Film-Tech Forum ARCHIVE: Management Bonuses

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Posted by Blake Zaugg (Member # 1455) on 12-06-2003, 06:44 PM:

Does anyone have some creative (or not so creative) ways of calculating bonuses for management staff?

I have heard of X percent of concession sales, (but no idea what that percentage is).

I have heard of flat rate for extra bookings.

We have a checklist of monthly tasks, and Quarterly tasks that each have a $ amount attached to them ($50 - $100 each) such as newsletter/staff meeting, promotions, community liaison, etc. Also included is attendance increase over last year, Concession per capita over last year and, "other revenue" increase over last year. Ours is set at $1500 Quarterly - ($6000 anually).

Posted by Dennis M Dow Jr (Member # 1970) on 12-06-2003, 09:20 PM:

Most that I have seen are concession bonuses.... Depending on chain can be anywhere from 3-8 pct..

Posted by Mike Spaeth (Member # 524) on 12-06-2003, 09:23 PM:

I'm familiar with 2% of concession sales (less shortages) ... and 10% of dark-time income.

Posted by Jason Black (Member # 684) on 12-06-2003, 10:54 PM:

Mike,

Was the 2% bonus from the top or above a set quota? Understandably, shortages shoudl come directly out of any bonus program. Too bad my company doesn't see things this way.. We have NO concession bonus at all.

Posted by Adam Fraser (Member # 1074) on 12-06-2003, 11:31 PM:

Do many larger theatres pay out 2% concession bonuses? It would seem like if taken on full 2% of gross a busy 20 screen manager could possibly get $50,000. Which seems impractical.

Posted by Jason Black (Member # 684) on 12-06-2003, 11:38 PM:

Adam,

This is exactly the reason I asked about quotas. Most of the larger chains I've known to pay concession bonus monies mandate that (based upon any given formula) you must meet xxx amount of dollars and you'd be eligible for a bonus on any monies made above and beyond the quota.

I've known managers to make their annual salary in discount ticket sales.. which pays only a 3% commision with my company!

Posted by Mike Spaeth (Member # 524) on 12-07-2003, 04:38 AM:

with my former employer your "target commission" was based on your previous year's sales ...

You were set up so that you were 80-20 salary/commission.

If your yearly sales were $500,000 ... and your "target commission" was $5,000, then you received 1% of concession sales ... the nice thing about this is that when you hit your "target commission", your rate doubled for the rest of the year.

Now we do 2% off the top ....

Posted by Scott D. Neff (Member # 185) on 12-08-2003, 08:10 PM:

When I was with Cinema West I helped establish a comission program based on programs existing from other various chains. I think it worked out nicely.

It was (2% total Sales x percap)+overages-shortages-spoilage. I don't know how this plan is working in the long run, but it makes logical sense. It worked out so that even if your location didn't make a lot of sales, but people still bought a lot, your comission could triple in some cases, depending on yoru percap. It also worked out as decent motivation for those managers who just couldn't track down shortages. However, I found that if various manager's got hungry, they'd simply eat from the stand because it was going to come out of their pocket via the shortages.

Posted by Kelly Skaggs (Member # 1780) on 12-09-2003, 10:35 AM:

Does anyone have their bonus based on low payroll? The company I work as an operator for, bases the District manager and Theater managers bonus on low payroll only. [Confused]

I think that is a major joke, it teaches the managers that if they kill the concession per cap and theater cleanliness they will still be rewarded. [Eek!]

Posted by Blake Zaugg (Member # 1455) on 12-09-2003, 01:34 PM:

I think that payroll goals should be a factor, but not the only one. Payroll high or low is one of the huge areas that will definitely make or break a theatre.

Mike & Scott, were those calculated anually, quarterly, monthly? and how often was it paid out?

And Scott, when you say total sales it that concession, tickets, slides, booking revenue, Gift Certificates, Pass sales, etc..?

Posted by Scott D. Neff (Member # 185) on 12-09-2003, 01:36 PM:

Our's were paid out monthly (every 4 weeks) and it was based on total concession sales (total retail, including tax)

Posted by Dennis M Dow Jr (Member # 1970) on 12-11-2003, 12:10 PM:

When I worked for UA, the yearly bonus was based on a variety of factors including payroll. What was nice was you could miss your monthly bonuses but if you met the yearly targets you got the whole 12mos.

Posted by Don Bruechert (Member # 1538) on 12-11-2003, 09:59 PM:

Our concession bonus begins with a requirement that we stay within a 5% margin on our "yields". I am assuming everyone knows what yields are so I won't go into it. If we make our yields, then the total commission is 1.5% of the concession profits (if I recall). That 1.5% is divided by the number of management hours worked in that period to come up with a share per hour. Then each manager gets the number of shares that matches the hours they worked.

There is another one we can get if we keep our payroll costs within certain limits, but I am not sure if we have gotten that one more than a few times.

Supposedly there is another one that puts 1.5% into some kind of escrow or something that gets paid out at the end of the year if we keep both the payroll and the yields in line for a period... I don't think any of us has ever gotten that one, but everyone in the place did get an Xmas bonus last year.

Posted by Mike Spaeth (Member # 524) on 12-11-2003, 10:07 PM:

former employer - Monthly

current employer - Quarterly