How is the quarterly bonus for General Managers calculated?

The calculation for the quarterly bonus for General Managers being (This Year Adjust CP - Last Year Adjust CP) x 20% reflects a performance-based approach that encourages improvements in financial efficiency and operational success. This formula assesses the change in adjusted contribution profit (CP) between two consecutive years, showing how well the manager has enhanced profitability over time.

By structuring the bonus in this way, it aligns the General Manager’s incentives with the overall financial growth of the business. If the adjusted contribution profit increases, it indicates better performance when compared to the previous year, resulting in a bonus that appropriately rewards effective management strategies and decisions that led to this growth. Managers are therefore motivated to focus on actions that directly improve their performance metrics.

This method of calculation fosters a competitive environment, where General Managers are incentivized not only to maintain, but to improve profitability year over year.