Boulay Incentive Compensation & Retention Plan

Plan Overview

(June 1 - May 31)

PURPOSE

 

The Incentive Compensation & Retention Plan was established to inspire and reward team member efforts that go above and beyond standard expectations of their position to help serve our clients, attract and retain talent, and help advance the development opportunities of our team members.

 

As our business evolves and needs change, so should the plan.  Boulay is committed to reviewing the plan annually to best align with organizational and department needs.

 

 

ELIGIBILITY

Full-time and Personalized Schedule Arrangement Team Members of Boulay PLLP within the following departments are eligible:

• Audit
• Tax
• Boulay Transaction Group

• Risk Advisory

• Private Client Services
• Estate & Trust
• Accounting Advisory
• Accounting Clarity
• Retirement Plan Administration

Partners, consultants, contractors, seasonal/temporary team members, along with individuals in departments not listed above are excluded from eligibility.

 

INCENTIVE PLAN POOL

 

Annually, each department is allocated dollars to reward plan participants.  We refer to those dollars as the Incentive Plan Pool.  The Incentive Plan Pool is a calculation based on each department’s actual Contribution Margin.  Below, we outline important components of the Incentive Plan Pool.

 

Incentive Plan Floor

As of FY25, the Incentive Plan Floor is calculated as a percentage of actual contribution margin, determined by the department’s actual contribution margin relative to the budget.

 

Additionally, should a department successfully complete their Incentive Plan Goal (set by PICs and Department Leadership on an annual basis), the department will unlock an additional 0.5% of their adjusted Contribution Margin. 

 

Above & Beyond Dollars

Departments can earn additional dollars in the Plan for each percentage point they exceed budgeted contribution margin. You now have an opportunity to increase your department’s pool percentage to the maximum of 6.15% depending on actual results.

 

POOL PERCENTAGE (FIGURE 1 OPTION)

 

POOL PERCENTAGE (FIGURE 2 OPTION)

 

INCENTIVE PLAN FLOOR CALCULATION EXAMPLES

 

POINTS & CRITERIA

A team member is rewarded with dollars from the Incentive Plan Pool based on points they earn each year. Points are earned based on their above and beyond contributions in the criteria selected by their department PIC. By August, a PIC must choose no less than four of the following seven criteria each plan year for their department. This allows the PIC to choose the most relevant criteria to the department based on their individual needs. Total points available will always be 100, and the distribution of points to each criterion will be determined by the PIC and approved by Executive Board each year. A single selected criteria cannot be weighted less than 10 points or more than 40 points in any given year.

Criteria

Description

Billable Hours

Billable hours up to 200 in excess of one’s Billable Hours Goals (or standard hours if they are less than your billable hours goal)

Individual Realization

Team members with realization greater than or equal to 80% will receive points on where their individual realization falls within the following ranges:

 

Realization Range                                          Percentage of Criteria Points

95%+                                                                        100%

90-95%                                                                    80%

85-90%                                                                    60%

80-85%                                                                    40%

 

Team members with realization less than 80% will earn points based on their year-over-year improvement in realization.

 

Year-Over-Year Improvement                      Percentage of Criteria Points

3%                                                                             30%

2%                                                                             20%

1%                                                                              10%

Project Difficulty

The willingness to seek and/or perform work which requires skills and expertise above one’s current position.

Staff Development

Engagement in Firm & department people initiatives (i.e. Boulay Buddy, Mentor, DEI education/events,  Leadership Programs, B-Volve, B-Well, B-Involved, B-Together, onboarding assistance, department events,), development of self (i.e. pursing additional skills/knowledge), providing timely feedback, and training of others (above and beyond general day-to-day assistance).

New Project Participation

Involvement with projects that are new to the firm, new to the team member, and/or taking on projects to assist with department processes, improvements, and needs.

Talent Acquisition Participation

Engagement and contributions to Talent Acquisition (TA) processes, idea generation and efforts at Boulay (i.e. recruiting bootcamp, campus activities, referral efforts, candidate assessment and interviewing)

Efficiency

Optimizing one's time, effort and resources. (i.e. plan, prioritize, and adapt to work conditions to best accomplish the task)

Click on the departments above (under Eligibility) to see specific details.

 

 

Position Weighting

Additionally, each year PICs will determine weighing by position for their department. Points you earn will be weighted based on your position. Your weighted points as a percentage of the department’s total weighted points will be used to allocate your portion of the Incentive Plan Pool. Position weightings will be determined by PICs, in conjunction with the Managing Partner, each December. Weighting by level ranges from 1.00 to 3.50.

 

Awarding Points

Points for billable hours and individual realization, if utilized, will be determined using hours recorded.

 

Points for all remaining criteria, if utilized, will be determined through multiple methods including:

• Hours Reports
• Self-Assessment Data

 

This information will be reviewed with Managers, Senior Managers and Partners within your department as part of the Calibration Discussions at the end of the plan year. Points will be allocated to individuals using the subjective assessment grid below.

Placeholder

Level 1

Level 2

Level 3

Level 4

Subjective Criteria

Score Between 0-2.5

Score Between 2.6-5

Score Between 5.1-7.5

Score between 7.6-10

Project Difficulty

Participant's work assignments required skills/expertise appropriate for their position and were minimally complex.

Some of participant's work assignments stretched the participant beyond on their position and/or were comprised of some complex project(s).

