Ah ... "bonus envy" ... such an uplifting exercise.
It's foolish to approach this topic as though it is some abstract entitlement, wholly divorced from the underlying economics of the profession. Bonuses reflect the fundamental profitability of any firm. Profitability reflects income levels, expense structure, and productivity. If you want a bonus, make a meaningful improvement in those aspects of the business.
By the way, I have personal knowledge of a reasonably well known design firm that has, in many years, issued holiday bonuses roughly equal to annual salary. It's something of a sweatshop, but they do reward time and effort.
FYI to Steven and others- we were profitable. We even had our profitability & numbers published nationally.
I can't answer questions about "cash on hand"- I'm not in that sector of the "know".
have you been profitable...or just busy? there is an economic rhyme/reason behind bonuses that i didn't fully understand until i was part of the giving side of them. it has a lot to do with cash-on-hand.
I would like to reinforce what Steven writes above. As firms begin to recover from these extraordinary bad times, managing cashflow becomes a huge problem.
Often, as work begins anew, firms must staff up, or pay extra OT pay, in order to generate new billings. Naturally, these are expenses that must be paid immediately.
However, if the firm's clients also have been experiencing slow times, then those clients are likely to be slow payers. So, while a design firm might be busy and generating increased billings, that doesn't necessarily result in increased cash flow until those invoices start geting paid.
If this is just a timing issue, you easily might ask "why doesn't the firm just go out and borrow some money to bridge that gap?" Ordinarily, that would seem a reasonable question -- that is, after all, what a line-of-credit is designed to handle.
However, I know many firms that have lost their line-of-credit, or been forced to accept lower LOC limits, during the past few years because of their weakened financial condition. And, as anybody who reads the paper understands, banks aren't eager to lend money these days, especially to poor credit risks.
This all will work out over time -- but, it is going to take some time for the increased cash outflow to be covered by increased cash inflow. Then, and only then, will more firms be in a position to restore pay cuts and start paying bonuses with any regularity.
i was watching christmas vacation... he was going to use his chistmas bonus to put in an inground pool... and if there was enough left over he was going to fly his whole family down to enjoy it..
that must be like 10k... do chistmas bonuses like that really exist?!?!
Good post quizz. It also has to do with the profit margins on projects these days which are realistically slim to none at most firms. We have been crazy busy for a little over a year but with low fee's being the norm along with what you said (hiring, marketing, etc.) there really isnt any disposable cash to get off the books at year end.
We did get a very small bonus (Arch firm). Although it wasnt large enough to be excited about I think it was done just as a way of saying to the employees "hang in there, we are on the mend"....it helped boost office morale for the afternoon at least.
completely echo quizz and steven on the owner's side. we decided to just get everyone an ipad in lieu of a bonus, for a few reasons, but it was one of those things where people didn't have them and it's one of those things where the intangible payback was far greater than the amount expended.
My christmas bonus just knocked on the door and left and envelope with a $100.00 gift card. Actually it is a from a client I did a project for nine years ago. Every Christmas Eve there is always a knock on the front door and a gift from my client. He was just starting out his business when I worked for him. He was from an Eastern European country, and his English was a bit rough. I walked him thru the whole American world of bureacrats. Planning an Zoning, Health Permits, and Building Permits. Lined him out with some trust worthy contactors and well he has never forgotten it.
Besides the cash flow issues pointed out by a few here, there is also not much of an incentive to give out monetary rewards. Talent retention is just not an issue these days.
A bonus doesn't necessarily have to be in money form. If there is no money to be given out, then these busy offices could find other ways of letting their employees feel appreciated.
Kudos to outed for the iPad gimmick. I'm sure it put a smile on most employees' faces, and made it for a memorable gift.
Ikea recently gave a bicycle to every single person in their workforce. Assembly required, of course.
Talent retention is a problem in some markets, like Chicago, but the talent that has options and can job hop has Revit skills and experience. It is not 2006 level of job hopping but retention is an issue and it is driving business decisions such as relocating closer to the city center, flex hours, and other incentives including bonuses. I think bonuses are one small component of worker retention but not as common as other less expensive perks.
rusty: "Talent retention is just not an issue these days."
