Performance review question

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Again, the annual budget for bonuses (merit increases) is based on a bell curve assuming S/S. It’s a financial exercise using a standard Excel spreadsheet. The answer is the budgeted amount which cannot normally be exceeded. The rest is about balancing the performance scores to balance the bonuses to the total. For every E there must be a M essentially but it depends on the base salary. One M for a higher base salary could enable two Es if their bases are lower. Used to have more flexibility but S/S is now required to deliver 100% bonus. That was not always the case. In the end the ultimate ratings (who receives M, S, E) are political. Many stories regarding managers who receive a call late in the process to assign some unlucky person a M, who really earned a S and was initially assigned a S. Bottom line is the numbers have to balance to the budgeted total per unit. Higher level people (40,41, 50, 51, 53) automatically require more of the pie for a given rating due to their higher base salary ($300k - $500k plus) and higher bonus target (25% - 40% plus).

US:
PG40-25% Bonus Target
PG41-30% Bonus Target
PG50-35% Bonus Target
PG51-40% Bonus Target
PG52-50% Bonus Target

VP3 (PG-52) with a base of $500,000 would have a S/S bonus target of $250,000 (50% of $500,000) and a 3% merit increase of $15,000 3% of $500,000) assuming a 100 bonus multiplier and no base salary location adjustment (NY, CA, etc)

Climbing the corporate ladder can be very rewarding at J&J. Once people make Director or higher they want to protect themselves since someone else is always gunning for their job. Also giving low ratings to direct reports frees up more funds for their own rating to be increased. Figure that. Anyone who assigns a low rating should also receive a low rating for allowing that person to fail but that rarely happens at J&J. The HOW is always the wildcard since 2010. Very subjective.
 






Good post on ”Targets” but ultimately this is about relationships with leadership, you are either in the click or not! Then comes the question on how much your leader depends on you which also still includes the DEI targets they need to meet…. Unless someone is truly a low performer, performance comes last, especially if you are easily replaceable and don’t fit DEI.
 






anonymous said:
Good post on ”Targets” but ultimately this is about relationships with leadership, you are either in the click or not! Then comes the question on how much your leader depends on you which also still includes the DEI targets they need to meet…. Unless someone is truly a low performer, performance comes last, especially if you are easily replaceable and don’t fit DEI.
Click to expand...
Word
 






anonymous said:
Good post on ”Targets” but ultimately this is about relationships with leadership, you are either in the click or not! Then comes the question on how much your leader depends on you which also still includes the DEI targets they need to meet…. Unless someone is truly a low performer, performance comes last, especially if you are easily replaceable and don’t fit DEI.
Click to expand...
Truth! If you are DEI you are safe. Can be dumber than a rock but are the right color.
 


















anonymous said:
Again, the annual budget for bonuses (merit increases) is based on a bell curve assuming S/S. It’s a financial exercise using a standard Excel spreadsheet. The answer is the budgeted amount which cannot normally be exceeded. The rest is about balancing the performance scores to balance the bonuses to the total. For every E there must be a M essentially but it depends on the base salary. One M for a higher base salary could enable two Es if their bases are lower. Used to have more flexibility but S/S is now required to deliver 100% bonus. That was not always the case. In the end the ultimate ratings (who receives M, S, E) are political. Many stories regarding managers who receive a call late in the process to assign some unlucky person a M, who really earned a S and was initially assigned a S. Bottom line is the numbers have to balance to the budgeted total per unit. Higher level people (40,41, 50, 51, 53) automatically require more of the pie for a given rating due to their higher base salary ($300k - $500k plus) and higher bonus target (25% - 40% plus).

US:
PG40-25% Bonus Target
PG41-30% Bonus Target
PG50-35% Bonus Target
PG51-40% Bonus Target
PG52-50% Bonus Target

VP3 (PG-52) with a base of $500,000 would have a S/S bonus target of $250,000 (50% of $500,000) and a 3% merit increase of $15,000 3% of $500,000) assuming a 100 bonus multiplier and no base salary location adjustment (NY, CA, etc)

Climbing the corporate ladder can be very rewarding at J&J. Once people make Director or higher they want to protect themselves since someone else is always gunning for their job. Also giving low ratings to direct reports frees up more funds for their own rating to be increased. Figure that. Anyone who assigns a low rating should also receive a low rating for allowing that person to fail but that rarely happens at J&J. The HOW is always the wildcard since 2010. Very subjective.
Click to expand...
Great insight. Climbing the corporate ladder is very challenging at JnJ. Promotions are highly political. It’s hard for truly deserving people to get ahead. Promotions are based more on one’s connections than experience/fit for the role.

What’s the highest merit increase you expect this year for strong performers?
 






anonymous said:
Great insight. Climbing the corporate ladder is very challenging at JnJ. Promotions are highly political. It’s hard for truly deserving people to get ahead. Promotions are based more on one’s connections than experience/fit for the role.

What’s the highest merit increase you expect this year for strong performers?
Click to expand...
S/S - 4.5%
 






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