Tag: Bonuses

Bonus Watch ’11: KPMG Officially Rolls Out “Early Career Investment Bonus” Program for Senior Associates

Last month we told you that KPMG was kicking around the idea of loyalty bonuses for senior associates. Today we bring you the good news that the firm has officially announced the “Early Career Investment Bonus” which more or less amounts to a loyalty bonus.

This news was brought to Klynveldians this morning by John Veihmeyer and Henry Keizer (full memo on page 2). Let’s take a look at what the boys had to say:

Here’s how it works: If you are a current CSD senior associate with a 1, 2, or 3 rating you will be awarded $4,000 to be paid on May 15, 2013, provided you are employed by the firm on that date��������������������ut it gets better. By December 31, 2011 (just prior to the earnings period), you can elect to defer that $4,000 award for one year or two years and watch it grow:

• Defer the bonus for one additional year and receive $8,000 in May 2014
• Defer the bonus for two additional years and receive $12,000 in May 2015

And it gets better still because next year the cycle starts all over again. And, the following year, it starts again! So a typical first-year senior can look forward to three ECIB cycles with the opportunity to “layer” up to $36,000 in total bonus payments by the end of the last cycle. Alternatively, participants who are eligible for multiple ECIB enrollment cycles can choose different deferment options for each cycle, giving them theopportunity to customize the timing and amount of their ECIB award to meet their own needs or particular life events, like a down payment on a new home.

Obviously the catch here is that you’ll have to endure the next few years of your life within the House of Klynveld. But to that end, it seems like a halfway decent opportunity. Some might see this as a suicide mission but if you do in fact make it to May 15, 2015, that’s $12,000 in your pocket. John and Hank even gave us a nice example:

As this example shows, it will take a pretty huge commitment from anyone looking to score all three of the cycles for the big payout of $36,000. SIX. YEARS. AWAY. I won’t even begin to try and tell you what can happen in that time frame. Obama will have finished his second term by then (assuming re-election, obv). Countless people you know who are gigantic losers will get married, have kids and then probably get divorced. Facebook (and many people on it) will be dead. I’LL BE ON THE CUSP OF MY 40s. Get it? This isn’t exactly around the corner, people.

All told, this is a pretty progressive idea put out by KPMG and it seems better than the Above and Beyond awards which were a total flop.

So HoK, what say you? Got any career moves planned in the next two years or you sitting tight for the $12k? Anyone feel like the firm will take the opportunity to guilt those that don’t defer the bonus? Does anyone know if this in addition to any annual incentive comp? Discuss.

KPMG Loyalty Bonus

Comp Watch ’11: KPMG Kicking Around the Idea of Loyalty Bonuses for Senior Associates

We’re still waiting to hear what the Next Level is but this should tide you over in the meantime.

I’m a second-year audit senior associate at KPMG in the New York Office. This past Wednesday there was a round-table discussion with about a dozen seniors to discuss compensation. I’ve been looking on Going Concern to see what has turned up, and since I’ve yet to see anything i figured I would send along what was discussed…

The meeting was run be a couple of our heads of compensation, and they were certain to tell us that in no way has this been approved by leadership, but as long as feedback from the round-table sessions is positive, they think it has a good chance of happening. They asked us about how the above and beyond award [Ed. note: aka utilization bonuses] was received, to which everyone responded negatively, and they unveiled their plan for future bonus compensation to reward loyalty for the firm. They said that this plan would be in addition to any raises and variable comp that the firm already has, so this would act as a reward for loyalty to the firm. I will highlight the details below.

-This plan is applicable for senior associates
– In December everyone makes an election that they classified as immediate, one-year, and two-year. The immediate pays $1,000, the 1-year pays $4,000, and the 2-year pays $8,000. This election would be made each December by senior associates. One example they gave of a first-year senior associate entering this bonus program was as follows:

December 2011: two-year election – pays $8,000 in May 2014
December 2012: two-year election – pays $8,000 in May 2015
December 2013: one-year election – pays $4,000 in May 2016

They were selling us on the fact that you would be paid out $20,000 in the span of twelve months, which of course sounds pretty great. One thing to keep in mind is that the terminology “immediate”, “one-year”, and “two-year” isn’t completely accurate. In reality it is more like one, two, or three busy seasons. Some of the particulars are that once you make an election you’re stuck with it, so if you take the immediate payout and happen to stay another few years, you are less loyal than someone who knew ahead of time. Also, if you leave the firm before you reach your payment date you obviously get nothing.

The plan was generally well received in the meeting, but didn’t get good reviews at all when I told some of my co-workers about it. I am curious to see how others feel about it. We all seemed to agree that it didn’t seem worth it to take the $1,000 payout because after taxes you’d barely notice it, and that it would take real guts to take the $8,000 payout, because as a first-year senior associate the length of your deferral is longer than your employment at the firm to date, so you never really know if you’ll still be there to collect.