While this may be the immediate circumstance, wise firms are looking ahead to better times and the likely prospect that a high proportion of individuals in most firms will be open to making a move once positions start opening up.
While cash issues make meaningful bonuses difficult for many firms right now, those firms that focus on employee engagement, gratitude and professional respect - the very things they should focus on in all economic environments - will be reasonably well positioned when 'musical chairs' begins.
Outed has the right kind of ideas - i.e. do what you can financially and let your staff know you are grateful for their contributions.
Talent retention is very much an issue for us. We have worked very hard to keep ALL of these folks in jobs. No layoffs. (Not an easy accomplishment, but a commitment we made.)
We just try to let everybody know what's up, what challenges we have.
When things are rosy again, nothing says we have to wait 'til Christmas to let them know they're appreciated.
that must be like 10k... do chistmas bonuses like that really exist?!?!
I was shocked to find out recently that a company I have done work for typically gives out bonuses that are approximately one full year's salary. (And they likely will this year as well.) Then when I began talking about this with friends & family I found out this practice is not out of the ordinary. The world is very different outside the walls of architecture. It's been fascinating to see what kind of compensation the rest of the american white collar workforce simply expects as their regular due. If I showed some of these people this thread they would be equally shocked, and completely dumbfounded at our profession.
Even blue collar workers get bonuses. I know a butcher and a factory worker that got one extra month salary. Architecture is probably the only profession that doesn't give bonuses even in good times. That is the reason why I don;t consider architecture as a real profession, because it doesn't have any elements that resembles a real job. Try to find a job that pays bad, long hours, no bonus, cheap ugly workspace, oudated hardware and software etc. I'll bet that many starchitects firms are working on Christmas day.
My car broke down a few days ago. A bonus would have been very welcome. Now i got to get a loan, since an architect salary doesn't allow you to save any money.
Ah ... "bonus envy" ... such an uplifting exercise.
It's foolish to approach this topic as though it is some abstract entitlement, wholly divorced from the underlying economics of the profession. Bonuses reflect the fundamental profitability of any firm. Profitability reflects income levels, expense structure, and productivity. If you want a bonus, make a meaningful improvement in those aspects of the business.
By the way, I have personal knowledge of a reasonably well known design firm that has, in many years, issued holiday bonuses roughly equal to annual salary. It's something of a sweatshop, but they do reward time and effort.
i got 250, plus a lunch. what i gave back; a bottle of single malt scotch and yesterday i bought a large pizza with everything. oh, btw, neither of those items i actually can enjoy anymore, so i ate/drank none.
people at my office got bonuses. i didn't because i just started (happy to have a paycheck!) so i don't know how big they were. however, i did receive what i think is the letter that accompanied everyone else's check.
my christmas err holiday surprise was winning an ipad from a greenbuild expo booth.
quiz "wise firms are looking ahead to better times"
Agreed. On the flip side, employees are just as likely to have unrealistic expectations from their employers. There is nothing you can do for someone who is willing to play a victim. I can be an emotionally draining profession. Small gestures of appreciation can really go a long way. Offer (hopefully) valid for longer than the holiday season...
Steven: "We just try to let everybody know what's up"
That' a big one. I think I was at my most content when I had access to full financial disclosure of the project finances. Knowing when we lost money on a project is just as useful as knowing when we broke even/made a hefty profit. It keeps the expectations realistic.
are bonuses really so ubiquitous in ohter fields? i always felt that inequity is part of commerce, especially in north american. heck, i remember when my mother was finally given 20 years of back pay after lawyers decided her company had underpaid all the women in the company for decades (men earned much more than women for the same job). for her that was a bonus.
anyway. up until i started own office i got a bonus of about 4 months annual salary split over two payments a year. was also paid overtime and extra for weekends. i made about 3 or 4 times what my friends made doing reglar office jobs. i don't think my experience was particularly unique.
