Ask the Expert: How do I get a good bonus?
Would that it were possible to ensure a fair bonus! Things have got a bit better in recent years, since a couple of landmark legal cases where individuals challenged their bonus payments and won. In particular, since the Louise Barton case against Henderson Investec, employers will not be able to argue that secrecy and subjectivity in deciding payments are necessary to keep employees on their toes.
As a result, there is a bit more transparency in bonus systems in some banks and certainly employees can ask how bonuses are allocated and should receive a coherent reply. But frankly speaking, most banks still operate within a cloak of secrecy on this matter and the net result is high anxiety and uncertainty of the kind you are experiencing: A recent online poll on efinancialcareers revealed that only 30% of respondents anticipated their bonus level with any degree of accuracy, so at least you are not alone.
Having said that, as a trader you are in a better position than many to argue the level of your bonus objectively. Tony Tucker, who spent many years as a banking HR director, says he never came across a low performing trader getting a higher bonus than a better performer. 'The fact that your boss is better mates with your colleagues should not make a difference to that basic principle,' he says.
For now, however, given how late it is in the year, your best option is to sit tight and wait and see what you get. Try not to stress about it or become a bonus-bore with your mates, because the decision has probably already been made and there is nothing you can do at this stage to change it. And you never know, you may be pleasantly surprised.
If, when bonuses are announced, you feel hard done by, you can challenge the decision legally by bringing a breach of contract claim. Our legal expert, Makbool Javaid of DLA, says bonuses, even of the discretionary variety, cannot be allocated on a 'capricious, arbitrary or irrational' basis.
The first step in legal action would probably be establishing some facts about how much other comparable employees received. Although you do not appear to be claiming discrimination, you can nonetheless use anti-discrimination legislation to require disclosure from your employer of bonuses paid to others of a similar level.
But all that is a long way down the line and something you should seek proper legal advice on and consider very carefully before starting.
What we would say to you for future years is don't leave it so late. Talk about bonuses at your annual appraisal. Ask how bonuses are allocated and - this is the important bit - ask what you would need to do to get a bonus of x or y. Try to agree some measurables, not just vague statements like 'good performance'. Although this offers no guarantees, it puts you in a stronger position to argue for what was agreed, if it isn't delivered.
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