Incentive Bonus Policy
Lyquix success is tied to the performance of its employees. For that reason, Lyquix has established this employee performance evaluation and incentive bonus policy to reward employee's individual contributions and make them participate in the overall company success.
Only for full-time employees
The total bonus is the sum of an Individual Performance Bonus and a Company Performance Bonus. The Individual Performance Bonus is calculated solely on the employee's performance. The Company Performance Bonus is calculated as a percentage of the Individual Performance Bonus.
Individual Bonus Tier
Each employee will be assigned an individual bonus tier based on their role and responsibilities.
Company Bonus Tier
The company performance goals will be set annually. The company performance is measured in total company sales (accrual basis), minus any pass-through or 3rd-party costs (e.g. hosting, domains, software licenses, etc.). The target Company Bonus Tier is 20% but can be as high as 50%. The calculation of the Company Bonus Tier will be based on the following slide:
| Performance | 80% | • • • | 100% | • • • | 150% |
|---|---|---|---|---|---|
| Bonus Tier | 0% | • • • | 20% | • • • | 50% |
Eligibility
Only full-time employees, that have worked at least 6 months in the calendar year, and that were employed by December 31st, are eligible for the performance incentive bonus.
Payout
The incentive bonus is calculated as the sum of the individual and company components.
The individual bonus component is calculated as the product of the individual performance score, the individual bonus tier, and the employee's base salary:
The company bonus component is calculated as the product of the individual bonus component and the company bonus tier:
Note that the payout is based only on the amount of base salary that the employee was paid during the year. This excludes any other benefits and bonuses even if they are paid cash to the employee during the year. Compensation that is paid to the employee while a contractor is excluded from the bonus calculation.
Example:
- Base Salary Paid: $50,000
- Individual Bonus Tier: 7.5%
- Individual Score: 105%
- Individual Bonus: 105% x 7.5% x $50,000 = $3,938
- Company Bonus Tier: 20%
- Company Bonus: $3,938 x 20% = $788
- Total Incentive Bonus = $3,938 + $788 = $4,726
The incentive bonus is paid once a year, no later than March 15.