After I learned what I mentioned above, I actually talked about this with some friends of mine (all non-arch) and learned that everyone was expecting a bonus this year (and every year).
not sure this article applies as directly to the topic at hand (or maybe architecture as a whole), but it's a thoughtful look at pay trends as it pertains to the notion of 'stars' vs. average workers. most interestingly, it has a kind of 'finite resources' assumption a lot of economists don't really believe exists (meaning, theoretically, that the supply of 'wealth' that can be created isn't a zero sum game). http://www.nytimes.com/2010/12/26/business/26excerpt.html?src=me&ref=homepage
but that's not the same thing as an annual expectation, is it? some folks seem to feel entitled to a bonus - as if they are victims of some inequity because they aren't receiving a bonus despite firms' bleak balance sheets over the past couple of years.
is fair compensation not enough incentive to do your best work? i mean, a company could always lower their official compensation in order to maintain a retainage to award performance, i guess...
would it be better to have give a salary of $45k and have employees brag about a $5k bonus, or better to just have the official salary be $50k?
steven - apparently, wall street's take is the former:
"In some ways, a zero bonus should not come as a surprise to many bankers, Nelson D. Schwartz and Susanne Craig report in The New York Times. As a result of the 2008 financial crisis, Wall Street firms like Goldman Sachs and banks like Citigroup raised base pay substantially in 2009 and 2010. They were seeking to placate regulators who had argued that bonuses based on performance encouraged excessive risk.
At Goldman, for instance, the base salary for managing directors rose to $500,000 from $300,000, while at Morgan Stanley and Credit Suisse it jumped to $400,000 from $200,000.
Even though employees will receive roughly the same amount of money, the psychological blow of not getting a bonus is substantial, especially in a Wall Street culture that has long equated success and prestige with bonus size. So there are sure to be plenty of long faces on employees across the financial sector who have come to expect a bonus on top of their base pay. Wall Streeters typically find out what their bonuses will be in January, with the payout coming in February.
One executive, whose firm prohibited discussing the topic with the news media, said the bump in base salaries had confused people, even though their overall compensation was the same. “People expect a big bonus,” this person said. “It is as if they don’t even see their base doubled last year.”
Dealing with the Zeros can be complicated. “It’s a real headache,” said another senior banker, who asked not to be identified because the topic is so volatile at his company. There has been so much grousing that in some cases, he said, “we’ll throw $20,000 or $25,000 at each of the Zeros so they’re not discouraged.”
After reading through this entire thread I now know that architects are not only in denial of the current state of the architecture field but delusional about other fields and professions.
Things are not good in the architecture profession. They are better but I talked to one gentleman I know who has a masters from an Ivy League university and he made $15k from being an architect in 2010. How can any of us survive on this kind of money?
My friend's Christmas bonus is bigger than this. (She works for a major consulting firm.)
Fees are being bid down because architects will slit their throat for some cash flow. We have to stop this somehow.
Also,we need to create more value in what we do or we will be extinct very soon.
I am looking forward to a more productive and lucrative 2011!
“It is as if they don’t even see their base doubled last year.”
This doesn't surprise me - I have had multiple conversations with people at this one place I've worked at wherein they let drop that they bank their entire paycheck directly into savings every year, and live off either investment income or whatever a spouse makes. The amounts involved are so large that they literally don't notice any changes.
I know a consultant in her mid-20s who was asking about whether her last few paychecks had shown up. We searched for them. After much hunting it turned out that direct deposit had kicked in eight paychecks earlier and she hadn't noticed. I literally cannot imagine a single person in the field of architecture being able to withstand that for more than two paychecks max. Gives some insight...
And Steven - a) when I used the word "expects" in my previous post I meant it literally - as in, they had had their year-end reviews and each had been told they were receiving a bonus. They were suprised to learn this wasn't typical in arch.
in any case, b) I think when something happens year after year after year without fail - even when the rest of the economy appears to be suffering - you'd be silly to not "expect" a bonus.
