6.07—Exemplary Performance Bonus

Effective: 03/01/2010
Senate Proposal: No
Responsible University Officer: Vice President for Administration
Responsible Office: Human Resources

Policy Statement

An exemplary performance bonus is a monetary recognition awarded to eligible employees for performance substantially beyond the expectations of the position.

Policy Requirements

Exemplary performance bonus requests require:

  • documentation of exemplary performance and employee performance of at least "proficient" level,
  • approval of supervisor, department chair/director or dean (as applicable) and Vice President(s), and
  • at least two signatures (approval is required at least through Vice President).

Bonus payments are taxable at the time of payment.

Bonus payments can not be made from sponsored funds.

Reason for Policy

Established to provide an incentive for and means of rewarding exemplary performance of faculty and staff. The bonus policy supports the University's Strategic Plan, Goal 1: 1.1, which states the University will "provide competitive compensation, recognize and reward successful faculty and staff."

Monetary recognition is not added to institutional base salary (IBS).

Exemplary performance may include a team effort.


Union Employees are not eligible to receive exemplary performance bonuses.

The exemplary performance bonus is not to be used as recognition of either lifetime achievement or years of service.


Office/Unit Name Telephone Number
Human Resources 487-2280


Eligible Employee - Regular full- and/or part-time non-union employees.

Exemplary performance:
Faculty: substantially above and beyond documented expectations of faculty's position such as:

  • substantial contribution to the fulfillment of goals, mission and objectives of the University, office of the dean or department;
  • provide creative, innovative ideas or solutions using strategies which increase the efficiency and effective use of resources which strengthen the image of the University;
  • demonstrate outstanding results in the areas of teaching, research and service.

Staff: overall performance is rated at the "proficient" level or better; and one or more of the following is true:

  • performs substantially above and beyond expectation on a specific goal;
  • makes a contribution that has a significant impact on the fulfillment of university or department goals, mission or objectives;
  • goes substantially above and beyond the normal requirements required by their position.

Institutional Base Salary (IBS) - Annual compensation paid by the University for an employee's appointment, whether that individual's time is spent on research, instruction, administration or service. IBS does not include additional, bonus, or faculty summer compensation. IBS also excludes any income that an individual is permitted to earn outside of duties for the University.

Intra-university Consulting - Consulting which occurs between two separate and distinct departments within the University. For purposes of this policy, research centers which are functioning units within a school or college are not separate and distinct departments.


Department Chair/Director, Dean and Vice President(s) (as applicable) - Reviews the request and signs the Bonus Request Form indicating approval.

Eligible Employee's Primary Department - Completes the Bonus Request Form, ensures appropriate approvals (of at least two signatures) on the request form, and ensures written justification is included with the form.

Human Resources - Receives the completed form and reviews for accuracy and appropriate signatures, obtains provost/vice president signatures as applicable, and processes request for payment.

Supervisor of Eligible Employee - Provides documentation of the employee's performance as being of at least "proficient" level and the exemplary performance initiating the bonus request.


In support of this policy, the following procedures are included:

Forms and Instructions

In support of this policy, the following forms/instructions are included:



Adoption Date

02/23/2010 Approved by VP for Administration.


3/19/2018 To reflect current practices, changed "Represented Employees" to "Union Employees." Changed "non-represented" to "non-union."
11/14/2017 To reflect current practices, "Represented employees, fixed term, and temporary employees are not eligible to receive exemplary performance bonuses." changed to "Represented employees employees are not eligible to receive exemplary performance bonuses."
04/10/2017 Transfer of policy page from HTML to CMS. Business and Finance numbers renamed from "2.6000" to "6. Human Resources". Specifically from "2.6007—Exemplary Performance Bonus" to "6.07—Exemplary Performance Bonus".
05/08/2012 To reflect current University titles and practice, MTU is now Michigan Tech and the email address for questions is now hbwebmaster.
06/22/2010 Removed the word "Hourly" from the Exclusions.