Many of participant's work assignments required skills/expertise that stretched the participant beyond on their position and/or were comprised of many complex project(s).

Majority of participant's work assignments required skills/expertise that stretched the participant beyond on their position and/or were primarily comprised of complex project(s).

Staff Development

Participant's engagement in firm and department initiatives, providing feedback, and training self or others are appropriate for their position.

Participant's efforts with engagement in firm and department initiatives, providing feedback, and training self or others occasionally went above and beyond their position.

Participant's efforts with engagement in firm and department initiatives, providing feedback, and training self or others frequently went above and beyond their position.

Participant's efforts with engagement in firm & department initiatives, providing feedback, and training self or others consistently went above and beyond their position.

New Project Participation

Participant's work assignments were primarily recurring for the individual from the prior year. Participated minimally in additional projects for the department.

Participant's work assignments included some new projects to the individual or the firm. Participated in some additional projects for the department.

Participant's work assignments included many new projects to the individual or the firm. Participated in many additional projects for the department.

Participant's work assignments were primarily new projects to the individual or the firm. Lead additional project work for department.

Talent Acquisition Participation

Participant is minimally engaged in talent acquisition efforts.

Participant is occasionally engaged in talent acquisition efforts.

Participant is frequently engaged in and contributes to the success of talent acquisition efforts.

Participant is consistently engaged in and is key to the success of talent acquisition efforts.

Efficiency

Participant's contributions were performed at an efficiency level appropriate for their position.

Participant's contributions were performed occasionally at an efficiency level above expectations for their position.

Participant's contributions were performed frequently at an efficiency level above expectations for their position.

Participant's contributions were performed consistently at an efficiency level above expectations for their position. 

INDIVIDUAL INCENTIVE COMPENSATION CALCULATION

 

Once the Incentive Plan Pool is calculated and Points are accumulated, the Incentive Plan Pool will be allocated to department team members based on their Weighted Points Earned.  Below is a demonstration of that calculation for a team member. 

Example

Points Earned

Department Weighting for Participant's Position

Weighted Points Earned

Total Department Weighted Points

Participant’s % of Department Weighted Points

 

Department Incentive Plan Pool

Participant’s % of Department Weighted Points

Participant’s Total Incentive Comp Earned

 

52

3.0

156

7,300

2.1%

 

$200,000

2.1%

$4,200

RETENTION – INTEREST & THREE-YEAR PAYOUT

 

In addition to awarding above and beyond contributions, the Incentive Compensation and Retention Plan is designed to incentivize and reward retention.  Therefore, Incentive Compensation will be paid out evenly over three years.  In years two and three, team members will be awarded 10% interest on their outstanding balance. (Note: those currently eligible for the FY24 Plan will continue to see current interest rates for years 2 and 3 of the FY24 payouts)

REALLOCATION

 

Team members must be actively employed at Boulay on the scheduled date of payment to receive their Incentive Plan payment.  Unpaid Incentive Compensation earned by a team member who departs Boulay will be reallocated to other team members who are still employed at Boulay and who earned points in the year the unpaid Incentive Compensation was originally earned.  Reallocated Incentive Compensation will be awarded to team members based on their recalculated percentage of weighted points.  Reallocated dollars will be paid out over the remaining installment periods and interest will not be paid on reallocated dollars.

Example

Participant A earned $6,000 in year one and they are in a department with a total of six Incentive Plan eligible team members.  Participant A receives their first installment payment of $2,000 in year one and then leaves the firm part way through year two.  Participant A is not eligible for any Incentive Plan compensation in year two and their outstanding $4,000 will be forfeited.  Those forfeited dollars will be reallocated to the remaining five Incentive Plan eligible team members who are still employed.  The way in which those five team members will be awarded the reallocation dollars will be based on their percentage of weighted points from the year in which the original compensation was earned.  For example, Participant B’s recalculated percentage of weighted points is 25.4%.  They will be awarded $1,016 and the payment schedule will be $508 in year two and $508 in year three.

A schedule with additional details pertaining to the example above can be found on the Incentive Plan FAQ page.

 

 

 

PAYMENT SCHEDULE

 

Payments occur annually on the August 15 pay cycle and plan participants must be actively employed to receive payment.  Below is a sample Payment Summary that will be provided to each Team Member annually, outlining their incentive compensation, interest, reallocated dollars, and upcoming payments.

Incentive Plan Year

8/15 - Year 1

8/15 - Year 2

8/15 - Year 3

Total

 

 

Year 1

Installment

Interest

Reallocation

Reallocation

$1,000

$1,000

 

 

 

$1,600

$1,000

$400

$200

$1,500

$1,000

$200

$200

$100

$4,100

$3,000

$600

$400

$100

 

 

Year 2

Installment

Interest

Reallocation

 

 

 

 

$1,000

$1,000

 

$1,600

$1,000

$400

$200

$2,600

$2,000

$400

$200

 

 

Year 3

Installment

 

 

$1,000

$1,000

$1,000

$1,000

 

 

Total

$1,000

 

$2,600

$4,100

$7,700

 

Disclaimer: The table is intended to demonstrate the various components of the Incentive Compensation & Retention Plan and how that translates to payments for team members.  This table is not intended to set expectations for dollars that will be rewarded, as that is dependent on an individual’s above and beyond contributions, as well as the Incentive Plan Pool. 

Do you have additional questions? See responses to commonly asked questions on the Incentive Plan FAQ page.