To answer the initial question - yes, we awarded bonuses this year (arch only firm)-we were fortunate/lucky and had a good year (better than last year). I guess most people who read this thread and had received bonuses kept away from answering because of the vast amount of our peers who were not as fortunate (either in maintaining employment or in compensation struggles) - I assume no one wants to appear to be bragging when so many are straining to survive - the only reason I am responding is to hopefully show that there are bright spots out there in our profession and that things are looking better.
it is normal to get a bonus in japan. loans used to be arranged to accommodate the windfall twice annually. mortgages on houses would be made so that the base rate was xx a month except for twice a year at bonus time when the payment would be XX times 2 or 3. even brochures for condos would say things like "financing at only $1500/month plus $3600 bonus payment twice a year". bonuses went straight to the lenders.
that doesn't happen anymore. bonuses dropped in the lost decade and now people need them to live on, not just pay off loans. so the practice is disappearing.
funny enough japan is entering its third lost decade this year. hurray.
times change.
btw, i have never got a bonus as a university professor, while our clients tend to get 6 figure bonuses. finance world is amazing place.
$400 this year. Used to get about $1,000. Boss will spend $2,000 on a dinner (big wine drinker) without blinking. I am considering burying a $5,000 - $10,000 error/omission into an upcoming project, for S#&TS and giggles.
FYI to Steven and others- we were profitable. We even had our profitability & numbers published nationally.
I can't answer questions about "cash on hand"- I'm not in that sector of the "know".
Definitely. Bonuses that large do exist. In regards to smaller blue collar businesses- workers will actually choose to be employed specifically by those businesses that give year-end bonuses. Ex husband is a blue collar worker and gets approx $3000 at Xmas on top of giveaways of TV's, trips etc. Every employee in the building gets this (hundreds of staff members). No one ever leaves lol.
You revived a 7 year old thread to brag about a 3k bonus and a free tv?
Dec 18, 17 11:38 am ·
·
shellarchitect
+ trips
Dec 18, 17 12:52 pm ·
·
sameolddoctor
LOL
Dec 18, 17 3:45 pm ·
·
Medusa
I read this whole thread intently, until I got to a comment that said "looking forward to a more productive 2011." Made me question my whole space-time continuum for a few seconds.
I got a 20k bonus this year... I was completely in shock.. I'm 29 and have been with the same firm for 6 years, Only 2 of those years have been full time.
that's insane. the state here decided they screwed up some paperwork so they actually took 27k away from our firm. so... another year with no bonus. in 10 years we have only had one year with a bonus. in the other companies during previous 10 years before that, i only got bonuses 2 years. A/E firm here.
Dec 18, 17 1:14 pm ·
·
JLC-1
yeah, that's your downpayment to buy out the firm, you'll know more at the xmas party.
The real question would be did anyone receive a raise....it seems like all of the big firms are giving the profits only to upper management ...I would say financial harassment is so big no one wants to admit it
Dec 18, 17 8:39 pm ·
·
msparchitect
It depends on where you are geographically. Coastal cities are hot as sh*t right now. If you want more money, its easy to get a job or switch jobs for more money. It's also easy to hint that you're leaving to an employer who appreciates you to lobby for more funds.
Dec 20, 17 11:28 am ·
·
3tk
well, there does seem to be some nervousness creeping in, so we'll see how long this lasts.
Did anyone get a Christmas bonus?
As the above title asks... Did you get a Christmas bonus? And please say if you work at an A/E/I firm.
-I work at an architecture and interiors firm. No Christmas bonus... ironically even though we've been extremely profitable.
2 Featured Comments
Ah ... "bonus envy" ... such an uplifting exercise.
It's foolish to approach this topic as though it is some abstract entitlement, wholly divorced from the underlying economics of the profession. Bonuses reflect the fundamental profitability of any firm. Profitability reflects income levels, expense structure, and productivity. If you want a bonus, make a meaningful improvement in those aspects of the business.
By the way, I have personal knowledge of a reasonably well known design firm that has, in many years, issued holiday bonuses roughly equal to annual salary. It's something of a sweatshop, but they do reward time and effort.
Happy holidays.
FYI to Steven and others- we were profitable. We even had our profitability & numbers published nationally.
I can't answer questions about "cash on hand"- I'm not in that sector of the "know".
