below inflation, but hey 3Ms such a wonderful compassionate company you shouldn't care.
And also yes, I'm hearing some "enhancements" are coming to WYW (as in hybrid will be pushed, first by appealing to your natural human desire to work together in person, and then, if thay doesn't work, telling you that a component of your performance rating is based on teamwork, which means stay at home people are not perceived to be team players).
Merry Christmas and holidays to all. Throw another log on the fire. Single digit highs for 4 more days.
"Please don't refer to AIP as a bonus." I totally agree.
When AIP started, they took money away from fixed monthly salary and moved it to the AIP "variable pay" plan. It was not additional compensation above and beyond what the employee was already earning.
So AIP is only a bonus if the payout is greater than 100% + the prevailing interest rate. Where is the incentive in a system where actually meeting all the goals results in a payout of 100% of the money they took away from your monthly salary? In that case, your reward is the privilege of making a series of 12 monthly interest-free loans to 3M. And anything less than 100% payout is a pay cut in addition to an interest free loan on whatever the actual payout is.
Please don't refer to AIP as a bonus. It's a scam. My groups AIP is estimated at 60% this year. Even after a cr---y 2% raise I'll be losing money.
I can confirm that you DO NOT need to stay until March to get the AIP payment. My significant other left the company in February and received the AIP payment in March.
Another thing to consider if you have an HSA and high deductible health plan is that the annual $600/$1,200 employer HSA contribution will be made the first week of January, 2023. If you quit after that is paid, you get to keep it. Keep in mind that there may be tax consequences if an HSA contribution is made in 2023 and you don't remain in a HDHP until the end of 2023 (either through COBRA, new employer health plan, MNSURE / ObamaCare, or a private insurance plan that is HSA eligible).
The correct answer to this question has been provided already. There is a corporate document titled 'Understanding Your AIP Payment' or something to that extent. If you quit after December 31st you will receive your AIP in March.
So if the AIP year ends December 31 but your termination date is Dec 31, does the "after" mean you needed to work till Jan 1st?
If so, 3M has screwed everyone being forced to leave Dec 31 or earlier. Unless you decide to retire and get no package but keep your bonus (as if a flailing company's bonus will be much this year)
What a great company, M and M boys! Is this another GE "best practice" brought to us by the wonderful James mcnerney?
You won’t get it unless you stay for AIP payments in April
As long as you stay until at least Dec 31, you will get the AIP payment in March.
Search 3M Go for a document titled "Understanding Your Annual Incentive Plan".
"In the U.S., here are the effects of employment status changes on Annual Incentive Plan (AIP) participation.
Retire:
Prorated based on time active in the plan
Resign or terminate during the annual performance period:
Canceled/forfeited, except in certain limited circumstances.
Resign or terminate after the annual performance period but before payment:
No reduction in incentive based on time active in the plan
Death:
Prorated based on time active in the plan."
The annual performance period is Jan 1 to Dec. 31.
Ok planning to quit Jan 3rd then and pray I still get my bonus. Hopefully they will be happy one less headcount.
You have to be employed on the day company pays out bonuses which is usually March end. Otherwise its gone, bonus is at companies discretion. I lost bonus 1 time lile this quitting in Jan, only to realize above
You have to be there the whole fiscal year so to be safe quit Jan 3 after the holiday. Some people do Dec 31 as their last day too.
There are documents starting as long as you go through the year you are good. Have copies of that just in case.
Recently though people have gotten walked out after turning in their 2 weeks so hopefully this doesn’t happen to you. Goodluck