I asked how bonuses are calculated to my company corporate last year. I came to know that our bonus sort of depend on comapny’s profit for the year but i never understand why it depends on how overall company is performing and not how employee is doing overall. My annual performance review went really well still got no satisfactory bonus which is demotivating. Do you think it is fair to give bonus on basis of how overall company’s benefits are?

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It might be more equitable to give bonuses based on individual performance, but that can also create a lot of problems. First of all, it requires extra effort as each employee would have to be judged according to some criteria to keep things fair. And there are bound to be resentments that result. It just causes less friction to dispense bonuses based on the company's performance.

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I don't think it's fair, necessarily, but I kind of get it. I just wonder if it affects executives and members of leadership the same way…

The idea is that collectively the company did well.

But your annual salary increase is dependent on your work and not company profits

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