All 70 Comments
have you been profitable...or just busy? there is an economic rhyme/reason behind bonuses that i didn't fully understand until i was part of the giving side of them. it has a lot to do with cash-on-hand.
I would like to reinforce what Steven writes above. As firms begin to recover from these extraordinary bad times, managing cashflow becomes a huge problem.
Often, as work begins anew, firms must staff up, or pay extra OT pay, in order to generate new billings. Naturally, these are expenses that must be paid immediately.
However, if the firm's clients also have been experiencing slow times, then those clients are likely to be slow payers. So, while a design firm might be busy and generating increased billings, that doesn't necessarily result in increased cash flow until those invoices start geting paid.
If this is just a timing issue, you easily might ask "why doesn't the firm just go out and borrow some money to bridge that gap?" Ordinarily, that would seem a reasonable question -- that is, after all, what a line-of-credit is designed to handle.
However, I know many firms that have lost their line-of-credit, or been forced to accept lower LOC limits, during the past few years because of their weakened financial condition. And, as anybody who reads the paper understands, banks aren't eager to lend money these days, especially to poor credit risks.
This all will work out over time -- but, it is going to take some time for the increased cash outflow to be covered by increased cash inflow. Then, and only then, will more firms be in a position to restore pay cuts and start paying bonuses with any regularity.
i was watching christmas vacation... he was going to use his chistmas bonus to put in an inground pool... and if there was enough left over he was going to fly his whole family down to enjoy it..
that must be like 10k... do chistmas bonuses like that really exist?!?!
10K? For an inground?
Good post quizz. It also has to do with the profit margins on projects these days which are realistically slim to none at most firms. We have been crazy busy for a little over a year but with low fee's being the norm along with what you said (hiring, marketing, etc.) there really isnt any disposable cash to get off the books at year end.
We did get a very small bonus (Arch firm). Although it wasnt large enough to be excited about I think it was done just as a way of saying to the employees "hang in there, we are on the mend"....it helped boost office morale for the afternoon at least.
completely echo quizz and steven on the owner's side. we decided to just get everyone an ipad in lieu of a bonus, for a few reasons, but it was one of those things where people didn't have them and it's one of those things where the intangible payback was far greater than the amount expended.
to opening poster,
I think what they are trying to tell you is that NO Bonuses will be given to any of them.
My christmas bonus just knocked on the door and left and envelope with a $100.00 gift card. Actually it is a from a client I did a project for nine years ago. Every Christmas Eve there is always a knock on the front door and a gift from my client. He was just starting out his business when I worked for him. He was from an Eastern European country, and his English was a bit rough. I walked him thru the whole American world of bureacrats. Planning an Zoning, Health Permits, and Building Permits. Lined him out with some trust worthy contactors and well he has never forgotten it.
Besides the cash flow issues pointed out by a few here, there is also not much of an incentive to give out monetary rewards. Talent retention is just not an issue these days.
A bonus doesn't necessarily have to be in money form. If there is no money to be given out, then these busy offices could find other ways of letting their employees feel appreciated.
Kudos to outed for the iPad gimmick. I'm sure it put a smile on most employees' faces, and made it for a memorable gift.
Ikea recently gave a bicycle to every single person in their workforce. Assembly required, of course.
Talent retention is a problem in some markets, like Chicago, but the talent that has options and can job hop has Revit skills and experience. It is not 2006 level of job hopping but retention is an issue and it is driving business decisions such as relocating closer to the city center, flex hours, and other incentives including bonuses. I think bonuses are one small component of worker retention but not as common as other less expensive perks.
i'd take a job for christmas... i don't need no wall street bonus. time to start shipping off resumes in CH/DE/AT
rusty: "Talent retention is just not an issue these days."
While this may be the immediate circumstance, wise firms are looking ahead to better times and the likely prospect that a high proportion of individuals in most firms will be open to making a move once positions start opening up.
While cash issues make meaningful bonuses difficult for many firms right now, those firms that focus on employee engagement, gratitude and professional respect - the very things they should focus on in all economic environments - will be reasonably well positioned when 'musical chairs' begins.
