The Obermatt Bonus Index is fair for executives...
The Bonus Index is accepted by executives because it is:
|Reliable||Based on true operating performance, the Bonus Index helps manage volatility in bonus plans.
Companies can manage volatility in their executive compensation, whether this means smoothing out excessive highs and lows in some plans or bringing more movement and motivation in others. Bonus plans become more robust, reducing the need for plan re-designs and ad hoc adjustments.
|Objective||The Bonus Index is de-coupled from biased budgets, so you can minimize lengthy bonus negotiations.
Bonus plans based on budgets can be outdated quickly in case of external shocks or unexpected economic cycles. Additionally, they require lengthy target negotiations. With the Bonus Index, bonuses are independent of target levels and thus cycle-proof which results in bonus plans that require fewer re-designs and ad hoc adjustments.
|Deserved||Outperformers deserve high bonuses also during downturns, so you can end the debate around bonuses.
Fairer than traditional bonus plans, executives who perform better than the competition receive high bonuses, even in a recession. This increases retention for high performing executive teams in those times where retention is the most important.
... and fair for shareholders
The Bonus Index enjoys broad acceptance with shareholders because it is:
|Sustainable||The Bonus Index rewards sustainable management practices.
The Obermatt Bonus Index recommends bonus levels based on the number of peers a company outperforms - the only durable criteria for sustainability.
|Aligned||The better the result, the higher the bonus.
The Obermatt Bonus Index compensates only operating performance and not the influence of economic cycles. Thus, it motivates for improving operating results.
|Independent||The Bonus Index is provided according to Obermatt's Declaration of Independence.
The Obermatt Bonus Index is fairer than negotiated bonus targets because it is objectively and transparently defined by a neutral third party.
You would like to hear this from our customers?
We will arrange personal contacts with people who have been satisfied with the bonus index system for years. From compensation chief (comp & ben) to the chairman - we have customers that are available to provide a reference.