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At AP, I think once the discussions occur it’s about 2 weeks to bonus payout.
Performance outcome disclosed early-mid December. Bonuses paid out on Dec 31
Performance year ends in Sep-Oct but the outcome is only decided in late Nov. We have a 2-2.5mo delay between getting our outcomes and the bonus. Doesn’t seem long at all to be honest.
Chief
I think we’ve got a long gap.
Performance year wraps in March.
Outcome communicated in June.
Bonus in first week of September.
Then all the big 4's timelines are ridiculous
Rising Star
It’s not complex, it’s a retention strategy.
Below MD we historically notify early November,end and pay out before thanksgiving
Rising Star
In fairness, that is the real reason. We could change the system to make that not an issue, but that’s the reason. Our earnings are announced around Jan 30 then we pay around Feb 28. Not that big a delay really.
Rising Star
It need not be complex.
At my firm, staff bonuses go out in the last pay period before Christmas. They are determined in the weeks before that. We close the books on our financials two months later at the end of February at which point partner bonus payouts are completed.
There’s no reason to wait until total financial results are known because we budget for staff bonuses when we have a pretty good picture of overall firm performance - which doesn’t take until the very last moment. Our final profit ends up looking quite similar to our late Q4 projection every year because how wrong can you possibly go?
Rising Star
We define our bonuses based on GAAP profit, which yields this outcome. If we had a different system, you’re right that we could use estimates and be slightly faster. It would only be about a month faster though.