Have to pay back promotion bonus to former bank. They want gross amount but I received net. What should I do?

Got promo bonus last year in August but left for PE this year. Got 12k net on a 20k promo bonus at the time. PE company will pay clawback but I dont want to pay 20k back, I believe I should pay the 12k back. Language in promotion sign-on letter seems to suggest it's the amount received. Here's the clause:

c. In the event of your voluntary departure, notice of resignation or termination for Cause prior to 365 calendar days from the date of either installment of the Promotion Bonus payment, you agree to repay to Company within thirty (30) days the applicable Promotion Bonus received.

what did you guys do? it must cost more than 8k for them to pursue action against me?

Comments (7)

  • Analyst 1 in IB - Gen
8d 

Where are you based? In the Uk, and I guess in most countries, you can claim the tax back at the end of the fiscal year. It's still very annoying as you have to give back the gross amount first, and need some extra cash

  • Associate 1 in PE - Growth
8d 

It's pretty much always the gross amount, not the net amount. You will be trued up when you file your tax return.

  • 1
  • Associate 3 in IB-M&A
7d 

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