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Distribution Rules Explained

How awards are divided among employees.

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Written by Guy Halperin

Distribution Rules Explained

Distribution rules determine how the award pool is split among eligible employees. Your plan uses one of these methods.


Compensation

Awards proportional to your salary/compensation. Higher paid employees get proportionally larger awards.

Example: If you earn 10% of total team comp, you get 10% of pool.


Role-Based

Different roles have different award structures. Your position determines your potential award.

Example: Technicians vs. Sales vs. Management tiers.


Even Distribution

Pool split equally among all eligible employees. Everyone gets the same amount regardless of role.

Example: $10,000 pool ÷ 10 people = $1,000 each.


Performance-Based (Custom)

Your KPI scores determine your share. Better performance = larger slice of the pool, weighted by KPI importance.


Billable Hours

Awards based on hours worked/billed. More hours = larger share. Common in service industries.


Tenure

Length of employment affects award size. Longer tenure may mean a larger multiplier.


Rating

Performance ratings factor into calculations. Higher ratings = larger awards.


Where to See Your Plan's Rules

Check the Distribution Rules section in your plan's Plan Summary tab.

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