What’s better…
170,000 salary with 30% bonus (predicated on the company hitting 100% revenue goal) or 195,000 salary with 10% performance/merit bonus (predicated on individual performance).

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$195K. Why gamble on a cold, lifeless entity hitting their revenue goal?

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I would always pick the money in my pocket guaranteed but I’m pretty risk averse.

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The latter. If the bonus is based on the salary figures. You are talking a $6,500 pre tax difference all stars aligning between the 2. Put another way you would need to accept nearly 2100 less a month and a major factor out of your control for the chances of a MAX of 6500 more per year total in the 30% bonus scenario. (Which = only 2.5 weeks pay at 195k - an amount you can make in your sleep on a side gig.)

170k: 2,083 less per mo salary with the chances of a 51,000 bonus that is fully out of your control (if they hit 99%, what happens? No bonus or discretionary?)

Or

195k - 2,083 more per mo guaranteed you can use for anything useful (investing etc) + vs. waiting for a big windfall that may not come + a nearly 20k bonus that you are more likely to get.

Work is for money. Go get it! Don’t fall for the trap.

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Depends where you live. In Ontario, that bonus gets taxed at 50%. Take the higher salary.

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$195k. Hitting 100% revenue is a pretty risky gamble.

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Bonus is funny money and never guaranteed. I’d pocket the money and treat the rest as icing on the cake.

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