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Depends on the company, plain and simple. Some are clear and transparent with bonuses, others keep it complicated so they can ultimately decide whatever they want.
Our was based on performance and other metrics. But supposedly the company can’t afford it this year
Chief
It’s usually a standard curve type distribution that merit gets put against. Like a team of 100 will have 67 people who get a 3. This is regardless of actual performance (but performance is factored in)
We’re told It’s based off budget and revenue. But how it’s actually divided among team members and decided I’m sure it’s all based on nepotism and favoritism.