Benefits January 30, 2002

2002 Bonuses to be Skimpier

January 30, 2002 (PLANSPONSOR.com) - This year, executives shouldn't expect the fat bonus paychecks that they've become accustomed to, a consulting group survey found.
Reported by

Hewitt Associates’ “Hot Topics in Executive Compensation” study of 202 major US companies shows that bonuses are expected to be:

  • as small as half target at 37% of companies,
  • between 1% and 50% of target at 28% of companies, and
  • on target at 22% of respondents

Further, 13% said they plan no bonuses at all this year.

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By comparison, more than half of those responding to Hewitt surveys in the last several years, said bonuses would be more than target.
 
Researchers said 22% of respondents plan to change the way they measure performance to qualify for a 2002 bonus, many establishing goals that are more consistent with today’s tight business environment.

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