Outed has the right kind of ideas - i.e. do what you can financially and let your staff know you are grateful for their contributions.
Talent retention is very much an issue for us. We have worked very hard to keep ALL of these folks in jobs. No layoffs. (Not an easy accomplishment, but a commitment we made.)
We just try to let everybody know what's up, what challenges we have.
When things are rosy again, nothing says we have to wait 'til Christmas to let them know they're appreciated.
I was shocked to find out recently that a company I have done work for typically gives out bonuses that are approximately one full year's salary. (And they likely will this year as well.) Then when I began talking about this with friends & family I found out this practice is not out of the ordinary. The world is very different outside the walls of architecture. It's been fascinating to see what kind of compensation the rest of the american white collar workforce simply expects as their regular due. If I showed some of these people this thread they would be equally shocked, and completely dumbfounded at our profession.
Even blue collar workers get bonuses. I know a butcher and a factory worker that got one extra month salary. Architecture is probably the only profession that doesn't give bonuses even in good times. That is the reason why I don;t consider architecture as a real profession, because it doesn't have any elements that resembles a real job. Try to find a job that pays bad, long hours, no bonus, cheap ugly workspace, oudated hardware and software etc. I'll bet that many starchitects firms are working on Christmas day.
My car broke down a few days ago. A bonus would have been very welcome. Now i got to get a loan, since an architect salary doesn't allow you to save any money.
Ah ... "bonus envy" ... such an uplifting exercise.
It's foolish to approach this topic as though it is some abstract entitlement, wholly divorced from the underlying economics of the profession. Bonuses reflect the fundamental profitability of any firm. Profitability reflects income levels, expense structure, and productivity. If you want a bonus, make a meaningful improvement in those aspects of the business.
By the way, I have personal knowledge of a reasonably well known design firm that has, in many years, issued holiday bonuses roughly equal to annual salary. It's something of a sweatshop, but they do reward time and effort.
Happy holidays.
i got 250, plus a lunch. what i gave back; a bottle of single malt scotch and yesterday i bought a large pizza with everything. oh, btw, neither of those items i actually can enjoy anymore, so i ate/drank none.
people at my office got bonuses. i didn't because i just started (happy to have a paycheck!) so i don't know how big they were. however, i did receive what i think is the letter that accompanied everyone else's check.
my christmas err holiday surprise was winning an ipad from a greenbuild expo booth.
oh i work at an architecture/interiors firm
My boss is Jewish. What's Christmas?
quiz "wise firms are looking ahead to better times"
Agreed. On the flip side, employees are just as likely to have unrealistic expectations from their employers. There is nothing you can do for someone who is willing to play a victim. I can be an emotionally draining profession. Small gestures of appreciation can really go a long way. Offer (hopefully) valid for longer than the holiday season...
Steven: "We just try to let everybody know what's up"
That' a big one. I think I was at my most content when I had access to full financial disclosure of the project finances. Knowing when we lost money on a project is just as useful as knowing when we broke even/made a hefty profit. It keeps the expectations realistic.
no bonuses this year for me or my biz partner.
are bonuses really so ubiquitous in ohter fields? i always felt that inequity is part of commerce, especially in north american. heck, i remember when my mother was finally given 20 years of back pay after lawyers decided her company had underpaid all the women in the company for decades (men earned much more than women for the same job). for her that was a bonus.
anyway. up until i started own office i got a bonus of about 4 months annual salary split over two payments a year. was also paid overtime and extra for weekends. i made about 3 or 4 times what my friends made doing reglar office jobs. i don't think my experience was particularly unique.
I don't think anyone in a teaching position gets a bonus.
I once long ago got a $10,000 bonus. Taxes ate a big chunk, of course, but it was amazing to think of getting 5 figures extra!
No bonus this year, but I've never gotten one since becoming self-employed. Which is fine because every day is like a bonus!
This year was $300. Only been at the office 6 months and we have cash, though we lost money the first 3 quarters.
A coworker started mid 2007, his year end bonus that year was $3000. Largest bonus I heard of for that year was $32K.
re: are bonuses really so ubiquitous?
