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We have an election each year at senior to either take or defer a bonus up to 3 years. The max payout is 12k per year for three years.
So at senior 1 they tell you you can either have this 6,000 bonus now or if you wait three years you'll get 12k or something? So if you elected to defer and left at senior 2 then you lost the bet?
That's right PWC1. It's 4k to be paid out in a year or 8k for 2 year deferral and 12k for 3 years. You have to elect what you want in December and then a no deferral would get paid out in a year from May (no deferral 12/2016 gets paid 5/2018). They like to promote a 3-2-1 plan where you would get paid out 24k in your first May as Manager. If you leave before, the payout, it's your loss.
Also, in audit, promotions are effective July 1, but raises are in October. They give you a couple grand (don't remember what I got) to make up for that lag since you are essentially have the title but are getting paid senior salary for a quarter.
Is it a standard 4K across the firm or different based on location and performance levels? Interesting to hear how other firms handle bonuses
That's firm standard. It's really a senior bonus but has the potential to be paid out during your first year as manager. Can't speak to an actual year end Manager bonus yet as I'll find out in October or whenever discussions end up being.
PwC has standard percentage bonus ranges for each performance tier, up to 17% annually for the highest tier at the senior level, higher annual bonus percentages at manager.. there's also an additional 20% "milestone" bonus paid out after your first busy season as a manager in addition to the annual performance bonus
Sorry to completely answer your question, your first election is in your first year as senior. So new promotes 7/1 elect in December and if they don't defer will get 4k in May 2019.
Wow, seems like a long time to wait for your senior 1 bonus even without deferral.. PwC bonuses are announced in June and then paid out in Sept.. but they are paid after the performance year so your senior 1 bonus is paid out a few months into your senior 2 year... promotions and pay raises are effective July 1 each year
Do associates get bonuses at KPMG?
@PwC 1 this bonus program is in addition to annual bonuses, every level is eligible for annual bonuses.