Benefits January 30, 2002

2002 Bonuses to be Skimpier

January 30, 2002 (PLANSPONSOR.com) - This year, executives shouldn't expect the fat bonus paychecks that they've become accustomed to, a consulting group survey found.

Reported by

Fred Schneyer

Hewitt Associates’ “Hot Topics in Executive Compensation” study of 202 major US companies shows that bonuses are expected to be:

as small as half target at 37% of companies,
between 1% and 50% of target at 28% of companies, and
on target at 22% of respondents

Further, 13% said they plan no bonuses at all this year.

By comparison, more than half of those responding to Hewitt surveys in the last several years, said bonuses would be more than target.

Researchers said 22% of respondents plan to change the way they measure performance to qualify for a 2002 bonus, many establishing goals that are more consistent with today’s tight business environment.