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June 30, 2026
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Based on the most helpful WSO content, when a firm guarantees a total compensation amount, they typically calculate the bonus as the difference between the guaranteed total comp and your base salary. Whether they use your current base or next year’s base depends on the specific terms of the guarantee.
If the guarantee is tied to "total comp," it’s crucial to clarify with your firm whether they are basing it on your current base salary or the adjusted base for the next year. Firms often use the base salary at the time the guarantee is made unless explicitly stated otherwise. To avoid any confusion, it’s best to get this detail in writing from your employer.
Sources: 2015-2016 salary & bonus discussion, 2015-2016 salary & bonus discussion, Is this associate compensation competitive?, https://www.wallstreetoasis.com/forum/job-search/negotiating-offer-before-during-and-after-interview-follow-up?customgpt=1, Associate Bonus Clawback
I would just ask them...and get it in writing
Bump!
Couple of thoughts
As far as I know, none of this is in writing but instead just a promise from the firm. No multi year contract or anything
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