Say what you will about the KPMG, they are trying to get creative with the bonus structure. Whether or not it takes with Klynveldians is another matter entirely but you can get started by commenting with your reactions below.

Bonus Watch ’11: PwC Gives Most of the Staff a Pat on the Back

Along with last Friday’s news of “exciting changes” coming in the compensation structure, we’ve received word a little bonus paid out PwC’s last run:

I’m a little surprised no one has emailed you about the bonuses that were paid out this last pay period to PwC associates and seniors. This wasn’t across the board to everyone like the first December bonus [Bonus Watch ‘10: PwC Holiday Payouts Coming In]. I think first years all got $500 (since they didn’t receive the first December bonus) then everyone else received a bonus that was tied to performance/utilization (and I’m told some individuals received nothing if the managers/partners thought they didn’t cut it). I’m curious what the payouts were in other markets.

I’m a second year senior in the Midwest market and got $1200. I know of another senior up for manager that received more than that. I think this is separate from whatever changes they’re going to announce this week about our pay structure. Pretty much the message I got from my partner was this was something like a down payment on the year end bonuses, which makes me believe when our year end bonuses are announced, they’re going to immediately bring up the money they gave us in December (two bonuses for some) and then this, and say that’s why our year end bonuses are lower.

The webcast is supposed to be today but we don’t have the details and haven’t heard anything yet, so keep us updated.

Bonus Watch ’11: Some Details on KPMG’s New Utilization Bonuses

Who cares what they’re doing in Luxembourg, anyway? Our tipster qualifies some of these numbers for the new bonus program but assures us that they’re in the ballpark.

Details of the utilization bonus came through to managers in the NY Office to prepare them for the announcement to staff. Payments will be made in April and October based on total billable hours. Three Tiers T1 – 1700 hours, T2 1800 hours, T3 1900 hours, must meet or exceed hours listed. Bonus amounts based on base salary and level.

Associates are as follows as a percentage of base (might be slightly off, SA here and didn’t pay much attention to Associates pay) T1 – 2% T2 – 3%, T3 – 4%. Senior Associates T1 – 2.5%, T2 3.75%, T3 5%. So for a year if you reach 1900 hours, 950 Oct-April and 950 April-Oct, you would have received 10% of your base pay as a bonus broken into 2 payments.

I might have some of the numbers slightly off, as I read over my managers shoulder, and am only interested in Tier 3 SA as I had 2100 billed hours last year, but I think they are generally accurate. This was for IT Advisory. I know other Advisory practices have the same pay out rates but lower hour expectations by tier. No idea about Audit or Tax.

UPDATE: Tables from the advisory email that was sent out earlier today:

If anyone can confirm these numbers for IT Advisory, please get in touch. Likewise, [I]f you’re in other advisory groups, audit or tax and have the details, email us and we’ll update.

Bonus Watch ’10: Some McGladrey Employees Are Getting Impatient

Last month, we shared some bonus news with you courtesy of McGladrey that included a couple of extra days off (including tomorrow), access to baby/pet/parent sitters and yes, there is money involved.

Maybe because there are only less than two shopping days, some people are getting impatient:

Well, it’s the morning of our last day of work before the holiday break and employees still don’t know if they are getting a holiday bonus. It was stated to us bonuses are back but no communication has been sent out. What are they waiting for? Many people are on vacation already since we are off Thursday and Friday. Is Santa going to deliver it to each of us individually?

You think they could communicate that. Or maybe you have to be a hot shot partner to get a bonus. I for one know I will be pretty pissed off if there is no bonus, especially after the company wasted all that money on a 144-foot cake that went to waste earlier this year.

They can talk about how great we all are and what we have to do in the coming years but it’s all hogwash if they don’t give us a bonus. I know one thing, Steve Tait [former President of RSM McGladrey] would have made sure we got bonuses…will C.E.?

– Disgruntled in McGladrey Land

We have three main points here:

• Ranting about “no bonus” after a lengthy email from C.E. Andrews and Dave Scudder explaining that there would be bonuses could easily misconstrued as “psychotically cynical” but perhaps there have been broken promises in the past. If so, we haven’t been made aware of this.

• The email C.E. and Scuds stated “the pool will grow based on our year-end performance,” and “In January, we will be introducing a new program to provide real-time recognition and monetary rewards,” so maybe “nice” is virtue in Minnesota but “patience” obviously isn’t.

• We hate to break this to you but Santa Claus will not be delivering your bonus. Santa Claus is not real.

