A performance bonus is a financial reward given to employees based on their work performance or the company's overall success. These bonuses are often tied to specific goals, such as meeting sales targets or completing projects on time. They serve as an incentive to motivate employees to achieve higher levels of productivity and efficiency. Companies may offer performance bonuses annually, quarterly, or after completing specific projects. The amount can vary widely depending on the organization and the employee's role. Performance bonuses are commonly used in various industries, including finance, sales, and technology, to encourage exceptional performance and retain talent.