[Hammer]

I’ll try and make this quick. I work for a small firm in my hometown. About 7 months ago I agreed to take a very large raise instead of pursing another opportunity. Stupidly, I signed an agreement that said I would pay back $7,500 to the firm if I left within the first 12 months of signing the agreement.

Fast forward to today and sure enough I have a mega offer from a fortune 500. I want the job. I live in a pretty small town, and opportunities like this one without having to relocate are almost unheard of. I’ll be able to travel both domestically and internationally, receive a 15% pay bump (already doing well for myself), and huge increase in 401k match, and undoubtedly better insurance premiums. Additionally, I don’t want to work for rinky dink clients anymore and I don’t want to work tax seasons. More importantly I’m going to grow personally and professionally and gain a true understanding of the global business environment. Needless to say, I want the job.

The separation is going to be very, very, very ugly. The partners at my firm think I’m “all in” want me to become partner someday and are not expecting this AT ALL. But, I’m fed up. In my 3 years with the firm I’ve seen 36! people either leave voluntarily or due to termination. That is once a month and I think that is insane. It’s not coincidence, it’s culture. We are so behind on our work, our clients are screaming at us to get there work done. We have a junior staff who, I’m not sure even went to college. Don’t get me wrong I have a lot of respect for the business the partners built, but, they are not fostering growth at all.

I don’t want to pay them $7,500. Within the agreement, there are things they did not hold up to on their end. For example, it reads “Upon passing the CPA exam your title will be senior accountant” I passed the CPA exam and I am not a senior accountant. “We will reimburse you for your cell phone policy” They do not pay for my cell phone. Do I have any recourse here? What would you guys do? Keep in mind the separation is going to be so ugly. We are already sooooooooo understaffed and behind on our work. Take me out of the equation and I don’t know what they are going to do.

Help please! Can’t stand the idea of losing this incredible opportunity or having to pay 5 partners $7,500 just because I don’t want to work here anymore.

FAR - 70, 81
AUD - 83
BEC - 77
REG - 70, 78

Licensed in Ohio.

Now what the hell do I do?

[Hammer]

Don't really consider that advice, mla, or input on what you'd do in my situation. But I appreciate you taking time to research my post history on A71.

FAR - 70, 81
AUD - 83
BEC - 77
REG - 70, 78

Licensed in Ohio.

Now what the hell do I do?

[Missy]

Well I did mention above that I'd get actual legal counsel on what to do, and moreso in your particular situation. Fact is you're looking for reassurance, not advice.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[TaxKeep]

While it sucks, I'd just pay the money and move on with your life. From your description, the sooner you disentangle from this firm, the happier you'll be.

BEC-79 (10/15)
FAR-78 (01/16)
REG-86 (05/16)
AUD-

[Anonymous]

I think mla was just trying to point out – given your history with the company and, obviously you are aware, that you'd be leaving them in a bad spot – they probably aren't going to brush off the $7,500 agreement. As others have pointed out, you might be able to negotiate proration for the 7 months you were there, but they probably won't be like “eh, it's cool, kid. we didn't really mean it. have fun at your new job!” and let you leave without paying something. Either way, if you intend to take the new job then I'd probably also plan on paying the $7,500. Prepare yourself for the worst kind of thing.

I suppose you could not bring it up and see if they say anything.

[Hammer]

I'd like to re-visit this 2 weeks later to give an update and hopefully get some additional advice…

If I leave, they are not going to make me pay the $7,500. Rather, they are trying very very hard to get me to stay. Their argument is that I'm very well liked in the firm, I perform, I'm young, and there is nothing stopping me from making partner. However, they did mention and acknowledge that the path to partner means a TON of hours, sweat, and hard hard work. If I stay, there will definitely be late nights at the office wondering why the hell I stayed. And, there is no guarantee that I'll even make partner. I honestly don't know if I have the passion and drive for what it will take to get there.

Industry argument: I've never worked in industry in an internal audit role, so, I don't have much to go on. It would be a 15% raise and a 7.5% contribution to my 401k as opposed to 3%. It's also a manufacturing fortune 500 Company. I have to assume the opportunities within the organization would be bountiful? Am I wrong to think that? Am I going to get the same learning and growth opportunities working in this role as I would in public? What will my career look like in 5 – 7 years if I go to industry in this role as opposed to staying with my small firm? These are the questions that terrify me.

FAR - 70, 81
AUD - 83
BEC - 77
REG - 70, 78

Licensed in Ohio.

Now what the hell do I do?

[hardin63]

Take the job and pay the money. You have to do what's in your best interest and paying the money will allow you to leave with a clean conscious so you can be entirely focused on your new job. You don't want to be distracted by a lawsuit (if it comes to that) while simultaneously trying to get off to a good start at the new company.

