Wat is Bonus pool, formulaic payout, discretionary bonus?

A bonus pool is the total variable pay a firm or desk awards for a year, set by a rule or a decision from its results. A formulaic payout pays a trader or team a fixed share of their own P&L, usually net of costs and of losses carried forward (chapter 3). A discretionary bonus is set by management’s judgement of the individual’s contribution, within the pool.