Is it worth staying through year end for the bonus this year? I'm seeing mixed views on expected payout vs target. Do you get a payout if you are on payroll as of 12/31, so leaving in January would be OK?
11 replies (most recent on top)
@kk that's a cute way to look at it, but it's not reality.
You don't get it unless you stay the whole year and it's a discretionary amount that's only loosely connected to real numbers (plenty of times when leadership has decided to put their thumb on the scale).
If it's not considered earned until the following year that's not "part of your salary". And if Bill Brown can just decide the number is too high and reduce it without repercussion, that's a discretionary bonus, not part of your paycheck.
I realize that the lie told back when they were introducing it was that it's part of your salary, but that hasn't been an accurate reflection of reality for many years.
You know AIP is NOT a bonus, right? It is a portion of your salary that is held back (7.5%, 10%, 15%, whatever the particulars for your job grade) and, if business results and your own performance warrants it, you may get it back at the end of the year. Sometimes you get less than was held back, sometimes more. But it is not a bonus.
@gy That's a termination. If if happens mid performance period it's forfeit.
What about laid off? What happens to AIP then?
AIP (what most office workers get) is only paid out once a year, and you lose it all if you quit before the end of the year.
SIP (what sales guys get) is paid out quarterly.
Employment Status Change / Impact on Annual Incentive Plan (AIP) Payment:
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
From the AIP FAQ:
Q: How is AIP pay affected when an employee resigns or terminates during the annual performance period (U.S. Only)?
A: An employee who resigns or terminates during the annual performance period will forfeit their AIP compensation for that period, except in certain limited circumstances.
Annual Performance Period is defined as January 1 to December 31.
My understanding is that you lose the AIP payout if you leave prior to the end of the year, unless you are 55 or older, in which case 3M considers you "retired" no matter what, and then they give you a prorated payout at the same time everyone else gets theirs.
It is pure theft, but that's current 3M, so no big surprise.
@bv nope you get 50% if you get to July 2st
@aq not true. You forfeit it is you leave mid year.
@OP If you leave prior to the end o the year, your AIP payout will be prorated based on number of months worked.
@OP if you mean AIP yes if you are on the payroll for the full year you get the total payment , I believe it gets reduced if you leave before year end and is paid in Qtrs so if you leave in July you get Q1 and Q2 . As for value who knows ! It's a back art these days