Quitting before getting my commission. Is there anyway i can get that?
Hi WSO,
I currently work at CRE sales brokerage firm and have been doing well here for about a year now. I recently got an offer from a reputable mortgage brokerage team and will be one of four financial analysts. Although the pay is low, I think it would be a great opportunity to enter into CRE lending realm.
Here is the dilemma though, there is a sale transaction that I've originated solely that is now in contract ($200,000 gross commission and i'll be getting 15% of it, which I think is ridiculously low. I practically made my boss 4 times my salary... (45k). Regardless, I just got fed up with it and want to get out of here ASAP.
So my question is, is there anyway I can get my commission after I leave the firm? I think the main problem is that I'm not a independent broker, rather an employee of a broker, so technically, they wouldn't consider this deal as my origination but my boss's. Do you think there is anyway I can get what I've earned?
Thank you in advance. I would deeply appreciate any tips or guidance....
I don't have any first hand knowledge of this, but my guess is that just like a bonus payout, you have to be currently employed to get it paid out. You can "earn" a bonus by being at your company for a full year, and then leave before it's paid out and you won't be getting a cent of it. It's not fair, but it's how companies operate to try to keep you sticking around longer for your payout.
I think if this is specifically a commission rather than a performance-based bonus, you have a chance. If you are 100% definitely going to be leaving before getting paid, you certainly are not hurting anything by trying to have a conversation with your boss about it. Or much better yet, go to your boss's boss, if that is possible. When would you get paid the commission if you were not leaving? Upon completion of the deal (and when is that going to close?)
It will close around Jan or Feb. I don't think this mortgage brokerage firm would wait for me that long, but who knows... Man, this sucks...
Depends, if its technically your bonus and your name isn't on the commission agreement I'm inclined to think you're fucked.
Well, at our firm, we call everything commission. So on the pay stub, it only says Salary and Commission, but no bonus or anything like that. I don't know it means anything, but wanted to let you guys know....
Do you have any fee agreement in writing between you and the client? or you and your boss?
If he's a decent human being he'll send you a check when the deal closes. Otherwise don't get too excited you might not get a penny. I know a guy who procured a deal in brokerage and left due to a ill/bed ridden relative. He needed to get an hourly wage to pay for the medical care. They agreed that if that deal close while he was gone he would be cut in on at least a fair referral type fee.
That deal netted his senior broker $100k and he barely saw a dime (1% referral?? I think). Moral being, in brokerage GET THE FEE AGREEMENT IN WRITING. Doesn't matter if it's your between your senior or the client. I'd chat with your manager and try to get it hashed out in writing. Good luck though.
Only official document I have with client is the listing agreement between the company and the client. Well, between my boss and I, he did send me an email a month ago saying I will be getting 15% because I've originated the deal. However, 'officially' it is originated under his name, since I'm his employee.... Would that grand me any power under court of law?
I highly doubt you'd be able to get either a bonus or commission if you leave unless you can work it out with your boss in writing. If the deal hasn't closed that means no one has earned anything yet so I'd find it very odd if you could get anything from it. I'm not well versed in this for more entry level positions, but at more senior levels when you leave a bonus, options, or deferred comp on the table when you're poached you just ask the poacher to make you whole as a condition of accepting the new position.
Is $30k worth mentioning to the new company as something you're leaving on the table by leaving and is there a chance you could work that into a signing bonus or additional comp? I kind of remember your previous posts on how badly you want to leave your current role so if you really want to leave you may not have a great hand to play.
Good luck.
I don't think they will match 30k bonus, the salary they offered is barely above that... my only hope is to pray that my boss will be nice enough to cut me some check, which I highly doubt...
i disagree with above comments. I just left brokerage and my commissions are covered on specific transactions for a specific window of time. Most larger firms make you sign something that lists all of these transactions as part of your exit agreement. However, your partners have to be on board for this to happen. Theoretically, my partners could have screwed me and given me nothing. It all depends on your team dynamic. This has absolutely nothing to do with HR and more to do with the individual exit agreements you negotiate with individual partners/senior agents. if you originated the transaction, you should be entitled to some of the commission. unless the deal is closed, once you leave your senior partners will have to work on the deal, so there should be a step-down schedule per various time periods that outline your declining percentage due.
Why do you not think they will wait? Its worth a shot to ask for an extension. Just say you got year end closing stuff you need to wrap and that you would like to have a fresh start after the holidays. If you want to sound good, just say you need to wrap all this up since you want to make sure your existing group isn't burdened by your work and that you want to leave on good terms with them. This way you get an extension and you make a good impression with the new firm.
Et ab laborum sequi. Dolores optio consequatur fuga ut. Dolor enim modi dolorem fuga. Vitae ullam minus impedit dicta consequuntur ut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...