Extract from IDS Executive Compensation Review 306, August 2006

Top management bonuses surge ahead

For managers and professionals bonus payments are increasingly becoming an important part of the reward package. To provide an insight into bonus scheme trends we have been providing a round-up of the latest awards and developments for the last 10 years. In addition to drawing on data collected from our quarterly management pay award surveys, this article also analyses feedback from over 100 companies about recent changes to their bonus arrangements.

To provide a clear picture of current management bonus trends, the article features tables showing a full breakdown of the level of bonus payments for four management groups: board members, senior managers, middle/junior managers and professional/technical staff. Data for the table aggregates bonuses from a total of 249 bonus schemes paying out over the 12-month period stretching from May 2005 to April 2006, and, as well as bonus criteria, the tables also provide a breakdown of bonus payments by industry.