The worst off may even receive a “doughnut” — slang for a zero bonus — though this sits in a legal and reputational grey zone. Even though incentive awards are formally discretionary, firms worry that paying literally nothing could be construed as a breach of an implied contractual term. As a result, many maintain an unofficial floor, usually about 15 per cent of the prior year’s bonus. It is low enough to signal dissatisfaction, but high enough to mitigate legal risk.