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Compensation
Bonus / Commission Plan Template
A template for defining performance-based bonus or commission structures with metrics, weights, targets, payout calculations, eligibility, and payment schedules.
BONUS / COMMISSION PLAN
Employee: [Name] | Role: [Title]
Department: [Department] | Period: [Start] to [End]
1. PLAN TYPE
☐ Annual Bonus ☐ Quarterly Commission ☐ Sales Incentive
☐ Project Completion ☐ Retention ☐ Other: [Specify]
2. TARGET BONUS
[Amount] or [Percentage]% of annual base salary
3. PERFORMANCE METRICS
Metric | Weight | Target | Actual | Achieved % | Payout %
Company Revenue | [%] | [Target] | [Actual] | [%] | [%]
Dept Goal | [%] | [Target] | [Actual] | [%] | [%]
KPI 1 | [%] | [Target] | [Actual] | [%] | [%]
KPI 2 | [%] | [Target] | [Actual] | [%] | [%]
Total | 100% | | | [Weighted %] | [Payout %]
4. PAYOUT
Target Bonus × Achievement % × Payout Factor = Payout
[Amount] × [%] × [Factor] = [Payout]
For commission: Revenue [Amount] × Rate [%] = Commission [Amount]
5. ELIGIBILITY
• Actively employed on payout date.
• Resigned/notice/terminated for cause = ineligible.
• Prorated for mid-period hires/promotions.
• Long-term leave may be prorated.
6. PAYOUT
Frequency: [Annual/Quarterly/Monthly]
Timing: [Month] after period end.
Payment via [payroll / separate payment].
7. ADJUSTMENTS
Company may adjust based on overall performance, market conditions, or individual circumstances at management discretion.
APPROVALS
HR: [Name] | Manager: [Name] | Finance: [Name] | Executive: [Name]
Employee Acknowledgment: I have read and understood this plan.
Signature: _______________________ Date: _______________________