Quarterly Bonuses

[RevMen]

My boss does some pretty questionable things with the company's money. For instance, he owns the building and rents it to the company at easily twice what the going market rate is.

When he figures out quarterly profits for profit sharing (10% of profits are divided between him and the other 2 engineers in the company, yes he cuts himself in on the 10% he doesn't pay directly to himself) he rolls any losses from the previous quarter in. For instance, if there is a loss of $6000 in the first quarter, we start the second quarter at -$6000.

Is this a normal practice? I honestly don't know.

It was frustrating last year because, despite the poor economy, we actually had good second and third quarters. But for the first quarter we showed a loss (due very much in part to the boss taking a company-paid trip to Eastern Europe for 2 weeks), and rolling that loss forward ate up our quarterly profit figures for the rest of the year. Q2 and Q3 were my best quarters ever in my career and it was disheartening to not see any reward for making real money in a crappy economy.

 

[Supe]

" I can't believe what a bunch of nerds we are. We're looking up "money laundering" in the dictionary."

 

[ALBin517]

At my first fulltime job, the owner employed his two sons. One son was paid better than the licensed professionals and all he did was customer relations (taking his buddies golfing, on fishing trips and to ball games). The other son was the best-paid surveyor in the county, although he was not licensed. All the other employees were underpaid to make up for the gravy-training sons. I only worked there until I could find something better.

Another firm that I worked for gave good bonuses. One year we did well and I got a 4% bonus. The next year we did much better but the firm moved into a new office so they said sorry - no cash for bonuses. It was one of those "the partners own the building and rent it to the company" deals so it was very disappointing that all the employees had to take a hit so the rich could get richer. The partners said we'd all finish ahead in the long run but I left the next year (to go back to school) so I really got hosed in the deal.

But I can't say I don't benefit from similar situations. My uncle frequently buys meals and such when I see him because he charges everything to his business.

 

[EnvEngineer]

30 years in engineering and I have lived the same story over and over. Our company took the profits from profit sharing and used it to finance a ESOP (employee owned) loan from the principals. Now any profits are used to pay back the loan no bonus no profit sharing.

This sucks because when I was hired (as a Principal Engineer) I was partially compensated for marketing and growth with profit sharing, now unless grow faster than they can piss away money I wont ever see a dime.

 

[thechosenone]

Private companies are not suppose to disclose the profit sharing strategy. Most of the time in the bylaws, the profit sharing is as per discretion of board of directors or owners etc.

And many times the company says they made no profit while the owners salary/rent of building etc is 2-3x the market. Company would say no profits but they would be giving bonuses behind the door to the top management. I think bonuses, profit sharing etc should be made transparent by law...

I have seen companies stating 401k match, profit sharing, great health insurance benefits in the company website or during job application. reality is that they do none of those... 401-profit sharing ( not done coz no profit), insurance- we provide but $1000/month...

 

[Sapper PE LS]

thechosenone, you do realize that you responded to a post that last saw activity 4 years and 10 months ago, right.

 

[NJmike PE]

and at 0125, no less

 

[Dexman PE PMP]

and at 23:25, no less

Fixed. Remember, the world doesn't revolve around the Jersey Shore.

 

[Road Guy]

bonus? How did you get a bonus, I cut out bonuses this year?

 

[NJmike PE]

Fixed. Remember, the world doesn't revolve around the Jersey Shore.