18May2024
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Quarterly vs Annual Bonus: A Relationship Manager’s Perspective

Disclaimer: The views and opinions expressed in the vapa Swiss independent wealth management blog posts featured on this page are solely my own and do not necessarily represent the views of any institutions or organisations I may be associated with. These posts are intended to share personal insights and perspectives and should not be interpreted as official statements or positions of any affiliated entities.

As a Relationship Manager, is it more advantageous to receive your financial rewards in the form of bonuses on a quarterly or annual basis?

1️⃣ Quarterly Payouts:
🚀 Consistent Motivation: Being compensated four times a year for your achievements can be enriching. It keeps you motivated, and successes aren’t easily forgotten.
🛑 No “Last-Minute” Stress: This approach minimizes the pressure of booking an “asset inflow” right before a year-end deadline.
💼 Tax Considerations: This method demands a certain level of self-discipline for Swiss nationals taxable in Switzerland. Setting aside a portion of the bonus for the upcoming tax bill is crucial.

2️⃣ Annual Payouts:
💰 Saving Effect: This approach might lead to more disciplined spending, as the base salary might not support the same lifestyle as the total compensation.
🎉 Big Reward: Receiving a substantial sum once a year can be psychologically gratifying and used for larger purchases or investments.
🔒 Trapped: It only makes sense to change employers once a year. No successful Relationship Manager switches jobs just before the big payout.

In conclusion, the best choice depends on individual preferences and life situations. While some prefer the consistent reward and cash flow from quarterly payouts, others value the discipline and the “Big Bang” effect of an annual bonus.

How does your company handle this? Which method do you personally prefer?

Source: LinkedIn

Rating: 5.00/5. From 3 votes.
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Quarterly vs Annual Bonus Payments for Relationship Manager

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