In this episode of OK at Work, attorneys Sarah Sawyer and Russell Berger from Offit Kurman discuss the importance of thoughtfully structured bonus plans for employees and executives. The discussion covers the goals behind bonus plans, such as motivation and retention, and emphasizes the importance of aligning these plans with organizational objectives for 2026. They highlight the need for clear and effective communication to avoid legal risks and ensure that employees are properly incentivized. As the end of the year approaches, they encourage employers to reassess and potentially update their compensation plans to support their strategic goals for the coming year.

00:00 Introduction to Bonus Plans

00:47 Key Considerations for Bonus Plans

01:00 Aligning Bonus Plans with Organizational Goals

01:43 Clarity and Communication in Bonus Plans

02:38 Legal Risks and Clear Communication

03:40 Conclusion and Final Thoughts