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Statements

Implementing the Bonus Index in your company requires little change:

Obermatt clients typically use their current compensation consultants and bonus plans.
Companies use their preferred financial metric. The Bonus Index simply replaces the negotiated target with the indexed target for the same metric.
The discretionary bonus component based on personal judgments remains unaffected.

A tconypical Bonus Index implementation requires three steps and less than two months.

Implementation

For ongoing operations, Obermatt provides the indexed results on a quarterly basis so that executives know where they stand throughout the year.

Clients typically use one of three popular implementation designs:

As an input to annual bonus setting: The Swiss retail bank Raiffeisen uses the Bonus Index as input in setting the bonus pool
As a vesting clause for multi-year bonus plans: The Nivea company Beiersdorf uses a multi-year indexed metric threshold for a long-term incentive plan
As a formula for annual cash bonus plans: The Austrian construction supplier Zumtobel pays its cash bonus depending on the annual indexed performance

To see how your bonus plan could look, Obermatt completes a complimentary calculation of your Bonus Index and compares it to your existing plan. Use our contact form set a time for an appointment with our CEO.