Firm legally bound to pay out my bonus if I give them two week resignation notice post-performance review but pre-payroll date?
Hi, guys.
I'm currently working at a small boutique I-banking shop in US.
I'm supposed to have my performance review in the next few days during which my exact bonus number will be determined - this bonus is supposed to hit my bank account on 15th.
If I give my firm two week resignation notice a few days after my performance review but before my bonus actually hits my bank account, is there a chance I will lose my bonus?
In other words, do you guys think there is possibility of my firm not honoring my bonus figure?
Please let me know what you guys think.
Thanks!
Wait until the bonus hits your bank account before resigning. Unless there was some contractual guaranteed bonus it is discretionary, they aren't bound to anything and they also aren't a charity so you probably won't get anything.
Depends how harsh they want to be, but I think it's definitely a possibility they do not honor your bonus. Bonuses are generally considered discretionary and most firms are not required to pay them.
Why would you not wait the extra week between performance review and bonus payout?
From what I've seen, wait till after the bonus hits your account. Unless there are clawback provisions or something you signed which obligates you to pay it back once it has been paid out (for any number of reasons) there isn't much they can do. I've seen that happen constantly here, bonus gets paid out and job openings magically begin appearing.
As always though, if you are really worried I'd consult a lawyer.
Just wait. It's less than two weeks until it hits your account so why gamble? There's a decent chance they'll ask you to leave when you give your notice anyway.
It's not like you're entitled to a bonus. The whole purpose of the bonus is to compensate for over-working you and making sure you don't rage quit. If you're quitting anyways, what incentive do they have to pay you?
I wouldn't quite phrase it this way as I don't completely agree. I don't think anyone at a bank cares how over-worked an analyst is, as all employees are disposable like ziploc bags.
I would say the whole reason a bonus is given is to ensure that you continue doing what you're doing, assuming that what you've been doing is desirable.
Like if I go to a restaurant and had a great waiter, I'm not giving them a fat tip because they did a great job necessarily, but more that I want them to provide me the same service when I come back again, instead of hacking a loogie in my risotto when I'm not looking. If my service wasn't absolutely spectacular and I know that I'm definitely not coming back to the restaurant...fuck the tip (no pun intended, seriously!).
Good point, the over-working part was probably bullshit.
Whether they are legally bound or not depends on the terms of your employment agreement.
It is discretionary. Maybe, I was just being naive thinking that my firm will be nice enough to honor their words.....
Let me put it this way: I'm an MD. We just had a phenomenal year after I brought in a couple of deals that happened to close. I over-worked my analysts to get these deals done, but I know that I did them a huge favor by giving them this experience and allowing them to work for me. My analysts fucked up a lot and I spent a significant amount of time training them and now they're significantly better at their jobs.
I would hate to go through that process again, so I make sure their bonuses reflect that and for their hard work. Said analyst walks in my door just after hearing bonus numbers and tells me he's lateraling to a bigger, more prestigious bank. He's quitting to do the same thing he's doing right now, clearly he's not appreciative and now I have to do that same shit all over again. Why am I paying you a bonus?
Oh hey, this is actually covered under ArcherVice's playbook to life:
Chapter 3: "Never miss an opportunity... to shut the fuck up"
Hmm based on that... shut the fuck up for two weeks and collect your bonus :)
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