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Resrve Part of the total Compensation Budget

Received Response
edited Apr 9, 2021 4:27PM in Compensation 13 comments


Business wants to reserve or hold part of the total budget which is getting released as % of eligible salary


Here is the scenario:

Comp Admin normally set overall budget as one amount (say 3.5%) but they want to publish a smaller amount to all individuals under the CEO (say 2.3%); and put the extra amount in the reserve bucket.  Once all the leaders reporting to the CEO submit their allocations, we release the budget so at his level we see the true amount overall.  Only the VPs(DR to CEO) and above know what the discretionary amount (the difference between the 3.5% and the 2.3%) is and the extra amount they are allowed to see.

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