Incentive Compensation
Your performance made a difference. Your bonus recognizes it.
The firm’s annual performance-based bonus program is designed to support our high-performance culture. Bonus determinations are carefully considered based upon individual performance across a variety of financial and non-financial factors, as detailed in the Employee Bonus Program.pdf
When the firm succeeds, we share that success, and the individuals with the highest overall performance will receive the highest allocation of bonus dollars.
| 1. Firm Results | 2. Team Pools | 3. Your Performance |
|---|---|---|
| The firmwide bonus budget is set each year based on the firm's financial performance. | The budget is divided into region and practice unit bonus pools. | Individual bonuses are awarded from those pools based on your performance. The strongest performers receive the largest share. |
What We Consider
Leaders look at a balanced mix of factors, including some of the factors below. Not every factor applies to every role, and leaders use judgment, because no list can capture every situation.
| Financial Contributions | Non-Financial Contributions |
|---|---|
| Hours and utilization | Performance and growth (Builder Score from your most recent talent review) |
| Realization and net fees | Firm competencies and client experience |
| Collections and risk management | Coaching, mentoring, and recruiting |
| Timely time reporting | Committee involvement, citizenship, and technical skills |
| Bonuses are discretionary. Amounts aren't guaranteed and can change from year to year with firm results and individual performance. | |
| Hired by January 31 | Regular Status | Meeting Expectations |
|---|---|---|
| You must be hired on or before January 31 of the bonus year. Bonuses are prorated if you were employed for less than the full fiscal year. | You must be a regular (non-temporary) full-time or part-time team member. | You must be performing at or above expectations. |
Not eligible
- Team members in other bonus or incentive pay programs, and commissioned employees
- Interns, student associates, seasonal, Talent Shift, and third-party or contract workers
- Anyone who resigns before the bonus pay date, even if their last day falls after it
Starting in 2027, the annual bonus moves to the same timeline as merit and promotions. Performance and pay decisions are made together, using the most complete view of your year.
| Spring | Summer | Mid-August | End of August |
|---|---|---|---|
| Annual talent calibration | Bonus and merit planning | Your leader shares your bonus | Bonus paid with your regular pay |
Paid with your regular pay.
Your bonus is included in your paycheck on the bonus pay date.Taxes and 401(k).
Applicable taxes and your 401(k) contributions are withheld. The plan doesn’t have a separate election for bonus pay, so any change to your contribution rate in Schwab applies to both your bonus and your regular pay.Want to adjust your 401(k)?
Make changes in your Schwab account before the deadline posted each year in the Bonus FAQs.