How to negotiate Salary · True or False
Is it true that if a bonus structure is discretionary, you should assume you will always receive 100% of it?
False. Discretionary bonuses depend on company performance and manager approval; never treat them as guaranteed cash.
Discretionary bonuses depend on company performance, manager discretion, and often subjective criteria — treating them as guaranteed inflates your expected income by 10-30%.
Planning your budget around the full bonus amount when it may be reduced or eliminated based on factors outside your control.
This scenario is one of 500 in the Skillful How to negotiate Salary track. Each card states a situation, you decide true or false, and the explanation follows immediately.
- Answer
- False
- Track
- How to negotiate Salary
- Topics
- total-compensation, risk-assessment
Also asked as
Should you assume a discretionary bonus is guaranteed? Are discretionary bonuses reliable income? How to evaluate performance bonuses in job offers?
The scenario in full
If a bonus structure is discretionary, you should assume you will always receive 100% of it.
Frequently asked questions
Is it true that if a bonus structure is discretionary, you should assume you will always receive 100% of it?
False. Discretionary bonuses depend on company performance and manager approval; never treat them as guaranteed cash.
Should you assume a discretionary bonus is guaranteed?
False. Discretionary bonuses depend on company performance and manager approval; never treat them as guaranteed cash. Discretionary bonuses depend on company performance, manager discretion, and often subjective criteria — treating them as guaranteed inflates your expected income by 10-30%.
Are discretionary bonuses reliable income?
False. Discretionary bonuses depend on company performance and manager approval; never treat them as guaranteed cash. Discretionary bonuses depend on company performance, manager discretion, and often subjective criteria — treating them as guaranteed inflates your expected income by 10-30%.
How to evaluate performance bonuses in job offers?
False. Discretionary bonuses depend on company performance and manager approval; never treat them as guaranteed cash. Discretionary bonuses depend on company performance, manager discretion, and often subjective criteria — treating them as guaranteed inflates your expected income by 10-30%.
Where does this how to negotiate salary question come from?
It is one of 500 scenarios in the Skillful How to negotiate Salary track. Each card states a realistic situation, you decide true or false, and the explanation follows immediately.
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