US Army Takes Cue From Wall Street For Officer Bonuses

The U.S. Army will soon determine bonuses for its warrant officers through an auction where high-ranking service members will bid against each other.

The Army announced the auction in a Thursday press release, stating that the “innovative” new auctions introduce “a market‑based approach to retaining senior technical talent while ensuring responsible stewardship of taxpayer dollars.” The system’s rollout will start in March, Task & Purpose reported, citing an Army official.

Under the new system, when warrant officers are eligible for a promotion, they would put forward a “confidential bid indicating the minimum monthly bonus they would be satisfied receiving” in exchange for a six-year active-duty contract extension, according to the release. Task & Purpose likened the auctions to those conducted on the e-commerce website eBay.

The program discourages bidding too high as officers who do so could run the risk of not receiving a bonus altogether.

“Overbidding increases the risk of missing out on a bonus, while underbidding could result in commitment to a lower rate,” the release continues. “Army leadership believes the system rewards transparency and encourages officers to carefully consider the compensation that would make them comfortable with continued service.”

The Army did not immediately respond to the Daily Caller News Foundation’s request for additional comment.

“Once bids are submitted, the Army will determine a single market‑clearing bonus rate that retains the maximum number of qualified warrant officers within the available budget,” the press release reads. “Every warrant officer whose bid falls at or below that rate will receive the same bonus amount. This means that warrant officers who bid lower than the final rate will still receive the higher, market‑determined bonus.”

Army economist Lt. Col. Tim Justicz — the press release’s author and one of the auction system’s architects — said his program’s “simple” goal is to reward “as many qualified warrant officers as possible with the most competitive bonus the budget allows.”

Lt. Col. Sherri Bowling, the Army’s Chief of Warrant Officer Retention, said that the auctions will give officers “a direct voice in their career path and ensures we are making the most effective use of our resources.”

“The Warrant Officer Retention Bonus Auction reflects a smarter, fairer approach to talent management—one that aligns incentives, respects taxpayer dollars, and recognizes the critical role technical experts play in the force,” the release adds.