Does HR check deferred comp / comp from previous firm?
Wondering what type of verification process typically used to check what your deferred comp is from prior firm? Don’t want to lose leverage into comp negotiation with new firm.
Will probably ask you for your payslips and/or your bonus/carry agreement; though typically happens right at the end of the process
There’s a difference between what you’ve been paid in the past and what you’re expecting this year. The former you should be reasonably truthful, the latter a bit more artistic discretion
So they’ve asked for # for deferred comp. I don’t have any in writing, but there is a sizable amount expected based on timing of certain investment exits. The new firm is planning to buy me out of some of that deferred comp. I’m just wondering if they will know that the number is “expected” vs in writing
I don’t think there’s a right answer but how I’ve approached it in the past was to say: I currently have x amount of deferred comp / carry of which I expect to receive y amount this year, and for this year I am expecting z amount of bonus / carry. Given the comp is deferred and tied to certain exist that may or may not realise, I am willing to take a [5%-50%] discount.
I was as truthful as I could be in the negotiation and give them the full data points they have, as they will have their own internal budget and benchmarks across the street that will help them make an assessment.
The flex I built in was I used the higher end of my own expectations for each of the number above, including the forward looking bonus because ultimately that’s what it’ll cost for me to consider moving.
Do not offer up the discount, have them ask for it (they probably will or will tie the rest to performance). If they really want you though there is a decent chance they cash you out.
Dont theese places do a full buyout? Why would someone lose his previous bonus or a part of it?
In the past comp verification has been the last step of the process and have been asked for bonus slips, contracts, and more. Do not lie about any hard number but inflating future expected numbers is expected and adjusted for.
Make sure anything they ask you for in the verification process, you ask for an exception to share that information with future employers in your new contract (new bonuses, contracts, track etc should be fair game to share and not covered under confidential information, if they asked you to share this). Helps keep them honest about asking for only what they need and you protected to recruit in the future.
Dang that's both smart and reasonable.
And when they ask an analyst about past year bonus figures in the interview, they actually expect proof later? Assumed this was a legal/regulatory/compliance no-go.
If you use the numbers in negotiations (which is always their interpretation in this case) they are in the clear to ask for verification.
You can always play the card of exercising your right to never disclose from the start, in which case they will not feel obliged to buyout missed compensation. But once you've put a number into play expect it to be verified.
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