Resigning before bonus? Private Credit Offer
I am an Associate 3 (Corp Banking) at a large European Bank in London (BNP/HSBC/Barclays) with an offer from a MM Private credit shop with a deadline to sign the contract by end of this week.
My bank announces bonuses at end of Feb and pays out end of March! I My question is will I be paid the bonus if I resign after bonus announcement but before the it hitting my account?
The only leverage I have is that my firm has a 3 month notice period and given the the staff shortage/deal flow plus that I am leaving for buyside my team will expect me to work the full 3 months.
I expect bonus around 30%-40% of base - so not huge but still a significant amount to give up after having to work full 2021 and prob all the way until May 2022. Any experience/thoughts on this?
Yes your bonus will not be paid if you resign post announcement but before it hits your account.The credit fund should know it as I assume you told them. If not, let them know and they will allow you to wait until such time. If they don't, they are probably not people you want to work for.
Unclear why you would resign upon signing the contract, is it to start the notice period asap?
Banks normally don’t make you work your notice if you go to a potential client ie buyside. Everything is a negotiation: make sure you take a good break before you start into the new role.
Either they buy your bonus out or they already pay for significantly higher than your current total comp. Otherwise up to you really, depending on what matters more, bonus and current role or the new role potential.
even if you resigned on the day you were due to be paid your bonus, if the cash hasn't hit your acct, you will not get it.
Thank you for the responses. They fund has offered to pay 50% of last year bonus as sign on and yes TC at the fund will be significantly higher.
My bank will make me work the notice (speaking from experience) - I am happy to give up the bonus if they put me on a 3 month gardening leave. However, just find it odd having to work until May if they decide to rescind the bonus after announcing it.
I will try and negotiate and find a middle ground.
Not trying to be mean
What is the point of "I am an Associate 3 (Corp Banking) at a large European Bank in London (BNP/HSBC/Barclays)" if your title suggests you're at HSBC
HAHAHAHAHAHAHAHAHAHAHA
Definitely get them to buy out your bonus. Tactful way to say that is “is your firm open to providing a makewhole for bonus in my current role”. Most of the time they would even if the overall comp is higher, as it’s a fairly common issue. If they want you to absolutely start before your bonus payout date, you may even have some leverage (depending on how you stacked up against other applicants of course). Never hurts to ask.
Know this is off topic but could you please give an insight as to how your interview process was for the Private Credit position? Also looking to make the switch
Was contacted by a HH about the position. Process involved a 4 rounds of interviews (standard stuff, talking through my CV and deal experiences, a few competencies, technical and market knowledge questions). There was a take home case study and a final partner interview.
Can you provide insight on what base salary to expect for associate level at a credit fund?
thanks
I am in London. Associate base salaries are around £80k to £110k mark for MM Private Credit. Bonus is generally 50% to 100% of base
Surely you can sign the contract at the end of this week for an April/May start date and only resign at the end of March. No-one can force you to work through your notice (well in theory they can but most banks don’t).
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