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RobertR1 (South Carolina)
Posts: 5,164
Posted:
What is the opinion when it comes to authority of the Board to award employees a monetary bonus, for a job well done?
A scenrio develops that over a long period of time.........twenty years in fact, a significant bonus was bestowed on a manager or managers in this case. I can't say it happened each and every year but it happen nearly that often and maybe included three different managers. Would this kind of authority be consistant with good business practices even if it was addressed in the documents specifically, which it was not. The members vote on accepting the budget each year and these amounts were never reported except as part of some other line item on the budget, in this case "contingencies", or something along these lines like Discretionary funds?
How do other condos handle this issue of Monetary bonuses?
MaryA1 (Arizona)
Posts: 7,043
Posted:
Robert,

IMO, a contractor shouldn't be given a bonus -- afterall they are setting their fee for the services they will perform. However, if the assn has employees the board may wish to give a bonus for a job well-done and to perhaps compensate for a lower salary. Unless the docs are specific on the topic, IMO it is at the discretion of the BOD as to whether or not bonuses will be given. My assn does not give our PM a bonus and this decision has absolutely nothing to do with job performance. In fact, we have the most efficient and knowledgable PM any BOD could ask for.
PeterB1 (Florida)
Posts: 257
Posted:
We award our Security guards a bonus at the end of each year (assuming their performance is OK). It helps retain the people we want to retain.

The bonus estimate is included in the budget as part of payroll. Shortly before the end of the year, the Board votes on the amount of the bonus.

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