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extra amount in money, bonds, or goods over what is normally due. The term is applied especially to payments to employees either for production in excess of the normal (wage incentive) or as a share of surplus profits. The wage incentive was designed during the late 19th cent. not only to increase production but to reward the more skillful and more energetic workers. The hourly or weekly wage was to be figured as payment for a standard rate of work, and the workers who exceeded that standard were to receive a bonus. However, the system fell into disfavor with labor unions because rate cutting was often resorted to when bonuses became too high. Industrial engineers of the 1930s realized that definite standards of accomplishment and quality must be set to make wage incentives workable. Many firms have used an annual bonus plan for distributing abnormal profits to employees. The term is also applied to payments to former servicemen in addition to regular pensions and insurance. Veterans of World War I lobbied to obtain a bonus for their military service. In 1924 each veteran received an adjusted compensation certificate entitling him to a payment averaging $1,000 to be made in 1945. In 1932 about 15,000 unemployed veterans formed the "Bonus Expeditionary Force," or Bonus MarchersBonus Marchers,
in U.S. history, more than 20,000 veterans, most of them unemployed and in desperate financial straits, who, in the spring of 1932, spontaneously made their way to Washington, D.C.
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, and marched to Washington to demand immediate payment of the certificates. President Hoover ordered troops to oust them from federal property. In 1936 Congress passed a law permitting the veterans to exchange their certificates for cashable bonds. A number of states voted veterans' bonuses after World War II and the Korean War.


See W. W. Waters, B.E.F.: The Whole Story of the Bonus Army (1933, repr. 1969); V. D. Kennedy, Union Policy and Incentive Wage Methods (1945, repr. 1969); J. K. Louden, Wage Incentives (2d ed. 1959); R. Marriott, Incentive Payment Systems (3d rev. ed. 1968).


(petroleum engineering)
Payment by a lessee of an oil- or gas-production royalty to the landowner at a rate greater than the customary one-eighth of the value of the oil or gas withdrawn.
References in periodicals archive ?
For example, over the past five years, on average, 6% of bonuses have been forfeited by employees who left before the bonus payment date.
Johnson Associates say equities traders and hedge fund employees will likely see bonuses rise by 5% to 15%.
The employer's liability to pay a minimum amount of bonuses to the eligible employees is fixed at the end of the tax year in which the services are rendered;
Whether in banking or not, the ultimate test of paying bonuses is whether they incentivise individuals to produce better results.
When asked if consideration was given to not awarding bonuses, which were made in the summer, for the last financial year, the spokesman said: "The Permanent Secretary did waive her bonus, and we did give consideration to not paying bonuses, but it was felt that as the system is UK-wide we should follow the UK procedure.
There is still an element of uncertainty regarding discretionary bonuses where the payment and amount of the bonus are not guaranteed.
The bonuses amounted to just under $600 each for teachers at more than 4,800 public schools in the Golden State; it cost the state a total of about $350 million.
Among those companies offering bonuses are American Skandia, Nationwide Life Insurance Co.
While the bulk of these cash incentives still go to senior executives, a recent survey of chief information officers (CIOs) shows a growing number of firms are offering bonuses at staff and management levels to recruit top IT candidates.
Generally, employee base salaries are frozen and all future pay increases are given as lump-sum bonuses.
This article considers CVP analysis when earnings-based bonuses are to be included as an expense in the above model.
While salaries have increased approximately 25 percent over the last five years for top management positions, bonuses have increased far more.