I have been tasked with creating a bonus plan for a
VP Finance bonus plans...
Answers
Since titles and responsibilities are all over the map these days, hopefully this helps...
Some of the can be quantitative, others are qualitative.
Meeting cost containment goals (not necessarily cost reduction - you can only do that once or twice, but containment is ongoing).
Improvements in systems and processes that save money.
Creation and implementation of data sharing schemes with sales and marketing empowering them to obtain the data contained within the
Like everyone else in the company, the main component should be on EBITDA nd growth of that key metric. Add a component for cash growth YOY. Easily measured and ensures bonuses are not paid unless company is growing per plan.
Set the target for total compensation, for example bonus should be 20% of total compensation, and work back from there.
Key Performance Indicators of the position as opposed to financial performance measurements. This prevents the temptation to manage the numbers and adds the independence the rest of the
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