Total employee compensation paid out is equal in all three cases.pic.twitter.com/H7BPGiHrcs
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1. Yes. The system must be kept super simple. 2. Maybe but they dont know the amount. I once had a bonus system as an employee where i optionally got 25% every quarter based on the subjective judgement of my boss. It worked quite well. You learn quickly whats expected of you.
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No "objective" metrics, it was mostly 3 sentences like you (don't) get it because project A and B. We tried to set metrics like finishing on time, extra effort, etc, but in a startup environment when requirements by the day it's hopeless.
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So it was holisitic, subjective, changing from quarter to quarter, possibly arbitrary (I'm guessing this guy was a good boss and you felt judged fairly), and qualitative? It was also regular and it worked.
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