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New Job: Question on Bonus

Discussion in 'Business, Careers & Education' started by fairholme_wannabe, Jul 8, 2010.

  1. fairholme_wannabe

    fairholme_wannabe Well-Known Member

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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?
     
  2. Don Carlos

    Don Carlos Well-Known Member

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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.
     
  3. Texasmade

    Texasmade Well-Known Member

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

    Peak and Pine Well-Known Member

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    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).
     
  5. fairholme_wannabe

    fairholme_wannabe Well-Known Member

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

    Thanks all.
     
  6. fairholme_wannabe

    fairholme_wannabe Well-Known Member

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    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.
     
  7. Runningman411

    Runningman411 Well-Known Member

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    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.
     
  8. sho'nuff

    sho'nuff Well-Known Member

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    you dont get signing bonuses for working at mcdonalds.
     
  9. Milpool

    Milpool Well-Known Member

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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.
     
  10. fairholme_wannabe

    fairholme_wannabe Well-Known Member

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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

    ??
     
  11. Douglas

    Douglas Well-Known Member

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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.
     
  12. SpooPoker

    SpooPoker Well-Known Member

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

    fredfred Well-Known Member

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    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.
     
  14. cchen

    cchen Well-Known Member

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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
     
  15. Texasmade

    Texasmade Well-Known Member

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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.
     
  16. HRoi

    HRoi Well-Known Member

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    short answer: don't burn your bridges

    longer answer: it would be smart to tell your boss to his face, do not give a reason that is a negative reflection on him or the company, and ask him how you can work out a notice period that will be the least inconvenient for him as possible. then work conscientiously during that notice period and try your best to train your replacement as well as possible.

    it may surprise you how much it will do for your career to be on great terms with former employers. or the other way around.
     
  17. Milpool

    Milpool Well-Known Member

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    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.

    Basically, you want the letter (something permanent and in writing) to be brief and professional. You shouldn't burn bridges with it, nor should you offer advice or give any reasons or anything else like that. Polite, professional, to the point and nothing more. If you want to say thanks, that is fine. Beyond three sentences and you are probably rambling.

    Speaking with your boss is different entirely, and depends on your relationship there. As I actively try to maintain solid relationships with my direct supervisors, I always give them a heads up so they can prepare. It sucks to get left high and dry suddenly. I also make sure to offer to train a replacement if they can find one in time. Smooth transitions help everyone and are always remembered.

    But. . . be prepared to get walked right to your car by security the moment HR gets that letter, no matter when it says you are resigning.
     
  18. globetrotter

    globetrotter Well-Known Member

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    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.

    I haven't had a dispute about this issue, but when I spoke to a labor lawyer in new york about a different but similar matter, she said that that was illigal. that they needed to pay you and then have you pay them back



    I would offer to stay on as long as it takes for a peaceful transition. they won't want you to stay, but it makes you seem the really good guy. they will probrably throw you out right then and there. when you talk to your boss, be ready to walk.
     
  19. fairholme_wannabe

    fairholme_wannabe Well-Known Member

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    I haven't had a dispute about this issue, but when I spoke to a labor lawyer in new york about a different but similar matter, she said that that was illigal. that they needed to pay you and then have you pay them back



    I would offer to stay on as long as it takes for a peaceful transition. they won't want you to stay, but it makes you seem the really good guy. they will probrably throw you out right then and there. when you talk to your boss, be ready to walk.


    Interesting. Thanks for the advice. This raises an interesting caveat--if my letter of resignation states that my last day of employment will be 'x'--then will they continue to pay me through 'x', even if they escort me to the door after conversation?

    I ask, because if they escort me to the door and do not pay, then would employer technically terminate my employment before my resignation takes effect? If so, what implications would that have on signing bonus repay? Just curious.

    Thanks again.
     

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