Earlier this week Mr. Joe got some amazing news!
He got an incredible bonus and a very good raise this year. His company does an annual bonus and an annual performance incentive pay raise. Essentially if the company performance metrics are at or above targets then he would receive a bonus of approximately 10% salary or $7,690. Raises are based entirely upon the individuals performance review.
Earlier in the year he found out that he got an very good performance review but the company had not completed the bonus and raise calculations until now.
So what were the numbers?
Bonus – $9,200
Raise – $4,400
That bonus number is incredible because the company performance was very poor this year. Mr. Joe’s supervisor explained that the reason his bonus was that high was that he earned the better number through his individual performance and that while production was low so were costs therefor the company was able to maintain margins.
This puts his new salary at $84,000 and his new bonus target at $8,400 for 2017.
What this means
Mr. Joe started working for this company right out of college 5 years ago making $60,000 per year. Overall he has loved working for them and they treat him well and the pay raises have been good as well. We think that salary increases totaling 40% in 5 years is pretty darn good.
It also means that in this next year he will be bringing home a few more dollars each month and was able to increase his 401k contribution from 13% to 15% as well. We’re trying to get this to the $18,000 a year maximum by the end of this year and with this raise we’re able to do it and still have his take home pay go up to help with those debt payments.