This study investigates the distribution of bonus payments within and between firms, shedding light on the intra-firm and inter-firm dynamics that shape compensation structures. Analyzing bonus payment dispersion provides insights into equity, fairness, and efficiency in compensation practices. We explore factors influencing the dispersion of bonuses, including organizational hierarchies, performance metrics, and industry norms. Through empirical analysis and theoretical frameworks, we uncover patterns of bonus distribution that reflect broader trends in corporate governance and employee incentivization. By understanding the complexities of bonus payment dynamics, firms can design compensation schemes that promote employee motivation, organizational performance, and stakeholder satisfaction.

Bonus payments, Compensation structures, Intra-firm dynamics

Autor DH, Katz LF, Kearney MS (2008) Trend in US wage inequality: revising the revisionists. Rev Econ Stat 90(2):300–323

Baker G, Gibss M, Holmström B (1994) The Wage policy of a firm. Q J Econ 109(4):921–955

Balkin DB, Gomez-Mejia LR (1987) Toward a contingency theory of compensation strategy. Strateg Manag J 8(2):169–182

Balkin DB, Gomez-Mejia LR (1990) Matching compensation and organizational strategies. Strateg Manag J 11(2):153–169

Baron JN, Pfeffer J (1994) The social psychology of organizations and inequality. Soc Psychol Q 57(3):190–209

Barth E, Bryson A, Davis JC, Freeman R (2016) It’s where you work: increases in earnings dispersion across establishments and individuals in the USA. J Labor Econ 34(2):s67–s97

Birkner, G. (2016). Teamgeist zahlt sich bei Bosch aus. In: Comp&Ben, col 3, pp 24–26. http://www.compbenmagazin.de/wp-content/uploads/sites/7/2016/07/8_Artikel_Teamgeist.pdf

Bloom M (1999) The performance effects of pay dispersion on individuals and organizations. Acad Manag J 42(1):25–40

Bloom M, Michel JG (2002) The relationship among organizational context, pay dis-persion, and among managerial turnover. Acad Manag J 45(1):33–42

Boyd BK, Salamin A (2001) Strategic reward systems: a contingency model of pay system design. Strateg Manag J 22(8):777–792

Card D, Heining J, Kline P (2013) Workplace heterogeneity and the rise of German Wage inequality. Q J Econ 128(3):967–1015

Danilov A, Harbring C, Irlenbusch B (2014) Helping in teams. IZA Discussion Paper, No. 8707

Dohmen TJ (2004) Performance, seniority, and Wages: formal salary systems and individual earnings profiles. Labour Econ 11(6):741–763

Dohmen TJ, Lehmann H, Schaffer ME (2014) Wage policies of a Russian firm and the financial crisis of 1998: evidence from personnel data, 1997 to 2002. Ind Labor Relat Rev 67(2):504–531

Eriksson T, Lausten M (2000) Managerial pay and firm performance—Danish evidence. Scand J Manag 16(3):269–286

Fama EF (1980) Agency problems and the theory of the firm. J Polit Econ 88:288–307