The simple truth

Revenue grows the company. After-tax profit funds the plan.

The bonus system is not based on gross revenue alone. Gross revenue tells us we are growing. After-tax profit tells us whether the company is actually creating extra cash after payroll, delivery costs, overhead, and taxes are covered.

Collected revenue
Costs + taxes covered
After-tax profit
Pools
Core metric
After-tax profit

This is the monthly allocation cash. It is the number that gets split into team upside, debt cleanup, and company safety.

The goal is transparency without putting the company in a risky cash position.
01
Bonus pool

Team upside from real after-tax profit. Tracked monthly, reviewed quarterly, and paid only after gates are met.

02
Debt cleanup pool

Cash set aside to remove company pressure and strengthen the business. This accelerates after the reserve is funded.

03
Savings reserve

Builds until Tekton has 90 days of operating expenses protected. After that, overflow goes to debt cleanup.

Current allocation rule

As after-tax profit grows, the bonus share can grow too. Early stages protect debt cleanup and company safety first.

Under $5k/moBonus pauses. 50% debt cleanup, 50% savings reserve.
$5k-$10k/mo10% bonus, 45% debt cleanup, 45% savings reserve.
$10k-$15k/mo15% bonus, 35% debt cleanup, 50% savings reserve.
$15k+/mo20% bonus, 30% debt cleanup, 50% savings reserve.

Quarterly payout gates

Bonuses are calculated monthly, but they do not pay out monthly. They are reviewed after each quarter closes.

CollectedRevenue has to be collected, not just sold or invoiced.
RetainedClient revenue needs to survive the 90-day hold.
HealthyDelivery, retention, tax reserve, and cash gates need to be green.
ApprovedQuarterly pool is reviewed before payroll or contractor invoice payout.

90-day reserve rule

The savings bucket does not grow forever. It builds until Tekton has 90 days of current operating expenses protected. Once that target is funded, the savings allocation redirects into the debt cleanup bucket.

Example monthly expenses
$28.6k
90-day reserve target
$85.7k
After reserve is full
Debt ↑
If expenses grow
Cap updates
Reserve target changes when the company’s monthly expense base changes.

Example growth projection

This is a projection only, not a promise. It assumes Tekton adds 3 retained clients per month at $2k/month each, with 30% added fulfillment cost and a 31% tax rate.

PeriodCumulative bonus poolCumulative debt poolCumulative savings reserveWhat it means
End of Q1$4.4k$11.9k$15.5kPlan is active, still early.
End of Q2$16.0k$29.3k$44.5kReserve is building. Debt cleanup is moving.
End of Q3$32.8k$55.3k$85.7k90-day reserve funded. Savings cap reached.
End of Q4$54.8k$143.4k$85.7kSavings overflow accelerates debt cleanup.
Actual pools depend on collected revenue, retention, delivery cost, taxes, and company cash health.

What the team can expect to see

Simple progress, not private finances.

VisibleMilestone progress, collected revenue range, current gate, bonus pool estimate, and what moves the score.
Not visibleBank feeds, account balances, owner draw, personal details, debt specifics, or individual compensation.

The operating promise

If the company grows safely, the upside grows with it. If the company is not safe yet, the system shows why.

The goal is not hype. The goal is a scoreboard everyone can understand and trust.