Which 7 figure job offer?
Hi, I have a few job offers I'm entertaining, but I've narrowed it down to two and I'm having a difficult time deciding so would love perspectives.
New employer: higher title, salary $750K, potential bonus $800k. The bonus is performance dependent and is majority based off the entire company's effort, less individual effort. The last 3 years the bonus has been closer to $140k, but it's been higher in the past. The pay is obviously tilted towards stability and I would not expect there to be much meaningful growth, if any, in total comp any time soon. Work life balance they profess to be good and weekends are protected.
Current employer: They are rebidding me in hopes of me staying. Current base is $300k, bonus they are offering is $800k. They will not promote me now, and will not guarantee I will receive one, but I'm told I'm at the top of my group's list to be submitted for this year. If I do in fact get promoted, I would assume my salary moves to $400k. Bonus is based on subjective individual effort and they could easily cut my total comp in future years. One manager told me comp tends to stay +/- 10% year over year. That probably feels right, but I've seen it take larger hits, down 17-18%. Even down 20%, that would put my all-in comp in line with the new job on bad years.
The main difference is the work life balance is stupid, think 16-18 hours a day, and 5 to 7 days a week, indefinitely. And this pace likely will not let up for years to come. But there is the potential to keep growing total comp. Next step function would be closer to $1.5m, then $2m, and $5m. It would take years to get there, but there's at least a path to keep growing. I have a great relationship with my manager and team, and generally have built up a good reputation already.
Sorry for the tldr, but I'd really love to know what others' perspectives are.
Based on the most helpful WSO content, here's a breakdown of your situation and key considerations to help you decide:
New Employer: Stability and Balance
Current Employer: High Risk, High Reward
Key Considerations:
Work-Life Balance: If maintaining a healthier lifestyle and having time outside of work are priorities, the new employer offers a clear advantage. The current employer's pace is unsustainable for many and could lead to burnout.
Compensation Growth: If maximizing long-term earnings is your primary goal, staying with your current employer offers a clearer path to higher compensation. However, this comes with significant personal sacrifices and risks.
Stability vs. Risk: The new employer provides more stability in compensation and work-life balance, while the current employer offers higher potential rewards but with greater volatility and personal cost.
Personal Goals: Reflect on your long-term goals—whether they are financial, personal, or professional. If you're aiming for a more balanced life, the new employer aligns better. If you're willing to endure the grind for the chance at higher earnings, staying with your current employer might make sense.
Recommendation:
If you're at a stage in life where work-life balance and stability are becoming more important, the new employer seems like the better choice. However, if you're still motivated to push hard for the next few years and prioritize financial growth above all else, staying with your current employer could be worth the grind—provided you're confident in your ability to sustain the pace and secure promotions.
Ultimately, the decision hinges on your personal priorities and tolerance for risk and workload.
Sources: Work/Life Balance - Hours, 2 successful years at the firm, 2 years of 0 bonus and minimal pay rise, Where is the compensation in banking? Is it worth taking a pay cut for the long-term prospects?, I'm tired of Top Pay questions, Who is happy & satisfied with their current role?
How old are you and what kind of HF is this? If you're young and don't have a spouse and kids, maybe keep doing the old job, but if you have a family, probably try the new one.
How long have you been at the current employer? If you’ve built a meaningful track record over three plus years I would move.
Hey, congrats. I'd make the switch. Over 2x the base. No weekends. Did you get it in writing? I'd have an employment attorney compare both, and negotiate for you if needed. You have the most leverage now. Companies entice with bonuses but put in tricky language to make it easy to not pay in the end.
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