Media does not understand bonus strategy of employers?

NY Times:

Will Tax Cuts Mean Pay Raises? Bonuses Don’t Tell Us Much


Companies are announcing bonuses as a result of the tax cuts, but it remains to be seen how much of that money will filter through to workers in the years to come.
I was general counsel for a company that gave annual bonuses.  They were always based on profits for the preceding year and went to every employee in varying amounts usually based on their salary.  I saw them not only as a morale booster but also as an incentive to stay with the company.  Future bonuses will and should be based on profitability. 

The tax cuts will certainly be a part of that calculation in the future.  When you reduce the cost of taxes by roughly nine percent you give employers an opportunity to grow their company which will also lead to increased profitability and job creation.

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