After I learned what I mentioned above, I actually talked about this with some friends of mine (all non-arch) and learned that everyone was expecting a bonus this year (and every year).
is it a very american thing to expect something called a 'bonus'?
incentive based salary is a quintessential American concept. Maybe not so much these days, but it used to be.
not sure this article applies as directly to the topic at hand (or maybe architecture as a whole), but it's a thoughtful look at pay trends as it pertains to the notion of 'stars' vs. average workers. most interestingly, it has a kind of 'finite resources' assumption a lot of economists don't really believe exists (meaning, theoretically, that the supply of 'wealth' that can be created isn't a zero sum game).
http://www.nytimes.com/2010/12/26/business/26excerpt.html?src=me&ref=homepage
incentive-based, yes, rustystuds.
but that's not the same thing as an annual expectation, is it? some folks seem to feel entitled to a bonus - as if they are victims of some inequity because they aren't receiving a bonus despite firms' bleak balance sheets over the past couple of years.
is fair compensation not enough incentive to do your best work? i mean, a company could always lower their official compensation in order to maintain a retainage to award performance, i guess...
would it be better to have give a salary of $45k and have employees brag about a $5k bonus, or better to just have the official salary be $50k?
steven - apparently, wall street's take is the former:
"In some ways, a zero bonus should not come as a surprise to many bankers, Nelson D. Schwartz and Susanne Craig report in The New York Times. As a result of the 2008 financial crisis, Wall Street firms like Goldman Sachs and banks like Citigroup raised base pay substantially in 2009 and 2010. They were seeking to placate regulators who had argued that bonuses based on performance encouraged excessive risk.
At Goldman, for instance, the base salary for managing directors rose to $500,000 from $300,000, while at Morgan Stanley and Credit Suisse it jumped to $400,000 from $200,000.
Even though employees will receive roughly the same amount of money, the psychological blow of not getting a bonus is substantial, especially in a Wall Street culture that has long equated success and prestige with bonus size. So there are sure to be plenty of long faces on employees across the financial sector who have come to expect a bonus on top of their base pay. Wall Streeters typically find out what their bonuses will be in January, with the payout coming in February.
One executive, whose firm prohibited discussing the topic with the news media, said the bump in base salaries had confused people, even though their overall compensation was the same. “People expect a big bonus,” this person said. “It is as if they don’t even see their base doubled last year.”
Dealing with the Zeros can be complicated. “It’s a real headache,” said another senior banker, who asked not to be identified because the topic is so volatile at his company. There has been so much grousing that in some cases, he said, “we’ll throw $20,000 or $25,000 at each of the Zeros so they’re not discouraged.”
http://dealbook.nytimes.com/2010/12/20/this-bonus-season-on-wall-street-many-see-zeros/?scp=3&sq=wall%20street%20bonuses&st=cse
After reading through this entire thread I now know that architects are not only in denial of the current state of the architecture field but delusional about other fields and professions.
Holy crapola.
On the fence,
Things are not good in the architecture profession. They are better but I talked to one gentleman I know who has a masters from an Ivy League university and he made $15k from being an architect in 2010. How can any of us survive on this kind of money?
My friend's Christmas bonus is bigger than this. (She works for a major consulting firm.)
Fees are being bid down because architects will slit their throat for some cash flow. We have to stop this somehow.
Also,we need to create more value in what we do or we will be extinct very soon.
I am looking forward to a more productive and lucrative 2011!
I love how instead of answering the question, most every response is about how clueless and selfish "everyone else" is.
No - I did not. I work at an A/I firm.
This doesn't surprise me - I have had multiple conversations with people at this one place I've worked at wherein they let drop that they bank their entire paycheck directly into savings every year, and live off either investment income or whatever a spouse makes. The amounts involved are so large that they literally don't notice any changes.
I know a consultant in her mid-20s who was asking about whether her last few paychecks had shown up. We searched for them. After much hunting it turned out that direct deposit had kicked in eight paychecks earlier and she hadn't noticed. I literally cannot imagine a single person in the field of architecture being able to withstand that for more than two paychecks max. Gives some insight...