Bonus Watch ’10: KPMG Announces Mid-year and Year-end Bonuses for Exceeding Chargeable Hour Targets

Fresh off yesterday’s news of an improved FYE ’10 (and possibly more red meat!), KPMG announces their mid-year surprise. This should make busy season interesting, no?

New Above & Beyond Award for Staff Linked to Chargeable Hours
A Message from Jim Liddy, P. Scott Ozanus, and Mark Goodburn
8:11 AM ET, December 17, 2010

As we near the end of the first quarter of FY11, we are pleased to report that the firm’s business strategy is working well and yielding financial results that exceed our operating plan.

We are busy across Audit, Tax, and Advisory, with many of our client service professionals—especially staff—working particularly hard. While we are increasing our hiring efforts to meet the demand for our services, we also feel that it is important to recognize and reward outstanding efforts of our team members.

To this end, we are introducing a new Above & Beyond award that will provide all eligible Audit, Tax, and Advisory associates and senior associates who exceed chargeable hour targets with meaningful FY11 cash awards.

Above & Beyond awards will be paid in April 2011 and October 2011 and will be in addition to any year-end variable compensation or merit increases.

More details about the program, including award amounts, chargeability thresholds, and program guidelines will be communicated functionally by January 5.

The Above & Beyond award recognizes associates and senior associates for extraordinary effort while we continue to address our resource needs. And, in line with our compensation philosophy we will continue to monitor the marketplace to ensure that all our people are provided with competitive compensation that differentiates exceptional performers with superior rewards.

Our commitment to the highest-quality service to our clients requires that each one of us continues to do our best work and meet our objectives. Thanks again for your continued hard work, your outstanding contributions, and for all you do to help our firm succeed!

So, House of Klynveld pre-managers, what’s the consensus? It’s an extra bonus, paid twice, all practices are eligible and the firm will “continue to monitor the marketplace” (translation: read Going Concern) to make sure things stay competitive. It seems like a decent deal, although the award amounts are TBD. The only problem that we foresee is the time-honored tradition of some people putting in face time merely to run up their hours. Granted, budgets should help self-regulate that phenomenon but we all know how well that works.

Anyway, discuss your thoughts and let us know when you hear the award amounts.

(UPDATE) Bonus Watch ’10: PwC Holiday Payouts Coming In

This just in:

PwC West Coast just got issued the increased spot bonuses you talked about in this article:


[Bonus Watch: Pre-Turkey Spot Bonuses at PwC?]

From what I have gathered, they were either $1,500 or $2,000 in amount. (I have talked to several peers about this)

This is in addition to chatter we heard last week about bonuses being awarded in New York. If your city’s office is spreading the holiday cheer, discuss below or email us the details.

UPDATE, Thursday circa 11:00 am: Another tipster begs to differ on the amount:

I haven’t checked my paycheck yet- but my bonus sure as heck wasn’t $1500-$2000. I was told I was getting about $800.

Compensation Watch ’10: KPMG Discussing a Mid-Year Bonus (or Something)

After moves by Deloitte, PwC, McGladrey and now Grant Thornton, we have now heard that KPMG is discussing a mid-year surprise.

The only thing is, there aren’t a lot of details at this point. The firm’s first quarter is not over until the end of this month, so the pool likely hasn’t been determined and it isn’t known whether the mid-year comp will be paid as a bonus or as a merit increase. Our source on the matter speculates that it will be a bonus rather than a raise but it is fairly certain that it will be structured in a way that will incentivize employees to stay with the firm. There has been steady stream of people leaving (which is not atypical this time of year) and there are hopes that this show of love will stem the tide.

So while it appears that the House of Klynveld has heard your grumbling about anteing up, time (and the amount of money) will ultimately determine if this will satisfy the troops.

If you’re familiar with the talks or you have more details, email us the details and discuss your thoughts below.

UPDATE – circa 2:10 pm: Some thoughts on a non-bonus approach:

Pure (educated) conjecture on my part, but I would assume that the mid-year “surprise” would be a raise, as the firm is apprehensive at this point about giving bonuses, because people could just take them and leave. Harkening back to our SOX-404 years (2005), we gave multiple raises, bonuses and awards throughout the busy season (i.e., if you worked 60+ hours in a week, immediate $200 award) with a bonus at the end of the tunnel. I seriously doubt any early 2011 compensation would be front-loaded.

And then, in case you weren’t already aware, there’s this:

In other news, [the Dallas] office has been reaching out and giving offers to people they have previously laid off and are seeking out experienced hires. Not sure if it’s firm-wide, but an interesting sign of desperation nonetheless.

