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Pro
like the bonus pool that pays employees ? WTF no.
Often clients are liable for a small amount of overspending [like 10-15%] - assuming your media is not guaranteed $h!t happens.
Pro
Legally - probably legal. Bonuses are a gray area legally and usually some stipulation about company performance and there are rarely guaranteed.
also, not a lawyer.
How about the Agency fires the person who promised the client the moon and then allowed overspending to get out of hand and puts their salary back into the bonus pool?
Really, this just shows mismanagement at the administrative level. The things some agency management does and says make me shake my head sometimes.
Rising Star
Uh wtf? What led to the overspend? How bad?
Literally never heard of this as a resolution strategy
Technically, If it created a large unbillable, that hits the bottom line which hits the bonus pool. But to say they are taking it out of the bonus pool is a really messed up way to call it out even if that is the case.
Pro
I think it’s this. Saying something like “if you overspend it affects the bonus pool” is a another way of saying overspending affecting profitability [same way team lunches affect the bonus pool]
Sorry, can you explain what a bonus is first?
Ron Burgundy : Well, I could be wrong, but I believe bonus is an old, old wooden ship that was used during the Civil War era.
Are we talking about an overspend of f’uped level proportions here?
Unsure, but enough to bring in the finance lead and ceo apparently. It’s just crazy that this affects everyone regardless if they were a part of it.
I work for GroupM and we have messed up where we need to eat $100k here or there. They always say they “write it off” but I don’t really know what that means and maybe it has to come from somewhere but they’ve never said it would come from a bonus pool.