Quick Renege Fallout

Got an offer from a regional bank on the west coast I like a lot. Deadline is coming up and keep thinking about what if one of the places I didn't hear back from after my Superday ends up extending an offer. I've heard of cases where people receive an offer even a week or more after the Superday because someone didn't accept.

Is it the end of the world if I go back after signing if it is like in the few days after doing so? My thinking was that the impact would be similar to just not signing in the first place but I don't know. Also since in this scenario I would be staying on the east coast and the bank that offered me is on the west coast I was thinking there might be less potential fallout.

For context there were a few like lower BB type places on the east coast I interviewed at but haven't heard from.

I know the odds of one of those places giving me an offer this far after the Superday is very unlikely, but just want to be prepared if I actually do get into a situation like this.

8 Comments
 

Reneging on an offer, even shortly after signing, can have significant consequences, and it's not as simple as just not signing in the first place. Based on the most helpful WSO content, here are the key points to consider:

  1. Reputation Risks:

    • Reneging can lead to being blackballed by the firm you initially accepted. This could have long-term implications, especially if people from that firm move to other companies in the future. The finance world, particularly in areas like real estate or investment banking, is small, and word travels fast.
    • Even if the bank is on the west coast and you're staying on the east coast, the industry is interconnected. People talk, and your reputation could take a hit.
  2. Professional Courtesy:

    • If you renege, it's crucial to handle it professionally. Provide a clear and respectful explanation, even if it’s brief. Avoid burning bridges unnecessarily.
  3. Potential Fallout:

    • Some firms may report your reneging to HR networks or other firms, which could impact your standing with other employers. There are cases where candidates who reneged ended up with no offers at all because word spread.
  4. Timing Considerations:

    • While reneging a few days after signing might seem less severe, it still reflects poorly on your decision-making and commitment. The impact is not necessarily reduced just because the time frame is short.
  5. Alternatives:

    • If you're genuinely concerned about other offers coming in, you could try to negotiate an extension on the deadline with the west coast bank. This would give you more time to hear back from other firms without committing prematurely.
  6. Risk Assessment:

    • Given that the odds of receiving an offer this far after a Superday are low, you need to weigh the potential fallout of reneging against the slim chance of another offer materializing. If you’re happy with the west coast offer, it might be better to commit fully and move forward.

Ultimately, reneging should be a last resort, as it can have lasting consequences on your career. If you do find yourself in this situation, handle it with as much professionalism and transparency as possible to minimize the damage.

Sources: Bank withdrawing signed/accepted offer?, 7 Tips on Reneging, Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?, Backing out after accepting an offer

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Did reach out but deadline was pretty much right after I found out I got it. Basically got details Thursday night reached out Friday and deadline is on Monday fairly early

None were through my school. I actually like this bank more but I want to stay on the east coast so it’s purely geographic

 
Most Helpful

Do what’s best for you and makes you happy. Nobody will care or hold it against you, there’s even a chance your firm is subtly happy for you that you got something you’re excited about. You’re just a kid, man. It ain’t that deep or that serious. I’ve had it happen a couple times over the years where a candidate that I interviewed or networked with ends up telling me they accepted an offer at another firm, and all I feel is joy for their success. Our HR department always has tons and tons of backups that are equally excellent. 

Would you tell someone to forego what he wants, what makes him happy, to adhere to some bullshit made up wage labor politeness rule that hasn’t been relevant in 40 years? News flash: your company will gladly send you and your whole family to the streets to starve if it generates $1 more or hell even $0.25 more in profit for them.

To be clear whether the initial firm is a regional boutique or the best global EB doesn’t matter… all people and all firms are deserving of your respect. So make sure you send a nice note as soon as possible letting them know circumstances have changed and you can no longer accept the offer.

But the reality is you’re completely fungible. They’ll forget about you immediately and extend your offer to one of the 30 or 300 or 3,000 other candidates that are pretty much the same as you and will jump with joy at the opportunity and give the firm their best.

You ultimately end up at a firm you’re happy with. The “runner up” guy that that replaces you ends up breaking into the field at a firm he’s happy with and potentially changing his whole career trajectory. Your original firm ends up with a candidate that’s actually excited about the opportunity and ready to give them his best attitude and performance.

Every other person and every company in the world is doing what’s best for them. So you do what’s best for YOU. You look out for YOUR best interests. Lord knows nobody else will. Good luck out there. 

 

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