Cisco cuts mid-year bonuses
Shareholders have already figured out Cisco's not meeting expectations. Now employees are feeling it, too. In good times, Cisco employees get a mid-year advance on their annual bonus, paid in March. But managers have just informed their charges that they're getting half the usual amount. Cisco bonuses start off ranging from 4 percent to 60 percent of one's annual salary, depending on pay grade, and are determined by a maddeningly abstruse formula:
(Base Salary X Incentive Target Percentage) X
Company Customer Individual
Performance X Satisfaction X Performance
Factor Factor FactorX Pro-ration Factor = Total Annual Incentive
Got that? My question: What HR brainiac designed this system, and how much is his bonus getting cut?