Lots of Discretion
You do not tie bonuses to the overall financial objectives of the organization. You "wait and see" whether bonuses will be paid and then subjectively determine amounts.
You're usually uncertain about financial performance so your goals are set fairly low. Thus, you almost always pay some bonuses, even in slow years.
You establish a bonus pool as part of your annual budgeting and planning process. The pool represents the sum of employee target awards.
Your plan is carefully designed to be both realistic and challenging. It establishes a firm baseline performance level for minimum payments and provides significant upside potential for the achievement of stretch goals. There is no cap.