[nobodyukno4]

Hi all,

I’m going to be a senior at the end of September and we get a 5k bonus upon promotion. I have an offer for another job with a start date of early October. I was wondering if there are any rules around the 5k bonus? Does anyone know if it gets paid out at the end of September or mid-October? Also, if its mid-October would you still get it if you had put in your two weeks at the beginning of October?

Thanks.

[MoreCoffeePlease]

Each company is different, but from my experience, bonuses tied to future performance/promotions don't get paid out if you give notice or leave. Further, I have worked with companies that stipulated certain bonuses be repaid if you left the position voluntarily within a certain time frame. For example, my signing bonus has to be repaid if I leave the company within a certain number of months.
No judgement here whatsoever, but think about it – you essentially want to collect a $5k paycheck for a position you intend to leave within a few weeks. If you were the Big 4 firm offering the promotion, would you want to pay that bonus out?

FAR - 87; May 2016
AUD - Anxiously waiting, July 2016
BEC - ?, August 2016
REG - TBD

[nobodyukno4]

I definitely here you and understand where you're coming from. I view the signing bonus as a prospective bonus whereas this bonus is more of a retrospective bonus since you're being paid a bonus for reaching a certain level. I've put in all the required time necessary to earn the bonus so I don't want to come up a few days short when I've already put in 2+ years to earn it.

[MoreCoffeePlease]

I totally see where you're coming from in regards to the bonus being a reward for your hard work thus far. I would recommend poking around your company's policies/procedures or even see if there are some HR policies floating around in a handbook or intranet. It may highlight the bonus payment guidelines or any other little quirks they have (ex. one company I worked for would only pay out vacation/sick time accruals with a 3 week notice)

FAR - 87; May 2016
AUD - Anxiously waiting, July 2016
BEC - ?, August 2016
REG - TBD

[Anonymous]

In your eyes, you earned the promotion from 2 years of hard work; in the employer's eyes, they're paying you the bonus because they're gaining a senior. I would guess that in the employer's eyes, the bonus is like a signing bonus for a senior, like they're signing their staff as a senior and giving him/her a signing bonus for their new position.

So, it's all a perspective difference.

The question comes down to whose perspective is in the employer's policies. Hopefully it's in the employee handbook or somewhere else that you can find it.

The employers I've had (none Big 4), you would have forfeited any pending bonuses once you resigned. I've worked at some that paid out vacation time and some that didn't, but none that paid out bonuses, incentives, etc. after you'd resigned. (I had one job that we earned additional for referrals and customer service levels, etc., and it was paid out quarterly about 6 weeks after the quarter ended; I left about 4 weeks after the quarter ended, so wasn't eligible for the payout for the last full quarter that I worked, or of course for the partial quarter.) So, based on my employment history, you'd be forfeiting $5k to leave before you receive it. However, you may be required to return it if you leave within so long after receiving it, so it might not make that big of a difference.

[Accountant183748]

I agree with others that you would probably be forfeiting the bonus. I'm not sure how negotiations are going with your future employer, but it might be worth bringing this up and seeing if you can negotiate a higher salary or a signing bonus.

[Son]

Bonuses at my Big4 are rewards for past (last year's) performance. You will not forfeit the bonus if you switch employers since it's compensation for services already provided. People on this thread are clearly guessing or speak from their past non-Big4 experiences – none of that is relevant to you, you need to check your firm's compensation policy as that is the only source that will give you the correct information. Lastly, bonuses are typically paid out with your first paycheck after the promotion becomes effective.

AUD - passed
REG - passed
BEC - passed
FAR - passed

[MBA.CPA.CISA]

I may be too late, but I found myself in this situation a couple years ago when I left a Big 4 firm. At my firm, you were eligible for a year-end bonus that was directly tied to your performance evaluation after years 1, 3, and 4. This bonus was not provided after the second year or fifth year because there was a promotion bonus in those years if you made the promotion. So, to Lilla's point, it is all about perspective. My employer may have tried to spin it like a promotional bonus but in my opinion it was more of a bonus relating to the previous year. I did not leave until 2 weeks after the bonus was paid out, and there was never any stipulation that I had to pay it back after leaving. Whenever I got flack from coworkers at that firm, I would bring up the point about no other bonuses being paid out during that year due to the promotional bonus and that quickly silenced them. Hope this helps!

[Author]

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