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Bonus Agreement
"I need a Bonus Agreement under Swiss law for a senior sales executive, including quarterly performance targets and an annual payment structure, with 70% based on individual sales targets and 30% on company performance, to be effective from January 1, 2025."
1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the agreement, employment relationship reference, and any relevant preceding agreements
3. Definitions: Key terms used in the agreement, including 'Bonus', 'Performance Year', 'Target Amount', 'Performance Criteria'
4. Bonus Structure: Detailed explanation of the bonus type (discretionary vs. contractual), target amount, and basic calculation principles
5. Performance Criteria: Specific metrics, KPIs, or goals that will be used to determine the bonus amount
6. Calculation Method: Detailed methodology for calculating the bonus, including any formulas or weightings
7. Payment Terms: Timing of bonus payments, currency, payment method, and any conditions precedent
8. Employment Conditions: Requirements regarding continued employment, impact of notice periods, and good leaver/bad leaver provisions
9. Deductions and Tax: Provisions regarding statutory deductions, social security contributions, and tax withholding
10. Amendments and Termination: Conditions under which the agreement can be modified or terminated
11. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes
1. Clawback Provisions: Optional section for circumstances where bonus payments may need to be returned, typically used for senior executives or regulated functions
2. Non-Competition Impact: Reference to how bonus payments interact with any existing non-compete obligations, relevant if there's a separate non-compete agreement
3. Group Company Provisions: Required if the bonus is linked to group company performance or if employment may transfer within a group
4. Regulatory Compliance: Necessary for regulated industries or if the employee is subject to specific regulatory requirements
5. Bonus Deferral: Details of any deferred portion of the bonus, typically used for senior management or financial institutions
6. Pro-rata Calculations: Detailed provisions for calculating partial year bonuses, relevant for agreements where employment may start/end mid-year
1. Schedule 1 - Performance Metrics: Detailed breakdown of specific performance criteria, targets, and measurement methodologies
2. Schedule 2 - Calculation Examples: Illustrative examples of bonus calculations under different scenarios
3. Schedule 3 - Payment Timeline: Detailed timeline of assessment periods, decision points, and payment dates
4. Appendix A - Bonus Plan Rules: Comprehensive rules governing the bonus scheme, including all technical details
5. Appendix B - Related Policies: Reference to relevant company policies affecting bonus payments (e.g., malus policy, code of conduct)
Authors
Financial Services
Banking
Insurance
Professional Services
Technology
Pharmaceuticals
Manufacturing
Retail
Telecommunications
Construction
Real Estate
Healthcare
Consumer Goods
Energy
Consulting
Human Resources
Legal
Finance
Sales
Information Technology
Operations
Research & Development
Marketing
Business Development
Product Development
Customer Service
Trading
Investment Banking
Risk Management
Compliance
Chief Executive Officer
Chief Financial Officer
Sales Director
Account Manager
Investment Banker
Software Developer
Project Manager
Business Development Manager
Regional Manager
Department Head
Senior Consultant
Research Scientist
Product Manager
Operations Manager
Trading Professional
Marketing Director
Financial Analyst
Sales Representative
Technical Lead
Senior Engineer
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