Reneging on offer
Was a S&T intern this summer. Now I have a standard FT Analyst offer on the trading side (and will probably start being allowed to trade 6mo-1yr after starting). Yet I really want to be (a) working with a different product that requires a more quantitative skillset and (b) on the buyside.
I am recruiting for quant firms and macro HFs now ... know this has been posted before, but any input on the ethics and practicalities of signing and offer and then reneging? If I get a better offer, could that employer find out and will they pull my offer if they know?
Just looking for advice in this situation because I have to make a decision fairly soon. Thank you all!!!
Definitely a case by case basis on what could happen. Overall, you're more than likely going to be fine if you renege, especially if you're going to the buyside. Would be more problematic if you're simply trying to go to another bank across the street.
I imagine you should be prepared for questions surrounding it, because in interviews they're going to ask about a return offer. It would be ideal if you simply say yes you have one and the questions stop there, but there's a chance they look further into it, or try verifying it via a contact they have at where you interned. From a pragmatic viewpoint, even if the interviewer finds out you signed elsewhere and will renege, if they think you will be a valuable addition to the team, they probably won't give a shit. Everyone knows it's a cut throat industry.
To come all the way back and answer your question of the offer getting pulled... if you lied in the process to your interviewer or bank you're reneging and that pisses someone off - maybe something bad happens, but if you were truthful and they extended an offer, I'd be shocked if they pulled. No one is going to have a 100% guaranteed answer for your question because no one knows who your interviewers are. Hopefully this helps.
I reneged on an accepted offer right out of college. The short answer is nobody will care. You're an entry level employee there's more than enough of you to go around and the firm that extended you an offer didn't lose any sleep denying the hundreds of other applicants trust me. You'll most likely be wished well and that's that. Just be sure to call your hiring manger/HR/etc. as soon as you have your other offer in the role you really want accepted/signed. Do not ghost them and just not show up because then they will care. You're an at will employee and can leave whenever you wish not an indentured servant. Just be professional and respectful and there'll be nothing to worry about trust me. This is coming from someone who spent WAY too much time worrying over this exact thing many many years ago.
This is very true. This early on in your career it is better to find something you enjoy or think can set you up better than worrying about being loyal to a job that will cut you the second they need to.
No one will remember you reneged in 1-2 years at such a junior level.
I'll play the role as the tough love commenter:
You have no idea what you really like, you have a job lined up that most others dream of and are finding it impossible to find in a choppy market, and you're going into a new role with a foot already out the door in a lucrative volatile market which is a gigantic mistake. Grab the bull by the horns, use the opportunity to learn and connect, see what you like and don't like, and go from there. Wanting to leave for greener pastures isnt relevant because you havent been on one to jump from, and it comes off as humble bragging a bit. Career is not a linear line upwards, it's like riding Kingda-Ka.
Going to the buyside (if you get a job, recruiting means nada) you're expected to perform with little to no training. Out of school, I can promise you outside fundamentals you need way more knowledge to pitch a strong conviction trade with understanding the minutae of port mgmt. I can also say that buyside training programs at the top shops if they have it where you're looking certainly won't be what you think - I've been to these places - my first true finance job was at a HF as an analyst less than a year out of school and I didn't know SHIT and ya realize it real fast. Let alone macro - the amount of people I've seen turn over in those teams is astonishing, and the amount of financial instrument/derivative mastering, global knowledge and necessary expertise of politics, trade, war games, climate, FX, fiscal and monetary policy, etc to truly be good is quite demanding.
Quants... don't even get me started, first the resumes I read there for interns or new grads were just quite unbelievable. Culturally, yeah hard pass. You either stay a year or 20 yrs
You have a whole career ahead of you, and you can move around a lot. IMO use the end goal as motivation while you learn and see if it's what you want. See if you can lateral to other trading groups at your current spot. Some of these connections will be more important when you move over than not having them at all
Very surprised to see that the current leader for 'most helpful' comment is a comment that rejects OP's stated career preferences and basically says OP is too young to know what he wants.
It also casts aside OP's actual question which is about the consequences of reneging.
While reneging is acceptable, you don't want to be telling your new firm that you haven't accepted an offer when you actually have. There is a possibility, low but plausible, that someone gets pissed and rats you out, and that your new firm then holds it against you that you lied.
I'd recommend telling the new firm(s) that you've accepted an offer, but that for XYZ reasons you've learned that your old firm will be OK with you reneging to go to the buyside. For example, you could say that a trusted senior person at the old firm has been a career mentor to you and has let you know that they're tolerant of people doing this . . they understand that interns may not be fully aware of their buyside prospects until after they accept an offer, and they appreciate that someone in that position will cut bait before joining instead of working there with an eye on the door. Maybe they even see such people as future clients. Different things you can say. Point is, don't tell big lies like claiming you haven't accepted an offer. Tell the truth about the offer (only if asked, which doesn't always happen) and a smaller lie about why you're OK reneging.
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