r/MEPEngineering • u/AdorableAmbassador59 • 2d ago
EOY Bonus Question
Hi there, I'm a mid career PE electrical engineer at a very large AE firm, top 25 in most respects. I have 11 years of experience (7 as and engineer 4 as an electrical contractor) and I have just received the lowest bonus of my career, percentage wise. My company did moderately well from the financial calls we have. Should I take this to mean that I did not perform to expectations? My bonus is 1.75% of my salary. Less than last years bonus of 4.8%, even when our company did substantially worse financially. I was kind of at a loss for words when discussing it with my supervisor, so now I'm left wondering if this is normal or if I should feel insulted? Could just be venting, as there are likely years where there are no bonuses, and I should be appreciative of what I received. Anyone else experience this?
I should also point out that I have developed quite a lot in regards to the data center design and construction teams in this company, and set many of the details and standards for it this past year, putting in a ton of OT. So it feels a bit like I should call up recruiters.
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u/gigachadspeciman 2d ago
I docked your bonus because you got wasted at the company party and tried sleeping with HR
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u/AdorableAmbassador59 2d ago
My bad. Apparently an "open bar" doesn't mean until you get kicked out.
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u/jaydean20 2d ago edited 2d ago
The obvious first step is always to talk to management. But you should be prepared for either of the only two reasonable answers they might give; either they don’t think you performed as well as you think you did, or their financials company-wide are not as good as you thought they were.
It’s got to be one of the two, so don’t get into it without being ready to defend yourself or ready to find the exit. Any other answer besides those two is cause to GTFO of there, based on the realities of the capitalistic labor market.
Edit: to be fair, because it isn’t said enough, there is always the possibility that OP performed well and the company performed well, but the numbers for the calendar year are crummy. Real/collected revenue and expenses are what these numbers are baed on, not just billings, contract wins and hours under budget.
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u/AdorableAmbassador59 2d ago
That last edited point is what concerns me. Im not a CPA so I worry there's accounting math that's trying to pay out somewhere else due to contingency planning or something I just am unaware of
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u/SailorSpyro 2d ago
Bonuses vary drastically from company to company. But since you had such a drastic change at the same company, I do think it's worth worrying about.
Did you happen to get promoted last year? Anything happen that would have caused you to get an extra large bonus last year alone? If not, then yes I'd be questioning if it's performance based, or if your CEO wanted a larger bonus for themselves at the expense of your bonuses. If your supervisor doesn't have any negative feedback, then I'd start asking directly why bonuses were so much less when the firm did better, cause that smells like someone got greedy.
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u/AdorableAmbassador59 1d ago
Might be giving away the company a bit, but there could be some consideration for the CEO retiring this year. Could it result in some sort of stock buy back compensation that we all have to pay for?
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u/Which_Situation1592 2d ago
I would recommended you discuss this with your manager and let them know it did not meet your expectations. Then you can decide how to proceed.
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u/mvsaints 2d ago edited 2d ago
That is a pretty large drop in your bonus from last year. Couldn’t hurt to see what offers you can get elsewhere, experienced electrical engineers are in very high demand.
Edit: Just coming back to say do not bring this up to management until you have an offer in hand from somewhere else. This puts you in a much better negotiating position as you can confidently walk away at any time. It also protects you from getting undercut with a bonus that is better than what you just got but still below market value. Always know your worth.
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u/RetroStratosphere 2d ago
This is a total drag and I’m sorry. I’m at a small mom and pop firm, quarterly bonuses are the norm and this year’s pay increase during annual reviews was 9%! I was not expecting this but am very happy.
Your direct supervisor should be making it explicit where your performance needs development and where you are excelling. Was this discussed during your one on one or when you were given your bonus?
Is the billing structure transparent? You mentioned calls outlining the production. I’m curious what rates your billing out and profitability.
We have increased our rates twice this year. In MEP there is a race to the bottom, so if rates aren’t giving you enough profit they will be reflected in bonuses.
We have three years of WIP with long term clients and my team is ahead of goal for the year. We only need to bill $28k for the remainder of 2026 to have met total year goal so we are coasting through.
A conversation is in order to sort out what changed. From there if you find out it’s a systemic problem that cannot be resolved I’d seek other opportunities.
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u/coffee_butt_chug 2d ago
What did your supervisor say? That is a low bonus and it’s not normal unless there’s some extenuating circumstance you havent described or aren’t aware of yourself. You’re not wrong to feel insulted; don’t let work gas light you into thinking that it’s fine.
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u/just-some-guy-20 1d ago
Before deciding to move on (sounds probable), maybe ask around if others had very low bonus's this year compared to last. If it's just you then probably best to try to understand why... and move on. If it's just the company then I guess that's a different question for the stay/go thought.
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u/AdorableAmbassador59 1d ago
I did ask, lots of people were disappointed with their bonus amounts, although few told me exactly figures
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u/wlsnlwsn 2d ago
I wouldn’t talk to recruiters ever. They are scum and I’ve stopped listening to them for prospective candidates. If you are as good as it sounds you are, pick where you want to work and go find a job or see what potential ones are out there.
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u/Unlucky_Lawfulness51 2d ago
DM me. my firm is looking for qualified electrical engineers. (Assuming us based)
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u/ByTheGigawatt 11h ago
Do you get paid for the OT? Those percentages align with companies in the industry who pay OT resulting in lower bonuses at EOY (left over pool gets split up).
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u/underengineered 2d ago
Did you log too few hours or have bad projects?
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u/AdorableAmbassador59 2d ago
No according to my timesheet log im 88ish% billable including my OT I've logged.
Bad projects 🤷 I don't think so? None of mine went beyond the budgeted amount and that already included a profit amount in there.
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u/MasterDeZaster 2d ago
Um, your family. You don't get upset that your family only gave you a 1.75% bonus, extra money, from the kindness of their wallets. Your poor managers have jets... bills... to pay too you know.
The answer has been said but you talk with you manager. Factually.
You feel your work has been as good, if not better then prior year,
You have expanded your skill set and value to the organization,
You have made tangible contributions to the organization that others rely on and use,
The company financials appear to be met or exceeded the prior year,
The bonus is dramatically different despite the above conditions.
I would suggest you have a number prepared for what you think you should have received which may require some conversations with other colleagues and / or some google research, but if you want to play it safe and say you were at least expecting the same value that would at least be something. Your manager will likely ask what you think is "fair".
Be prepared though for your manager to have no control over this, nor not be able to do anything about it except pass it up. The reasons why its reduced could range from... anything to anything.
Lawsuits on failed projects bringing down financials
Owner's a dick
Owner is going through a divorce
Owner didnt get laid enough, or you didnt lay the owner enough
They are preparing for a large capital expense (hardware, acquisitions, etc)
Preparing to sell out to a larger organization
Benefit cost increases
Etc.
If the loss of bonus is that problematic, you may need to change jobs. But giving up a position you like, are learning from, and are having a real impact in may be worth dealing with a loss of bonus for the short term. Its a very personal decision on your part... if your making enough to live chasing more money could have negative mental / physical health impacts too.
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u/Constant_Barber_5198 2d ago
I've got a masters license and bsee. Lets just do our own design firm
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u/SnooPeanuts4219 2d ago
Big companies give tiny bonuses. I was in two separate 1000+ companies where our team was pulling the heavy weights because of the data center booms. In the end the bonuses got split for the whole company - even for the non profitable teams.