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Managers earn compensation through both individual incentives and group incentives.

Managers’ individual incentives are:

Fixed pay: Each round, managers will receive a 75-point fixed payment.

Individual distribution bonus and penalty:

Exceeds Expectations bonus: Each round, managers earn a 15-point bonus for each of their employees who are rated as Exceeds Expectations in the business unit’s finalized ratings.

Below Expectations penalty: Each round, managers earn a 15-point penalty for each of their employees who are rated as Below Expectations in the business unit’s finalized ratings.

Managers’ group incentives are:

Group distribution bonus: Each round, managers can earn a 100-point distribution bonus. Managers receive this bonus if the business unit’s finalized rating distribution matches the suggested distribution. Otherwise, both managers will receive a 0-point distribution bonus for that round.

Recall that the suggested distribution is 10% of employees rated Below Expectations, 80% of employees rated Meets Expectations, and 10% of employees rated Exceeds Expectations.