It’s because companies know the most popular time to leave is right after receiving your bonus, so they extend it out and save some bonus money and/or force people to stay on longer.
My company’s bonuses are not guaranteed, though would be a riot if ever $0.
I have ranged from 9% to 40% (did a special job over the New Years weekend). Last year 30%+, was a great profit year.
I avoided consulting as I wanted a regular, consistent salary. In my early days I wouldn’t want a lower paycheck and try to raise my family. I have always gotten a sign on, surprised that a bonus centric company wouldn’t offer one
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You could say “average salary increase” but then that has to translate to a bonus. I’m skipping two steps - what’s the average salary increase, what percentage of that pays out in bonus - and combining it into one.
Now, if you want to consider salary (current vs. prospective) in the calculation of S up above, then I agree - you need to know all those things. Hence, my comment that was doing a very crude actuarial on this and that to fully answer the question, we needed more information.
I negotiated a non pro rated bonus for NewCompany before when switching jobs late in the year.
I was leaving for a substanial salary increase, and OldCompany’s bonuses sucked. I lived in a place where it was illegal for them to ask me my current compensation, so they probably didn’t realize just how underpaid I had been. I didn’t want to have to disclose my current target/actual bonus to negotiate a sign on, since OldCompany bonuses were so low, so I negotiated not pro rating at NewCompany instead of a sign on. (Though even the pro rated one would have been much larger than OldCompany bonus.) They stuck to their word and did not pro rate the bonus come March, even only I had only worked at the company a few months of the previous year.
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You can also just lie about what you’re currently being paid if you think it’ll help you negotiate effectively. It’s not like they can audit the number.
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Been there done that, worked like a charm
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