Compensation Watch ’10: Grant Thornton Kicks Off Hanukkah

From the mailbag:

I work at GT as an associate in [a Southwest] office. Partner called to tell me i got a 1k bump to salary. It appears that GT is giving out raises in December. They are calling them market adjustments…

There seems to be confusion as to whether this is a bonus, lump sum raise, or spread out over the year. My partner told me it’ll be spread out over the year and it was a permanent raise. Others have been told it is a lump sum bonus. The new A1’s found out yesterday their starting pay was increased. I’ve talked with seniors and none of them have heard anything I know about, and they seem pretty pissed at the whole situation.

Are SAs getting blanked? Is this happening anywhere else? Inform everyone below or email us if you know the scoop.

Bonus Watch: Pre-Turkey Spot Bonuses at PwC?

This just in:

Was communicated a spot bonus yesterday, PwC Tax. $4k as a senior. I have never received a spot bonus anywhere near this size. I think instead of mid-year salary adjustments, they are giving enhanced spot bonuses to the higher performers. This is in addition to the “ipad or cash” extravaganza from earlier this month.

PwC is really buttering some people up, aren’t they? Either it’s going to be a rough 2011 or the good times are really back. If you’ve received similar news this week, do share or get in touch and we’ll keep things rolling here.

Earlier:
Bonus Watch ‘10: PwC Announces Across the Board Mid-year Bonuses

McGladrey Gives Thanks with News of Bonuses, Extra Holidays and Babysitters

C.E. Andrews and Dave Scudder interrupted McGladrey employees regularly scheduled spreadsheets a short time ago to share all kinds of good news. For starters, Mickey G’s is letting all employees blow off December 23rd and 30th which is pretty nice. Secondly, concierge services will be available starting January 1st, as well as a new arran”http://www.sittercity.com/”>Sittercity for in-house care caregivers.

And yes, there are bonuses.

But not just the year-end bonuses, mind you. No, C to the E and Scuds heard your incessant bellyaching and in addition to the year-end pool they are implementing “a new program to provide real-time recognition and monetary rewards” for those of you that go above and beyond the call of duty.

[caption id="attachment_21691" align="alignright" width="105" caption="Scuds"][/caption]

Our tipster was pleasantly surprised and told us, “McGladrey matches PWC – well not quite but certainly more than expected.”

True, McG isn’t hosting Thanksgiving up in Minnesota Nice country to our knowledge but it seems like a nice little surprise from the punch and cake crowd.

With Thanksgiving just around the corner, we’d like to take time to reflect on the things we are thankful for this year. The last twelve months haven’t been easy, but we have made some important changes in our organization that will create a solid foundation for our future success. We are thankful to have made it through this time of transformation, and we are beginning to see early signs of new growth for our firms, which will be aided by our new brand, growth strategies and the improving economy.

We have only accomplished this because of your tremendous efforts, and we are grateful to lead such a dedicated group of people. Today we’re happy to share some of the things we plan to do to show our thanks to you and to help you experience our people promise.

A gift of time
We’ve asked a lot from you during the last year, and we are truly thankful for the time you’ve invested to make our firms and our clients successful. To show our gratitude, we are giving you two extra paid holidays on December 23 and 30 to relax and spend time with friends and family. If you have conflicting client obligations, you may consult with your work team leader to find alternate dates.

Support for your busy schedule
You have a lot on your plate at work and at home, and we’re pleased to offer two benefits to help offset some of the stress you might be feeling. Starting January 1, all offices will offer concierge services to help you complete a variety of errands and personal to-do’s. We also will provide access to Sittercity, a new client whose business offers a program that connects you to local in-home caregivers for your child, elder, pet or home. Look for more details and information from your regional leaders in the weeks ahead on how you can take advantage of these programs.

Recognition and rewards
We know that you’ve been wondering about the bonus pools for year end, and we want to confirm that we have planned for bonuses this year to reward eligible employees for exemplary performance in support of our firms and our clients. We’ll commit to a baseline funding level in dollars, and the pool will grow based on our year-end performance.

But you’ve told us that year-end rewards alone aren’t enough – you also want to be rewarded throughout the year for your important contributions. In January, we will be introducing a new program to provide real-time recognition and monetary rewards to those of you who go above and beyond to serve clients, develop colleagues and support our strategic objectives. It will be similar, but not identical, to our former SPOT bonus program that many of you may remember. You will be hearing more specific information about both of these plans from your region after the Thanksgiving holiday.

We are truly thankful to have you on our team, and we hope that these things help demonstrate our appreciation. They are just the beginning of more good things that will come as we continue to strengthen our business. We look forward to reconnecting with you via our quarterly webcast on December 16 to discuss the progress we’ve made so far. Watch for an invitation next week.

In the meantime, we hope you have a relaxing holiday and that you enjoy reconnecting to the people and things that are important to you.

Happy Thanksgiving!