One global bonus plan, 31 countries, local targets: how do you keep the funding fair?

A narrower payout range helps more than better targets. Ours runs from 50% to 150% on the country element with a wide band around target that pays between 90% and 110%. Budget quality still varies but it matters much less.

I disagree with narrowing the curve. If the country element barely moves, you have a group profit share with extra administration. I would rather keep real leverage and add a calibration step, where the executive committee can adjust a country result by up to 15 points either way with written reasons.

Discretionary calibration by the executive committee tends to become a favour to whoever is in the room. If you add it, tie it to defined events: currency devaluation beyond a set percentage, an acquisition, a plant closure decided by group. We list six events and nothing outside the list qualifies.