Signing-on bonus / FT contract clauses

I know that the Citi IBD analyst contract [for HK at least] states something along the lines of "you must pay back all of the sign-on bonus if you leave within the first year, and pay back half if you leave within two years"

Is this a common clause in analyst contracts???

12 Comments
 

Generally, the way a bank does this is that they structure your sign-on bonus as a loan that is forgiven at the end of twelve months. So, if you do leave you have to pay it back plus interest (prime plus 1% is a popular rate).

I have not heard of paying back half if you stay for less then two years however.

--There are stupid questions, so think first.
 

I get to keep mine as long as I stay for the duration of BB summer training program. If I leave during the summer then I have to pay back the bonus proportional to the amount of training I didn't complete.

 

Different banks have different structures.

As far as I am aware, most used the pay back 100% if you leave (or let go for cause) within the first 12 months and its all yours after that.

A small handful I've seen used a 25% step every 6 months (so after 1 year, you owe 50%, after 18 months it falls to 25%).

 

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