[peggyv]

Hi all,

I am currently the director of accounting /CFO ( don’t really love that title cause it’s not a huge company but anyways). We do about $5M in annual revenue. I am also the head of operations – company has about 20 employees looking to have 25-30 by end of 2020.

Was wondering how everyone’s bonus structure is? Percentage of salary? Percentage of net profit? Going into negotiation talks this week with the president of the company and would like to have some information to go in with.

Also, my salary is currently $92k/year + 10% bonus. Work in Fort Lauderdale, FL and I have about 7 years at this place ( I’ve basically been there from ground up and it’s experiencing tremendous growth). I’m also 30 and have my MACC and CPA for about 4-5 years now.

Wondering if that sounds fair? Sorry for the million questions but I feel I can get some good honest answers here.

Thanks so much!

BEC - 80
FAR - 77
AUD - 76
REG - 75

DONE, DONE, DONE!!!

[jeff]

I would try to find a way to tie the bonus to the health of the company, so some formula involving increase in net profit (if your books are open).

I would also try to show your value to the company (“due to things that I've done and systems that I've put in place, we've saved $350,000 over the last year, resulting in that increase to our bottom line, so I am asking for 10% of that increase”)

etc.

Linking it to the value they've received vs just “I should get a bonus because I'm here” might get you more.

[bigstakk]

I would try to get your pay to match up to the title. In my company I am second to the CFO and he makes over $300k and as much as $500k in good years since he has equity. I know cost of living is a factor so it’s not comparable given that I live in LA. My base is substantially higher but part of it could be where I live, but my bonus is at 25% and I think that’s something you need to bump up significantly. 10% bonus is what I got as an entry level accountant. It bumped up to 15% when I became a Senior Accountant and 20% at Assistant Controller. Now at VP, Corporate Controller it’s at 25%, but I’ve seen bonuses as high as 35% for similar roles. I would say 25% would be fair enough. My bonus is in part tied to overall company performance though, so part of it is out of my hands although I’ve typically gotten at or around target bonus historically. I have a MAcc and no CPA (yet) for reference. With a CPA and at 12yrs experience I am looking to leverage up to a CFO title and market pays $200-225k base and 25-40% bonus and usually some equity around here. I would get your base closer to $120-150k range and bonus in the 20-25% range to start. You may need to leave your job to get market rates though, since you are so far off from those numbers. But again I live in a major market with high state taxes so I would check job postings in your area to confirm what should be the standard going rate where you live.

[peggyv]

Thank you for your responses! Really helps. @bigstakk I agree leaving would be the best way for me to get market price, actually tried that a few years ago and that got me about a $20k raise. Really don’t want to do the whole I’m leaving thing and then get another raise situation. I’ve been mopping and tucking I started at $36k out of college so I’ve come a long way but I started so low that was my issue. I do love working here too, they were great during my maternity leave and I have lots of flexibility so I’m always ok with taking a partial cut in order to maintain the flexibility/seniority.

I am going to shoot for 25%. We are privately owned and I can’t see equity ever happening a lot of companies offset with stock options but that’s not the case here. I do believe CA has a higher cost of living so I can see your base being higher but id say the going rate for someone my age my expertise is prob closer to the 110-120 range. So I’m off but not incredibly and that’s why I’m trying to offset it with a bonus.

Really appreciate your help!

BEC - 80
FAR - 77
AUD - 76
REG - 75

DONE, DONE, DONE!!!

[Author]

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