Getting Paid Commissions After Leaving

Currently working at a developer where I've got several leases in the LOI stage.  I'm taking a job at a different developer and I wanted to know what industry standard on earning commissions on those deals is?

I'm not expecting to earn a full commission on them but surely I would get something?  For what its worth I will have 2 of the LOIs signed and executed before I leave.  I'm exiting my current company on friendly terms. 



 

When I was a broker I was paid a commission for a deal I signed up after I left. I don’t think there is an industry standard though. Check your employment contract. It should hopefully have a clause on how this is handled. If you’re not using your brokerage license for your next employer, maybe you can also keep your license held at your current firm, and keep working the deals until they close. Just work that out with the new employer before you go. 

 
Most Helpful

Whatever you agree agree on get it in writing, ideally with a formal contract. To be honest, I am not sure if you have much leverage or power here (depends on if you have an employment agreement that contemplates this stuff). Many developers (and most corporate employment tbh) will clearly state all bonuses/payments (be it for leasing or just promotes/carries/bonuses/etc.) are contingent on current, on-going employment at the time of payment (i.e. why people quit day after bonus payments clear...). 

That said, there are legit deals of fairness, reputation, and just doing the right thing (assuming you have a legit standing). To that end, like everything else, all things are negotiable. 

Sadly, the one case I know of (a friend who worked for a developer and was basically in the same situation you described), involved getting an agreement on ex-post payments. When it was time to pay, the developer basically said, F-off and sue me! I think my friend did sue (it was matters of $100ks), and probably settled for less. This was just the nature of the developer (and the owner/CEO had a reputation for these stunts tbh), others will honor any agreement they make by right of behavior. 

The biggest issue is getting it agreed before you leave, once you go, your leverage falls to zero. 

 
Associate 1 in RE - Comm

Currently working at a developer where I've got several leases in the LOI stage.  I'm taking a job at a different developer and I wanted to know what industry standard on earning commissions on those deals is?

I'm not expecting to earn a full commission on them but surely I would get something?  For what its worth I will have 2 of the LOIs signed and executed before I leave.  I'm exiting my current company on friendly terms. 

Are you a broker or a salaried employee at a developer?  If it's the latter... well, that's the game.  If everyone could quit after closing a huge deal and demand a piece, the industry would function in a fundamentally different manner.

 

Well, I am not a lawyer, nor do I play one on television, but that doesn't sound great for you.  My initial thought is that sourcing new business is part of the job - something you should expect to be compensated for, but at bonus/raise time and not on a deal by deal basis at closing.  From company's point of view, I can see why it would be bad policy/bad for morale to be giving commissions to certain employees and not others.

 

Sounds like I'm not communicating well.  I do get commissions for bringing in leases just like everyone else in the company. I'm also paid a salary+bonus that has nothing to do with the leases I bring in.  I've received commissions for leases I've brought in in the past.  

I know I dont have leverage here but I'm thinking I'll get some kind of cut of what I would have gotten

 

I think you just need to communicate your expectations to your colleagues. 

You probably will have more leverage if you stay involved in the process through closing and see the deals through even if you’ve left. Otherwise it’s kind of like you dumping the remainder of the heavy lifting on your old firm and telling them to send you a check after they’ve done the rest of the work.

Just make sure whatever you guys agree on get it in writing. This is actually pretty common amongst brokers who switch firms.

I had a flair for languages. But I soon discovered that what talks best is dollars, dinars, drachmas, rubles, rupees and pounds fucking sterling.
 

Quo minima porro assumenda exercitationem. Sit et laudantium beatae omnis.

Non est qui sequi. Quo deserunt voluptate excepturi suscipit est. Consectetur autem quia voluptatem corrupti quis libero architecto. Eos amet error laborum. Unde occaecati commodi dolore qui non omnis omnis.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (88) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (67) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”