New Job: Question on Bonus

Greetings--

I have been offered a new position with a new firm. In my old position, I was given a signing bonus, with the caveat that if I didn't maintain employment with them, I would have to repay the bonus back at certain intervals (leaving before 1 year meant x% repay, leaving before 2 meant y%, etc.)

My new firm, as a matter of corporate practice, is unwilling to buyout my bonus, leaving me on the hook to repay it, should I accept the offer. When it comes time to write the check, will I repay the gross amount of the signing bonus, or the net?

Originally Posted by fairholme_wannabe

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Greetings--

I have been offered a new position with a new firm. In my old position, I was given a signing bonus, with the caveat that if I didn't maintain employment with them, I would have to repay the bonus back at certain intervals (leaving before 1 year meant x% repay, leaving before 2 meant y%, etc.)

My new firm, as a matter of corporate practice, is unwilling to buyout my bonus, leaving me on the hook to repay it, should I accept the offer. When it comes time to write the check, will I repay the gross amount of the signing bonus, or the net?

By net, I assume you mean after-income-tax net? Or do you mean whatever portion wasn't vested by the time you jumped ship? Or both?

Either way, it depends on whether or not your employer had an amortization clause worked into the vesting plan on the sign-on bonus. I highly doubt it did, which probably means that you're on the hook for the full amount. Sorry.

You'll pay the gross-pretax unvested amount. If you have PTO, that will cover part of the bonus.

Prorated for length of time served, you will pay your present employer the entire amount they paid out, even tho you did not receive that amount. Come income tax time, you will file your give-back as a loss and the IRS will refund you the difference between what the company actually gave you (less) and what you gave them (more).

Appreciate the insight--that's exactly what I needed to know.

Thanks all.

Bumping an older post.

I've decided to take the offer. I would like to offer my resignation, effective in two weeks, on Monday. What is the best way to do this? I obviously need to have a discussion with my direct superior--do I need to construct a resignation letter that I bring to my discussion with him? I don't exactly know the proper protocol or etiquette, as I'm somewhat new to the game. Any suggestions on additional steps that need to be taken besides resignation letter and discussion with direct superior?

Thanks for the input.

Would help if we knew your job or at least what field you're in. If you're moving from Burger King to McDonald's, I'm sure a verbal notice would be acceptable.

you dont get signing bonuses for working at mcdonalds.

Your resignation letter should basically only say the date your resignation is effective, and nothing more.

You may get an exit interview by HR.

Originally Posted by Milpool

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Your resignation letter should basically only say the date your resignation is effective, and nothing more.

You may get an exit interview by HR.

Thanks for resignation letter advice.

So there's only two steps here:
1) Discuss with boss
2) Give him resignation letter

??

Originally Posted by Milpool

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Your resignation letter should basically only say the date your resignation is effective, and nothing more.

You may get an exit interview by HR.

Not that I have a lot of experience with this, but why so curt? I would at least have words of thanks or something noncommittal but classy. Can't hurt to maintain the bridge just in case.

3. copy files to flash drive
4. FedEx flash drive to secret location
5. max out company credit cards
6. photocopy ass

A "thank you for employment" is fine. Keep the thing brief though.

"This is to give notice that 07/29/10 will be my last day of employment at ABC company".

Thank you for the employment. (if you wish).

Knock on door of boss, say "I have some important news... Thursday will be my last day here. This is my 'official' resignation letter" and hand him letter. THEN give a copy to HR in case your boss is an idiot and doesn't tell them. They are the ones that cut the checks... so you want them informed asap.

You do not have to give them any other info about new job if you don't want to. "I'm going to pursue other things". The deal is, if your new employer can be hit with charges of "poaching" then there could be a problem. Not saying that is the case.. you should know already if it is or isn't a possibility.


It's not a big deal.. it's a normal part of business. You also do NOT owe them 2 weeks notice... but if you are on good terms it's helpful to them to do so.

You may not actually have to repay whatever % of your signing bonus. They say that in most offer letters, but at my company, legal says that it cannot be enforced and that the company legal department will not help you get it back, meaning, your boss would have to take the effort to sue you to get it back. For most companies, it's not worth it

Originally Posted by cchen

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You may not actually have to repay whatever % of your signing bonus. They say that in most offer letters, but at my company, legal says that it cannot be enforced and that the company legal department will not help you get it back, meaning, your boss would have to take the effort to sue you to get it back. For most companies, it's not worth it

At my job, if you have to repay the signing bonus, it gets taken out of your last paycheck or gets paid out from any accrued PTO/unused vacation time.