And Steven - a) when I used the word "expects" in my previous post I meant it literally - as in, they had had their year-end reviews and each had been told they were receiving a bonus. They were suprised to learn this wasn't typical in arch.
in any case, b) I think when something happens year after year after year without fail - even when the rest of the economy appears to be suffering - you'd be silly to not "expect" a bonus.
I believe my bonus was getting to come in today.
To answer the initial question - yes, we awarded bonuses this year (arch only firm)-we were fortunate/lucky and had a good year (better than last year). I guess most people who read this thread and had received bonuses kept away from answering because of the vast amount of our peers who were not as fortunate (either in maintaining employment or in compensation struggles) - I assume no one wants to appear to be bragging when so many are straining to survive - the only reason I am responding is to hopefully show that there are bright spots out there in our profession and that things are looking better.
it is normal to get a bonus in japan. loans used to be arranged to accommodate the windfall twice annually. mortgages on houses would be made so that the base rate was xx a month except for twice a year at bonus time when the payment would be XX times 2 or 3. even brochures for condos would say things like "financing at only $1500/month plus $3600 bonus payment twice a year". bonuses went straight to the lenders.
that doesn't happen anymore. bonuses dropped in the lost decade and now people need them to live on, not just pay off loans. so the practice is disappearing.
funny enough japan is entering its third lost decade this year. hurray.
times change.
btw, i have never got a bonus as a university professor, while our clients tend to get 6 figure bonuses. finance world is amazing place.
$400 this year. Used to get about $1,000. Boss will spend $2,000 on a dinner (big wine drinker) without blinking. I am considering burying a $5,000 - $10,000 error/omission into an upcoming project, for S#&TS and giggles.
OF, how was holiday party?
i never got a bonus that big while there! holy smokes. i think mine was like $200.
No Christmas bonus this year but did get a big Turkey!
FYI to Steven and others- we were profitable. We even had our profitability & numbers published nationally.
I can't answer questions about "cash on hand"- I'm not in that sector of the "know".
btw- thanks to those who answered the original question
Fired SmithGroup employee files whistle-blower lawsuit for twice back pay and $25,000 (half of his 2008 bonus) along with bonus pool.
Yes, Architects and Engineers receive large bonuses. Don't be fooled...
http://www.bizjournals.com/washington/stories/2010/06/21/story9.html
...because Smith Group is a good basis for reality... haha!
Definitely. Bonuses that large do exist. In regards to smaller blue collar businesses- workers will actually choose to be employed specifically by those businesses that give year-end bonuses. Ex husband is a blue collar worker and gets approx $3000 at Xmas on top of giveaways of TV's, trips etc. Every employee in the building gets this (hundreds of staff members). No one ever leaves lol.
You revived a 7 year old thread to brag about a 3k bonus and a free tv?
+ trips
LOL
I read this whole thread intently, until I got to a comment that said "looking forward to a more productive 2011." Made me question my whole space-time continuum for a few seconds.
I got a 20k bonus this year... I was completely in shock.. I'm 29 and have been with the same firm for 6 years, Only 2 of those years have been full time.
Sounds like a nice surprise!
that's insane. the state here decided they screwed up some paperwork so they actually took 27k away from our firm. so... another year with no bonus. in 10 years we have only had one year with a bonus. in the other companies during previous 10 years before that, i only got bonuses 2 years. A/E firm here.
yeah, that's your downpayment to buy out the firm, you'll know more at the xmas party.
Yep.
We're happy to have electricity here. Some days the air conditioning or heating doesn't even work. What's a bonus? 0-o
Time for a new job.
Also you totally blew the opportunity to use "IM Cray" as your name. Waste of a good pun. No wonder you didn't get a bonus.
kinda
It depends on where you are geographically. Coastal cities are hot as sh*t right now. If you want more money, its easy to get a job or switch jobs for more money. It's also easy to hint that you're leaving to an employer who appreciates you to lobby for more funds.
well, there does seem to be some nervousness creeping in, so we'll see how long this lasts.
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