RE: Bonus instead of raise -- why?

Subject: RE: Bonus instead of raise -- why?
From: bryan -dot- westbrook -at- amd -dot- com
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Mon, 1 Oct 2001 14:46:32 -0500

It's simple math. Say your annual pay is $100 (I know it's not, but let's
just keep the numbers simple). If you get a 5% bonus every year, you will
make $105 this year and $105 next year, etc. If you get a 5% raise, you
will get $100 this year, $105 next year, and $110.25 the year after, about
115.76 the fourth year, etc. Raises are cumulative, and bonuses are not.
If you have doubts about the companies long-term solvency (or your job
security), a bonus would be preferable because the greater payoff would be
in the future.

-----Original Message-----
From: anonfwd -at- raycomm -dot- com [mailto:anonfwd -at- raycomm -dot- com]
Sent: Monday, October 01, 2001 2:42 PM
Subject: FWD: Bonus instead of raise -- why?

annual review cycle is coming around. I have just been informed that --
all across the company -- raises will be handled differently this year.
Instead of getting, say, a 5% raise, we will get the 5% in one lump sum
with the first pay period at which the raise would have been effective.

Anyone know why they might be doing this? Is it to hold the line on
future increases? Are they betting that in this job market, people won't
just pocket the lump sum and leave?


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