Changing jobs - deferred stock component of bonus

To be hedged's picture
Rank: Chimp | 6

Fellow monkeys, I am leaving banking after bonus payout. Part of the bonus is in deferred stock that doesn't vest immediately. So once I resign, I will lose that amount. Is it reasonable to ask my new employer to compensate me for that? The amount is not insignificant. I am leaving the U.S. and the offer letter did mention that they will pay me for "relocation expenses". We did not specifically discuss the deferred stock issue when I signed the contract.

Any thoughts?

Comments (12)

Jan 29, 2010

Yes it is reasonable to ask for it, but if you already signed a contract then don't be surprised if they don't go along with your proposal.

Jan 29, 2010

Anyone with similar experience of changing firms and moving out of the USA? please advise.

It's just not the deferred stock component of my bonus - if I withdraw from my 401K because I am leaving the USA permanently, there's something like a 20% penalty as well. Crap.

Jan 29, 2010

It is reasonable, however, most likely your new employee won't give you a shit since you are just an analyst or maybe an associate. Especially when the amount of money is small, bargaining with them does not display a good character of you. In this market, they can easily find some replacement if you bargain too much with them. Let's put in this way, if your new employer tells you they will not pay for that portion, will you turn them down? If the answer is no and since the amount is small, I'd just skip it.

Jan 29, 2010

Reading comprehension -- "the amount is NOT insignificant." While I agree that he should not turn down the offer if the new company refuses to compensate him, I definitely think he should ask that some or a portion get reimbursed -- as a signing or relocation bonus, whatever they want to call it.

Wouldn't bother with the 401k, those are just the rules for leaving the U.S. Sucks, but such is life.

Jan 29, 2010

I have asked in the past to be comped on stock option, and was declined. Sample size of one so take it with a grain of salt. I want to know what others have to say about this topic too.

Jan 29, 2010

any other thoughts?

Jan 29, 2010

no one knoews?

Jan 29, 2010

Seems like this would vary widely by situation. Are they actively recruiting you or did you reach out to them? At least in banking i've seen firms offer to buy out analysts bonuses at top bucket rate to entice them to switch.

Jan 29, 2010

bumping this up to see if i can get more comments. help a brother out please.

Jan 29, 2010

If you dont ask, you will never receive.

All depends on how much they like you and how much money they have to throw at you. Never hurts to negotiate.

Jan 29, 2010
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