A year-end bonus is a financial reward given to employees at the end of the fiscal year, typically as a way to recognize their hard work and contributions to the company. This bonus can vary in amount and is often based on individual performance, company profits, or both. Companies may use year-end bonuses to motivate employees and improve job satisfaction. These bonuses can be in the form of cash, stock options, or other benefits, and they are usually distributed in December or January, aligning with the end of the calendar year or fiscal year.