Large firms will do 'bonus targets' as some % of your base salary. Goals are established based on measurable metrics that you probably won't feel like you can directly do much about, such as average revenue per customer. If the company hits the goals, bonuses pay at some multiple of target. E.g., 10% bonus target, it's a good year so bonuses pay double = you get 20% of your base as a bonus. Managers will be given both a higher base salary and a higher bonus target.

Small firms are all over the map, from nothing to "finance industry".

Glassdoor suggests that no, this amount is not normal. But I wouldn't be at all surprised to see ~$10k be normal from a ~10-15% target. And it is certainly possible at a big company that does this sort of thing to get classified as a manager and have a 15% target payout double on a good year for 30% of base = a free car.

Avoid bonus systems. Bonus systems do not work out well for non-executives. Look at the story again: the kid made out better than anyone because his $175/hr is his for as many hours as he works no matter how the company performs that year. He gets his "bonus" every hour he works. The senior dev has a whopping 30% of his yearly comp tied up in a nebulous bonus that probably gets paid out far enough into the next year that he's already earned about half of his next bonus by the time he actually gets it (i.e. makes leaving expensive).

The bonus system was originally set up for high up executives to tie their comp more exactly to company performance since they are responsible for it. As a dev you are not responsible for company performance. Are you able to sack the sales team if you feel that they're not competent? Are you able to change company direction? You can't be responsible for something you have no ability to change. People saying you do are just manipulating you to their own advantage.

"The bonus system was originally set up for high up executives to tie their comp more exactly to company performance since they are responsible for it. As a dev you are not responsible for company performance."

As a dev, we might not be "responsible", but we sure as hell have an impact on the performance of the company.

So many people overlook the fact that we design, build, implement, enhance and support the products that earn the company revenue. The products might not be our idea, but we are the ones executing them. And in true HN fashion, we all know an idea is nothing without the execution.

You can affect it, but that's not what the bonus system is about. It it were you would "deserve" a bonus for simply not destroying the place, since this is the only thing really somewhat under your control.

Everyone, down to the cleaning service, has some effect on the company. Otherwise they wouldn't be there. Should a big chunk of everyone's compensation be based on company performance? If you do that then we're all suddenly big risk takers, and therefor vastly underpaid.