Question about new job / bonus structure
Hi.
I am switching jobs. Start date will be mid October. In the contract I signed, it stated that I should receive a pro-rated bonus for the fiscal year, to be paid out in April 2014.
I just received a call from a partner, stating that I will not be able to receive a bonus in April 2014, because I will not have enough time to be reviewed properly. I was told that I will receive a bonus in April 2015, that will take into account the time in 2013 and 2014 I am an employee of the firm.
What is the appropriate response? I obviously would rather get the prorated bonus for 2013 in April 2014. Basic TVM - the money is more valuable to me sooner, rather than later.
Please advise
Thanks!
I take it the fiscal year end is Dec 31? April seems like a ridiculously long time to wait for the check to come through. If that's the case though, seems somewhat reasonable for you not to get a bonus based on 2.5 months of work.
I joined my current firm (boutique IB) at the end of Nov. and received a small bonus for year end (which I did not expect) as a show of good faith. Not sure if my experience was typical.
It makes sense that I cannot be reviewed for 2013 (YE 12/31) because I will only be with the firm for such a short period of time.
But - When I was given offer, I was told that I would receive a bonus in April. It seems unfair that I will not get any bonus until April 2015, and that they waited until after I quit my previous job. Seems unfair that they waited until now to tell me.
They want me to sign an amended contract that states that the 2.5 months will be added to the fiscal year 2014 bonus to be paid in April 2015.
Sounds like they put you in a pretty shitty position. My biggest concern would be them completely stiffing you come April '15 - I know they aren't accruing any bonus payments for you across 2 fiscal years. I imagine it will be difficult for them to give you a substantially higher bonus than your peers, if they even remember that they are paying based on 14.5 months of work.
Wish I had some sage advice, but don't really know what to tell you.
I was in a similar situation - worked for about 15 months before I got my first bonus. Not sure of the industry you are in (presumably IBD?), but for me all they could do was promise me top bucket. Most banks are very limited in their flexibility with junior comp as it is set by committee - the only thing your partner/MD can do is try and get you in the top bucket - and even then there is no guarantee (comes down to his word and the number of other MDs trying to do the same thing).
Tell them the April bonus was a part of you contract. Ask them why they didn't include that in the contract when they made an offer and why they're trying to change the terms now.
Honestly, I don't know if this is standard practice or not. What I do know is reneging on a contract isn't standard practice. It's really up to you as to what you do. All I know is I'd be pissed if they lied to me like that.
If the new job is a move up, don't complain, unless you see yourself as a big asset to the firm.
That's not complaining. That's negotiating. The difference is he's negotiating from a position of good faith while the company is doing so from a position of bad faith.
I'm not saying fighting for the bonus is the right move (or the wrong move) because I don't know. Hopefully someone else can offer advice... @monty09 @Edmundo Braverman maybe
Note: @wallstreetoasis.com Eddie's @ thing doesn't work.
users with a space in their username need to have " " put around them for @mention to work. we are looking into trying to find a way to make it autocomplete...but for now, will have to go with this...
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