BEC - 90
REG - 88
AUD -
FAR -

[Hammer]

Don't think you read my latest response. Thanks for the feedback though.

FAR - 70, 81
AUD - 83
BEC - 77
REG - 70, 78

Licensed in Ohio.

Now what the hell do I do?

[ruggercpa2b]

When I started out I was in internal audit for a Fortune 500 Manufacturing company. IA was pretty much where a lot of the accounting departments within the company would hire their people. You would spend about a year or two in IA and you would have the chance to explore other things within the company. A lot of people that are head of the accounting departments all started in IA. Some went off did other things and realized they wanted to be in audit and came back. There were so many opportunities within the company.

I personally would go with the IA position just because there seems to be more opportunities for advancement. If you stay at your current firm you dont even know if you will make partner.

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[Ginja_CPA]

Reading your post, it doesn't seem your current company really encourages growth. They can promise you that you'll make partner eventually, they'll do this for you, they'll do that, but many companies seem to just say whatever they can in order to keep you.

If you aren't happy in the environment you have two options. 1) Figure out a way to change it 2) Leave and go somewhere you believe will make you happier.

You aren't guaranteed to enjoy the new job, but you won't know unless you try!

REG: 80 (02/19/16)
AUD: 83 (04/11/16)
BEC: 78 (05/28/16)
FAR: ?

[Missy]

Go to linkedin, change your settings to view anonymously.

Look for other professionals who have worked for that company in that location in that positon (or at least that department). Do they move up to a new title same company or do they burn out after a year and go elsewhere?

Linkedin makes it pretty easy to figure out what's the skinny at the new place. Glassdoor employee reviews but they can be misleading (disgruntled employees are more likely to take the time to do a review than happy employees). If you get the names of some people in that department you can even google their names and see if they're blowing up their social media with stories of how miserable or happy they are at work.

Be your own private detective, its so much better for you than guessing or assuming what this job will bring to your life and career.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[jm962011]

I worked in a Fortune 500 manufacturing company and the IA's traveled, A TON. It was almost like being in public for them. They were young though so it didn't matter (hello, long flights instead of long nights…)

Here is the thing about moving to industry: growth in terms of salaries and titles (IA to Senior IA, to IA Manager) are smaller. The top raise is usually 3% (I’ve heard at my current public accounting firm, 3% is for the “you did ok, you can stay” and can go upwards to 10% for star performers or when you’re moving from associate to senior to manager, etc.). You also won’t get promoted to senior or manager in industry as quickly because someone has to leave or die until a position becomes available (unless the company is growing tremendously, which can be a double-edge sword because a lot of hiring with growth could mean lay-offs at the first sign of financial downturn). Personal learning and growth is dependent upon who you work for and the culture of the new company.

In industry, it can be difficult to move around. Let’s say you’re in IA but want to move over to financial analysis and reporting (ie: preparing financial statements), depending upon the company, moving can be difficult. Is the company open to these types of moves? There are pros to the company for letting you explore (you understand how the company works so there will be less of a learning curve, you may even know the ERP system) but the con to the company is that you might be too valuable in your current position. I also think some employees in industry take the mind-set of government workers.. they’ll never get fired so they kind of do whatever. You don’t track your time in industry, so when Joe Smith comes in at 9am, takes a 2 hour lunch, then leaves at 4, you feel defeated as you just worked 8 to 5pm and through your lunch! This was my biggest pet peeve during year-end. We would sit in a big conference room to work on the tax provision and people would talk all day and then we would have to stay late.

However, in industry, the 401k match is WAY better than public. Health benefits are probably better as well (if you’re at a large organization) because larger organizations in multiple states can get better rates vs. a small or regional CPA firm.

It sounds like this is the 2nd time you’ve tried to leave the firm. First when you signed the $7,500 agreement and now. At this point, if I was your current employer, I would be cautious of you. I think there is some research out there that even if a current employee who puts in their notice but accepts the counter-offer from their current employer, they still end up leaving within a year. They know you are exploring different opportunities, why don’t they just give you crap work and kind of force you out?

[jm962011]

Sorry, I realize you mentioned a lot of what I said about 401k and insurance in the first post

[Anonymous]

im in a similar boat-

except my partners are outstanding guys, not assholes. and im guaranteed partner if i stay. not “maybe
partner.”

you can see how my decision is a lot harder than yours. by comparison, yours is a no-brainer- take the fortune 500 job and never look back! on your way out don't forget to bust out signing “you can't touch this”

[nadroj]

I signed an agreement that said I would pay back $7,500 to the firm if I left within the first 12 months of signing the agreement.
That's the bottom line.

[Anonymous]

[Author]

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