Paramount just told employees what their year-end bonuses are - and changed how they are calculated

"Given the unique circumstances of 2025, we will not be applying individual differentiation this year. As a result, everyone will receive the same Individual Multiplier and Business Multiplier, based on overall fiscal year 2025 performance."

"Paramount told eligible employees on Monday morning that the 2025 business multiplier is 94%, according to internal documents viewed by Business Insider. That's down from 136.7% in 2024, per Paramount's proxy statement last year and three employees. That's a year-over-year decline of more than 30%."

"For years, Paramount has given eligible salaried staffers a year-end payout called a Short Term Incentive Plan, or STIP, that's based on their base salary, their individual performance, and the business's performance. The bonus is calculated by taking the so-called STIP target amount times the individual and business multipliers."

Paramount Skydance restructured its Short Term Incentive Plan (STIP) bonus calculation for 2025, removing individual performance differentiation following the company's merger completion. All eligible salaried employees now receive a uniform 100% individual multiplier regardless of performance ratings, as employee reviews were deprioritized during the merger transition. The business multiplier decreased significantly to 94% from 136.7% in 2024, representing a 30% year-over-year decline. This change particularly impacts high performers who previously earned individual multipliers exceeding 100%. The company cited unique 2025 circumstances for implementing uniform multipliers across the organization.

Read at Business Insider