The word “bonus” means “extra” and “plus” and “addition.” For many years, for many JMP employees, bonus has also meant uncertainty. That’s not the case any longer! The new year brought changes to our business – most of which are behind the scenes as we get our systems and processes in place to be our own company – but the change in bonuses is one we can all see. And appreciate.
Here's why: In past years, JMP employees in business operations, marketing, R&D, etc., received bonuses in April that were tied to SAS’ performance and other factors that were invisible to them. There was very little – if anything – JMP employees could do to impact what kind of bonus was received.
Now, with the newly rolled out bonus program, employee bonuses are tied to JMP’s performance and employee success. Since all JMP employees are working to make JMP successful, it’s only right that we all have the opportunity to benefit from that success.
Because quarterly bonuses are new to many of us, we asked Janet Stone of Human Resources and Jason Romanos of Finance to answer these 10 questions.
- Are all JMP employees on the new bonus program?
No, not everyone. Some teams including Sales are on different, defined plans specific to their roles. All other full-time JMP employees are now on the new bonus plan.
- Does where you live in the world impact your bonus plan?
The bonus target % for your particular job is based on the country that you are located in
- Is an individual’s potential amount of bonus based on their salary and/or role within the company?
Yes. Each person is eligible to receive a specific percent of their annual salary.
- Does this quarterly bonus program take the place of the annual March bonus that many of us have become accustomed to?
Yes. You will not receive an annual bonus in 2023 – this program replaces that moving forward.
- What is the determining factor in receiving the bonus?
The primary factor is how close JMP comes to meeting the quarterly Total Software Revenue (TSR) target worldwide. If JMP makes 100% of that goal in the first quarter, employees will also get 100% of their bonuses for that quarter. The percent achieved directly correlates to the percent of bonus paid. It is the same for the second and third quarters.
- What factors influence the fourth quarterly bonus?
Seventy percent of the 4Q bonus is influenced by the JMP quarterly Total Software Revenue (TSR) target achievement worldwide. The other 30% of the bonus will be dependent upon how well the goals published in Workday are met. To ensure that they measure up to their goals, employees should have regular check-in conversations with managers.
- Are employees who start this year eligible to participate in the 2022 quarterly bonus program?
Yes. As long as their hire date is before Oct. 1, 2022.
- Are employees who leave the company eligible to receive any of the payments after they’ve left the company?
No. Employees must be employed on the date of payouts in good standing to receive any of the payments.
- When will we receive the quarterly payouts?
The 1Q bonus payments will likely be made in May. The 2Q payments will be made in August. The 3Q payments will be made in November. And the 4Q payments will be made in February.
- What happens if JMP exceeds its targets?
At a minimum, employees will receive the full payment outlined in the contract. Additional funding is possible, but that is at the discretion of JMP leadership.
Janet thought you might like to see an example calculation, so we've provided the following...
TSR Actual = $30M, TSR Target = $31.5M and Annual Bonus Target % = 10%.
(30/31.5) * 10% = 9.5%
9.5% x 25% (for 1 Quarter) = 2.375% of annual base salary paid for that quarter.
This article covers the high-level explanation of the new program. If you are among the many employees who are now on this quarterly bonus program, you will have received a letter with details from Carol Gretz of JMP Business Operations. Be sure to reference that letter if you have specific questions. Or put your big-picture questions and comments below. And some employees – not those of you in the United States – need to follow confirmation instructions to begin participating in this generous program.
Together we’ll get JMP into the hands of more scientists, engineers and data explorers around the world. Because that’s how we all win as we speed innovation and better decision making with data.
