sign on bonus
So I was at a bar and some prick tried to tell me he accepted an offer w. Deloitte consulting, and took the 10k signon but decided to work for some shitty tech M&A boutique .
I ws under the impression that A. you get the sign on in your first few paychecks B. if you leave before the first year, you have to give it back.
thoughts?
If he received the signing bonus before walking away, he would legally have to pay the 10k back to Deloitte.
Terrence,
The fact that he said he took the 10k sign on and walked away is an outright lie. One is legally bound to return the bonus if they do not accept the offer, or even if they renege on the time frame requirement in the contract. Sometimes if a person leaves the company after six months they have to return the bonus with interest.
In regards to when and how sign on bonuses are received depends on the employer. Some deliver the bonus in separate parts before and during the beginning of employment. Some banks even give the signing bonus many months before one starts working.
Hope this helped...you should laugh at this douche for even considering consulting.
When I signed up it said you had to work through January or you had to pay half back (July start). I'm sure it is different from firm to firm. It would suck to have to pay the 10k back considering it is about 6k after tax.
Wouldn't you just get a tax refund/pay back only the after-tax portion since it's no longer income?
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It depends on the company, but he would probably need to return the money if he walked away before joining. I got my sign on bonus with the first paycheck, and the clause in the contract said that I would have to pay it back pro rata if I left the bank within a year. They ended up laying me off after 9 months (post Lehman, Dec of 2008) but they did not ask me to return the money. small mercies in life :D
Friend of mine did something similar. Assuming Deloitte pays the sign-on immediately, and firm 2 pays it in your first pay cheque, he doesn't have to pay it back till Deloitte know he's left. He may have signed with firm #2 without reneging on Deloitte, so the sign-on is like an interest rate free loan till he calls them up in the summer and tells them he's not joining their program. Then he can use the sign on he receives from firm #2 to pay back Deloitte.
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Sounds like you were getting hit on. Go for it!
Same situation happened to me, except he tried to tell me he got a 15k sign on bonus. It seemed every number I told him when he asked me how much I made he added 5k or 10k more. I guess if you work in BB Risk management you earn 80k plus 15k sign on. Who knew? Shouldn't have dont IB.
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