4/28/12

Hi everyone,

Right now I am an associate at a private equity firm and will be leaving to attend business school in August. My bonus (and everyone else's) is paid at calendar year end (Dec. 31st), at which time I'll be don working and in school. Obviously I think I deserve to get some type of bonus for working the first 8 months of this year, but I am unsure what happens in this situation.

Has anyone been in a similar situation or know someone who was? Did the PE firm give a partial bonus? Most advice that I found on here said that 1) bonuses are used as incentive (so that does not help me since the firm does not care to incentivize me since I'm leaving) and 2) that you should see if your new firm will cover your bonus (which also doesn't help since I'm not going to a new firm).

I'm planning to work as an entrepreneur or go into a strategy type role after business school, so please don't bother to say "who cares, you will make tons of money in PE post-mba."

Thanks guys.

Comments (9)

Best Response
4/29/12

The standard practice is to pay you a pro rata bonus for the months that you did work. However, you may not get paid this bonus until the standard bonus cycle, meaning, they might not pay you out until the following March. I agree with TheKing's recommendation to discuss it with someone sooner rather than later. Perhaps do it in conjunction with your discussion regarding your last day at the company.

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4/28/12

who cares, you will make tons of money in PE post-mba.

4/28/12

defer entry, go on vacation for 9 months

problem solved

next

4/28/12

Ask them about it.

4/28/12

Thanks, but does anyone out there know if there is somewhat of a standard procedure for this? Surely is must be somewhat common.

4/28/12

i am in banking - guy ahead of me was in the same situation (associate in levfin) - he was paid a pro-rated bonus. probably differs from firm to firm.

4/28/12

Does your firm want you to leave (as in, they have a 2 years and out program where all pre-MBA associates are expected to leave after 2 years)? If so, I can't imagine not giving you a pro-rated bonus. Or, were you given the option to be directly promoted? If so, I can imagine them being mad that you did not accept their offer and would try to disincentivize you from leaving.

4/29/12

It is not really a 2 and out program, but they have known for a while that I was planning to go to business school because I asked for recommendations a few months before I even applied. Since they knew that I was not planning to stay, the direct promotion discussion never really came up, but I feel like they would have liked me too. Overall I think they would like me to stay (its easier than having to go and hire someone new and pay a signing bonus and take the risk or whatever), but I wouldn't say they are mad that I'm leaving.

4/29/12

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