Bonus for engineers, is that done?

pany +20 million dollars per year

s of engineers getting a percentage of the savings?

employed engineers?

Not cash. That is for sales people. Engineers get stock options with a 5 year vesting period.

We have two cash bonuses per year: one Christmas bonus, same amount to all employees, and one fiscal year-end bonus, with scaling according to salary and estimated performance/value.

Company 401K contributions are some per cent of salary, but that's all controlled by law.

We don't bonus engineers, or anyone else, for specific project savings. They are supposed to do that.

onsdag den 22. januar 2020 kl. 00.48.23 UTC+1 skrev Klaus Kragelund:

pany +20 million dollars per year

s of engineers getting a percentage of the savings?

employed engineers?

I don't know if it is quite the same I've been in a big company where there was an annual bonus depending on he companys result and distributed depend ing on the annual evaluation you effort that year and a scale of how import ant you were for the company

e sums

it is in the law that an employer gets inventions you make related to your job but if it is very valuable you must be compensated

Bonuses are decided by managers. Unless the managers have an engineering background, they will assume that anything done by an engineer was easy, and could have been done by any other engineer. Consequently, the issue of bonuses will not arise.

Since the non-payment of bonuses to engineers will increase the profitability of a department, the manager in charge may get a bonus as a result.

Sylvia.

When Intersil was trying to recruit me, the recruiting company mentioned some sort of scheme wherein, if I remember rightly, chip designers could get some sort of bonus or royalty percentage if they developed a profitable product. I don't know how true it was because I didn't go to work there.

What does that mean? An exceptional accomplishment, evaluated in terms of project savings, instead of in terms of expanded sales?

ompany +20 million dollars per year

les of engineers getting a percentage of the savings?

r employed engineers?

re was an annual bonus depending on he companys result and distributed depe nding on the annual evaluation you effort that year and a scale of how impo rtant you were

That sounds rather like communism. JL's company appears to be more like fe udalism. The consultant is capitalism.

rge sums

r job but if it is very valuable you must be compensated

For various values of "very valuable" and "compensated"... determined by wh om?

onsdag den 22. januar 2020 kl. 03.05.48 UTC+1 skrev Rick C:

company +20 million dollars per year

mples of engineers getting a percentage of the savings?

for employed engineers?

here was an annual bonus depending on he companys result and distributed de pending on the annual evaluation you effort that year and a scale of how im portant you were

feudalism. The consultant is capitalism.

how you figure? sounds like JL's company does basically the same

large sums

our job but if it is very valuable you must be compensated

whom?

if you can't get to an agreement eventually the courts

ur company +20 million dollars per year

xamples of engineers getting a percentage of the savings?

n for employed engineers?

there was an annual bonus depending on he companys result and distributed depending on the annual evaluation you effort that year and a scale of how important you were

e feudalism. The consultant is capitalism.

While he pays bonuses, they are at the discretion of the feudal lord. Who sets the "evaluation"...? It's not tied to specific performance. Actually I think I skimmed your post too quickly. It seems similar to JL's, but I don't know your company in any detail. I see that fonz.dk doesn't seem to be a web site.

n large sums

your job but if it is very valuable you must be compensated

y whom?

So this is actually a law? I would expect there to be some manner of guide lines. What would the court use as a compass?

All employees get roughly the same FY-end percentage bonus, with some modest tweaks for exceptionally high (or low) contributors. I'm personally on the low end of the range.

We don't have project-specific bonuses.

I guess we could have negative bonuses, some punishment, if some product doesn't sell, or if we have to fix something expensive.

On Wednesday, January 22, 2020 at 10:48:23 AM UTC+11, Klaus Kragelund wrote :

pany +20 million dollars per year

s of engineers getting a percentage of the savings?

employed engineers?

The problem with engineers is that they aren't competing with the other eng ineers in the same company, but all the engineers working for the companies that compete with their company.

If they come up with a profitable innovation before any of the competitors, their company gets a short term boost, until the competition works out wha t they've done and copies it (or if it's covered by a patent, works out a w ay to get the same benefit with a different innovation).

Companies that have tried to compensate the inventor or the development dep artment with some kind of royalty on every product sold find that they have to re-negotaite the deal after a few years because it ends up paying out t oo much money.

ompany +20 million dollars per year

les of engineers getting a percentage of the savings?

r employed engineers?

re was an annual bonus depending on he companys result and distributed depe nding on the annual evaluation you effort that year and a scale of how impo rtant you were

rge sums

I read this one before, he got 700.000 USD in compensation:

r job but if it is very valuable you must be compensated

At our firm we get a bonus related to general performance and company EBIT etc. But it is quite low and not something we are in full control of

Cheers

Klaus

company +20 million dollars per year

ples of engineers getting a percentage of the savings?

or employed engineers?

But that does not get your employees to go the extra mile

Cheers

Klaus

Sales people often have a contract that pays 10% incentive of the sales profit, so potential huge pay outs

Engineers are suckers, get's nothing for boosted sales

Cheers

Klaus

It will depend on your contract and how generous or otherwise your employer is. Unless it is in your contract of employment then the answer is usually no. Although there have been a few hard fought cases in the UK where someone made a massively profitable technical breakthrough and then had to fight for decades to get any reward for their efforts.

This was the most high profile case in the UK only last year (scientist rather than engineer but same principle) - Unilever vs Shanks.

AFAIK he is the only one to have won such a case and had to take it to the supreme court to do so. All the others have given up in disgust.

By comparison the guy who invented the synthesis route for paraquat for ICI in the 60's was very fairly treated by his more benevolent employer (back then all UK employers were more benevolent than they are today).

The first company I worked for I was on the bonus scheme because what I did for them seriously affected the profitability of the company. The downside was that there was no paid overtime and sometimes you had to just keep working until the job was done.

It does in some high tech industries - usually in smaller companies.

pany +20 million dollars per year

s of engineers getting a percentage of the savings?

employed engineers?

I do not think I have ever received a bonus ( maybe gift cards or somethin g nominal) that was outside the scope of bonuses that everyone else in the company received. Corporations are faced with the dilemma that 80% of the work is done by good, but not exceptional people. The other 20% is done by people who all think they individually are doing most of that extra 20%. Giving out individual bonuses (outside of management where everyone expects that and nobody actually knows who is getting the bonuses or how much) ten ds to just destroy morale. Companies cannot survive by singling out "rock stars" and rewarding them financially. It makes for one very happy person and hundreds of resentful people.

Except that we do.

Look up Price's Law. I understand it's been verified in organizations of various sizes.

I know of one large and successful semiconductor company where the large majority of employees are useless or less. Managers are worse.

I agree that we should not make superstars of anyone, especially engineers. If specially rewarded, it should be done quietly.

The most effective reward is probably salary. If you give them a megabuck bonus, they will likely quit and become a surfer or something.

onsdag den 22. januar 2020 kl. 03.29.39 UTC+1 skrev Rick C:

your company +20 million dollars per year

examples of engineers getting a percentage of the savings?

pen for employed engineers?

re there was an annual bonus depending on he companys result and distribute d depending on the annual evaluation you effort that year and a scale of ho w important you were

ike feudalism. The consultant is capitalism.

o sets the "evaluation"...? It's not tied to specific performance. Actual ly I think I skimmed your post too quickly. It seems similar to JL's, but I don't know your company in any detail. I see that fonz.dk doesn't seem t o be a web site.

not my company, a big international company I used to work for

won large sums

to your job but if it is very valuable you must be compensated

by whom?

delines. What would the court use as a compass?

something patentable that is worth more than is to be expected from your job and salary