Currently in a small B2B software company. Bonuses were introduced as an alternative to dividends, as just a few employees had stocks. As such, the total bonus

Currently in a small B2B software company. Bonuses were introduced as an alternative to dividends, as just a few employees had stocks. As such, the total bonus amount was directly tied to the total amount of dividends paid. The amount paid to each individual was determined by a few discrete levels, based on seniority and such. Thus, higher results typically meant higher bonuses, and it felt transparent and predictable. However, after many steady years we're now in a high-growth phase. So results are down due to many new hires, and consequently bonuses are down. Due to our change of pace, they're changing the bonus system next year. Back at my first job the company had a target-based bonus system. It was a bit dumb, because they couldn't bother seasonally adjusting the budget, just divided the target by 12, while activity flat-lined during July (summer vacation here) and peaked heavily in December (customers spending what's left of budget before end of the year). So we didn't really know how well we did until the end. And, as my boss mentioned when we were quite behind, the the target was set fairly arbitrarily at the start of the year anyway. Overall not a great way to do it.