Hi all,
Need your opinion on a specific issue regarding contract signing.
Background - I am currently a Senior Associate on a multi-asset sales desk at a large MM, finishing my 4th year this summer. After a month or so of interviewing I have received a very strong offer for a VP title from a BB, with a considerable salary jump. The BB desk is understaffed and wants me to join asap.
Issue - I am to receive my 2013 bonus in the coming month, and the BB wants me to quit as soon as I can post the bonus hits my bank account. They are going to send me an offer letter in a week or so, and want me to sign and agree on the offer before I quit my current desk.
Can I sign an offer before quitting my current job? Legally speaking.
I have made up my mind to move, even if MM makes me a retention offer.
Essentially I want to take my bonus and quit next day, while making sure the BB offer is still there on the day bonus hits my account.
my 0.02
I would advise against signing the offer letter before you receive your bonus. You would be taking a financial risk that offers no upside. At the mid-senior level there is more at stake than a few chips.
I suspect that you were open regarding your position (regarding timing and compensation) during the recruiting process. Your prospective employer should be mindful of your position; this isn't their first rodeo. Is HR communicating this preference or is the hiring manager pushing you to sign the offer letter? If it's the latter, then he (she) should know better. At the end of the day, signing a piece of paper means nothing. You can back out at any time prior to your start date and there is zero recourse. This request is silly.
Personally, I would push back and tell them that I was uncomfortable signing anything until I had my bonus in hand. There's nothing to gain for either party. However, I would offer to take additional steps (e.g., background investigation / drug screening) to keep the process moving forward. This would help minimize the amount of time between signing the offer and your 1st day of employment.
Perhaps their concern is that you'll shop the offer, but nobody in the right mind is going to ask their current employer to counter an offer away right before bonuses are communicated/paid. Maybe said BB should sit on the formal offer until you're truly available. If this was a deal breaker for them, then the only other option (for me) would be for them to buy me out.
side note: do you have a mandatory garden leave in your current role?
On a strict legal basis, you can request the contract is conditional on receipt of your bonus, so that you can sign today and the offer does not become enforceable/commitment to go to the IBD does not crystallise until you get your bonus.
@devoutCapitalist - You make some good points. However, there may be a risk that @maveryrick's offer from the BB could be withdrawn if he doesn't accept it ie the upside of signing it today is that he locks in the offer.
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