That can work, if the scheme is (a) fair, and (b) transparent. I.e. something like "this is the formula we apply to the quarterly report to get everyone's bonuses".
Anything else just ends up being a lottery that helps no-one.
> Anything else just ends up being a lottery that helps no-one.
I've seen several occasions when corporate bureaucracy has prevented or delayed raises and promotions because of policy or budget wrangling, but not bonuses or stock grants. Bonuses are a tool for managers to reward and retain their high performers when those other options are not available during that fiscal year.
Oh it's not usually "fair" per se, but it's not like some people would get more than others (if done well), it's more like you don't always control all of the factors that get used to determine your bonus.
Like a QA engineer probably isn't directly tied to overall revenue, but it is a topline number that can be applied to everyone generally, so it can get used (in a general sense, I'm sure there are lots of specifics and nuances here).
Anything else just ends up being a lottery that helps no-one.