What you need to know
Our compensation philosophy is simple:
- We remain effectively referenced to the external market.
- We pay based on an employee’s experience and contributions to Sandia’s success.
- We pay for performance.
- We work to ensure the integrity of the compensation system.
There are different types of compensation, and your eligibility for them is based on your job role and performance.
Base Compensation
Your base compensation is determined by many factors, including your experience, and education.
Every position is assigned to a market band, which provides guidelines for the pay range for jobs at Sandia.
Merit Increases
Merit increases are awarded annually, to build on your base salary and recognize your performance and contributions to Sandia’s success.
Variable Pay (Non-Base Compensation)
Variable pay is an annual one-time payment used to recognize employee performance and contributions. Variable pay is tied to the Annual Compensation Review process.
There are two variable pay plans:
This plan is designed to reward Sandia’s highest performing managers.
The management incentive plan includes all levels of management with a performance block rating of 1, 2, 4, or 5.
Your annual award is calculated based on your annual base salary, an individual performance modifier, and Sandia’s Performance Evaluation Report (PER) score modifier.
Sandia generally pays management incentive plan awards in February.
This plan is designed to reward Sandia’s highest performing individual contributors.
The high performance incentive plan includes all non-management employees in an active, regular, non-represented role (exempt and non-exempt employees) with a performance block rating of 1, 2, or 4.
Your annual award is calculated based on your annual base salary as of September 1, and an individual performance modifier.
Sandia pays high performance incentive plan awards in January.
Your performance matters
Your performance – as measured through the Sandia Standard Goal, SMART Goals, and Sandia Values – influences your performance block rating. Your performance block rating is a component of your annual merit and variable pay award calculations.
Check out performance management to learn more.
Spot Awards
In the spirit of pay for performance, spot awards give managers the flexibility to recognize any employee’s contributions at any time.
A spot award is outside the annual performance management and review process.
You can receive more than one spot award, as long as you haven’t already received one for the same purpose.

Support for issues big and small
Financial wellness resources support you and your family – at every stage and age.
Quick Tip
Getting paid for your time
You may be eligible for several additional types of compensation – outside of your base salary – including shift differentials and overtime. Be sure to check out Time & Attendance to learn more.