Fuse Blog

Firm Profitability: Top Metric for Calculating Product Team Bonuses

  • For the second consecutive year, firm profitability surpassed individual qualitative assessments, outranking all criteria in importance when determining product team bonuses, based on FUSE Research’s forthcoming Product Management & Development 2023 BenchMark report.
  • Current market conditions have a direct impact on assets, revenues, and profitability—all factors that product team members cannot control directly. Since market appreciation has driven much of the asset growth, it may have an adverse effect on 2023 bonus levels.
  • Regardless of how payouts are measured, transparency must be embraced so team members clearly understand how each benchmark impacts their overall compensation.
  • As the line blurs between “traditional” and “alternative” managers, retaining existing talent has escalated from a “nice to have” to a “must have.”

Importance of Criteria When Determining Product Team Bonuses

Blog LT 10.16.23 Final

Source: FUSE Product Survey, 2023