Comment Re:If it's 0 to 60 percent... (Score 5, Informative) 52
I'm a manager at Microsoft and I can clear this up a bit, because it sounds totally random.
Your performance review determines your 'rewards', which is your 'merit increase' (salary), bonus, and stock award. Let's say you make $200k a year, and your maximum bonus range is up to 20%. Your target/expected bonus is half of that, so 10%. If you get a "100", this is really "100%" of your expected bonus, so you get 10% of $200k, or $20k bonus. If you have a great performance year and your boss gives you a 140, then you get 140% of your expected bonus range. This means that your top bonus percentage is "200%" of your expected bonus, aka your max bonus. I think this is purely for psychological reasons - people hear that they got a 100% and think that's awesome, vs hearing they got a 50% and being disappointed.
The other thing is that you can't give someone a bonus of 107 or something. It's only in 20-point increments and there are certain ones that (at least in my experience) aren't available, so the options are: 0 [you're being managed out], 60 [you're being given a stern warning], 80 [slightly underperforming, but not a big deal], 100 [expected - this is probably 50% of all employees], 120 [overperformed], 140 [wowowow], 160, 180, 200. The higher numbers are reserved for exceptional circumstances OR lower level employees who are early in career, so giving them a 40% larger bonus isn't that expensive for the company.
There's also quite a lot of wiggle room on the final merit/bonus/stock calculation, where your manager might give you a 120 - but then the overall studio or group or org or the whole company get slightly adjusted along the way. If you're in Azure, you might get a larger bonus all other things being equal over someone working on HoloLens or Xbox.