When are bonuses given out?

• Bonuses are given out after being calculated at the end of each quarter
  • March 31, June 30, September 30, December 31

General Info

• Your Final bonus is the sum of two different types of bonuses: Calculated & Additional
  • Calculated bonuses are calculated using the Calculated Bonuses Formula
    • In the event that a quarter results in negative profits, the negative profit amount will carry over to subsequent quarters (in the context of Calculated bonus calculations)
      • e.g. If each quarter generates a profit of 500,000, and Q1 records -600,000 profit, Q2 will record -100,000 profit, Q3 will record 400,000 profit, and Q4 will record 500,000 profit
  • Additional bonuses are discretionary
    • Whether an Additional bonus is paid to employee, and the amount of any bonus, is in the complete and sole discretion of the company. Because the Additional bonus is in the company's sole discretion, an employee is not entitled to receive an Additional bonus at any point during employment or at termination. Additional bonuses are not granted based on an employee's performance
• If an employee departs mid-quarter, they will be receive a prorated amount of their Final bonus, based on how long they were employed during the quarter
  • e.g. If an employee leaves 1/3rd of the way into the quarter, they would be paid 33.33% of their Final bonus at the end of the quarter
• The profit margin of the quarter after bonuses are given out at minimum must be 25%. If the profit margin is lower, all bonuses will be multiplied by a multiplier calculated using the Profit Margin Bonus Multiplier Formula to meet the minimum profit margin

  • e.g. If the minimum profit margin is 25%, and profits before bonuses for a quarter is 1,000,000, and bonuses total 800,000, every bonus would be multiplied by 0.9375 in order for the total amount of bonuses to equal 750,000

  • Profit Margin Bonus Multiplier Formula

    <aside>

    Calculation Constants

    minimum_profit_percentage

    Calculation Variables

    revenue

    profit_before_bonuses

    total_bonuses

    minimum_profit = revenue * (minimum_profit_percentage / 100)

    Calculated Variables

    maximum_total_bonuses = profit_before_bonuses - minimum_profit

    bonus_multiplier = maximum_total_bonuses / total_bonuses

    • Maximum value is 1 </aside>

Past & Current Bonuses

• You can view past employee bonus amounts and details, along with the current quarter’s employee details, here: https://drive.google.com/drive/folders/1uiVrpXmqtwebuiKtPB-r96PNAXCUcqN7?usp=drive_link
  • It is recommended to make a copy of a sheet to run your own numbers through them
    • You can do this by opening a sheet and clicking File (on the top left) > Make a Copy

Calculated Bonuses Formula

<aside>

Calculation Constants

profit_weight = 0.8

revenue_weight = 0.1

dau_weight = 0.1

bonuses_per_year = 4

Quartery KPIs Variables

new_profit

new_revenue

new_dau

Employee Variables

yearly_cost

• Yearly salary + Annualized recurring cost of benefits

yearly_cost_factor

baseline_profit

baseline_revenue

baseline_dau

Calculated Employee Variables

profit_increase_factor = (new_profit / baseline_profit) - 1

revenue_increase_factor = (new_revenue / baseline_revenue) - 1

dau_increase_factor = (new_dau / baseline_dau) - 1

kpi_increase_factor = (profit_increase_factor * profit_weight) + (revenue_increase_factor * revenue_weight) + (dau_increase_factor * dau_weight)

calculated_bonus = (yearly_cost * yearly_cost_factor * kpi_increase_factor) / bonuses_per_year

• Minimum value is 0 </aside>

How are KPI baselines determined?

• KPI baselines are generally assigned once and remain unchanged

• The KPIs of the previous 8 weeks of an employee’s join date skipping January, June, July, December are generally used to determine their KPI baselines

  • e.g. If an employee joins on March 14, 2025, the average KPIs of November 8 - November 29, 2024 and February 7 - March 14, 2025 would generally be used to determine their KPI baselines

• KPI baselines may be adjusted to account for any unnatural volatility

  • e.g. Major game updates/events, game downtime, etc.

• KPI baselines may be adjusted at the company’s sole discretion