Severance bonus 1

[nate2003]

OK,
So I accepted an offer with another company to start probably in next 4-8 weeks (still haven't decided). Today my current company announced that fiscal year is ending in 2-1/2 weeks and we are doing very well and that there will likely be a large bonus payout. (maybe 6-7% of salary) Only thing is that the payout comes the second month after the end of fiscal year, and I might not be here then. I don't know if they could write me a check after I am no longer an employee and I haven't given my notice that I am leaving. My thought was to ask for a severance bonus equal to the bonus payout when I leave. Has anyone ever asked for and gotten a severance bonus? I have been here nearly 6 years and have always been a good employee.

The other option I have is to stick it out here and try to coordinate my leaving with the payout, but that might be longer than either I or the other company want to wait.

"I have had my results for a long time, but I do not yet know how I am to arrive at them." Karl Friedrich Gauss

 

[wes616]

You know, there is one possibility that we may be missing here... Maybe what the OP is really asking for is some "hush money" to keep him quiet for something "illegal" that the company is doing (maybe that's why 1. he is leaving, and 2. the company is profitable).

This, to me, seems just as likely as the company giving the OP is "bonus" as "severance."

Wes C.
------------------------------
Light travels faster than sound. That's why some people appear bright until you hear them speak.

 

[waskillywabbit]

I agree with SomptingGuy. I can't believe folks are even entertaining your question...you want a severance bonus? Go ahead and go ask them and then come back and tell us how far they throw you out in the street.

Most folks who want to have their cake and eat it too end up a lard arse, choke on it, or both.

Brian

 

[ChrisConley]

I ran into a similar situation with my very first job. I was 'owed' a bonus, it was due in August and was past-year performance based, and had still not received it in October.

I found a new job and then hounded my boss for my bonus before I gave notice I was leaving.

To my bosses credit, he didn't bat an eye when I announced I was leaving two days after finally getting my bonus check.

 

[Heckler]

I see it as earned money for the past years performance. But companies put condition on the money that will most likely prevent you from getting the bonus. Now if this was a hiring bonus and you left the company after a short time for whatever reason you better believe they would come after that money. For some reason it's always in the best interest of the company.

Do you think Carly Fiorina deserved her 43 million severance package? Part of her severance package was from past years performance.

But then again, like Chris said, you can give notice after collecting your earned bonus. Or you could ask your new company to match your earned bonus as a signing bonus.

 

[EddyC]

nate,

I think you should ignore any potential bonus/severance and move on soon, if that's what you really want to do. If you end up leaving shortly after they give you a bonus, they will probably be angry. Word of your behavior may circulate, possibly giving you a poor industry-wide reputation.

 

[Pulpboy]

I say keep your mouth shut - wait for the bonus, then leave quietly. I certainly wouldn't try and ask for it if I left before it was handed out and EddyC is right - you are risking a bad reputation but that depends on how much they liked you, how much you did for them to get the bonus and how quickly they can replace you. They'll probably be a little choked at first and forget shortly afterwards.

We have lots of guys who go get new boots and coveralls and then quit. We laugh at it but really there's nothing the company can do and why not if they've done well for the company. Depends on the employer... big company / lots of money probably couldn't care.... small company tight on cash will be fuming.

Personally I'd probably ignore the bonus altogether and leave since I had already decided to, plus I have a terribly guilty conscience.

 

[Heckler]

Pulpboy - why would you feel guilty taking something that you have rightfully earned? Companies do stupid things often times at the employees expense but do you think they feel guilty?, that would be a big NO!

Do you think Carly felt any guilt for what she did to "The HP Way"......in the six years she was at the helm she demoralized the employees by her bullheaded decisions.

 

[Ussuri]

Most folks who want to have their cake and eat it too end up a lard arse, choke on it, or both.

As Billy Connelly once said "Oh you just want to have your cake and eat it too". F**king right! What good is a cake if you can't eat it?"

 

[ajack1]

Wow, this one really splits people into two camps, the you have earned it and it is yours take it by whatever means and the why would anyone pay a bonus to someone who has just left?

It is funny how both camps can categorically state they are correct on a legal ground without knowing anything about your terms and conditions. My guess is if it is stated in there you will be entitled but if not you won’t.

As for asking a future employer to match this amount or start at a later date than agreed, I would view that in a very bad light if I was in their shoes, how would you feel if they started you on less money? Personally I would never ask for that as it seems morally wrong to me, but then again if I do not ask I will not get.

So legally I would guess it is down to your contract, morally only you can decide.

 

[MedicineEng]

Tipically bonus is not stated in the contract since it is variable and at the discreption of the company. I can see both sides since as I stated before I was involved in a similar situation, and both sides are right.
This looks like one of the threads that we split into two groups, repeat arguments and in the end nobody will be convinced to change side.
As such, and if the bonus is not in your contract as a mandatory payment, do what you feel it is right.
If you feel that it's yours, stay, receive it and leave.
If you feel that is wrong to receive it since you are leaving then act accordingly.
This all goes how do you want to leave the company.
I prefered to leave it without the bonus and with strong friends (even my bosses) that I know I can count on in the future.
Would it be the same if I just grabbed the bonus and kiss them goodbye? I don't know.
Do whatever suits your conscience knowing that any of the decisions have advantages/disadvantages as everything in life.
Good luck and let us know how it went.
Regarding the severance bonus, I think that your boss had to be smoking a lot of strange stuff to agree on paying you anything when the decision of leaving is yours.

 

[SomptingGuy]

I recall my original contract stated something like: "The company may decide to pay you a bonus." Non-commital, although the bonus calculation formula was explained at great length during my interview, including a history of recent payouts. Oddly enough, it's gone now. Apparently our low bonuses eroded moral, so the bonus scheme was canned.

 

[winpop123]

Two words are being used here that are not interchangeable:
Severance does not = bonus
A severance is paid in some cases when the employer tells the employee to pack his bags. This is not a requirement but a "sorry we have to let you go" payment. If you leave voluntarily you will not get a severance payment.

A Bonus is paid to employees for doing a good job, because the company is making lots of money or other similar reason. If you are still employed by the company on the pay out date you will get the bonus. If you choose to leave the company and tell them before the pay out date, don't expect to get a bonus.

As far as telling the new employer you want to delay starting until you can get the payout from the old company? Talk about starting out on the wrong foot! If I had an offer out to a candidate and they came back with that I would reconsider their offer.

 

[sms]

winpop123, it really depends on the market and how badly the new employer wants to hire him/her. When I was in this situation, I made no bones about it. I told my new employer exactly how much bonus I was going to be leaving on the table by moving, and made it clear I was not going to do that. If he wanted me to move, he would have to do something with salary or sign on bonus to bring us together on the deal, or wait a few months for the bonus to be paid. If he had not been willing to do so, I would have been happy to stay at my previous employer.

The new employer gave me a sign on bonus that covered it and we had a deal. You only get what you negotiate, which is in my opinion morally neurtral, neither good nor bad, it just is. The reason that most engineers are so poorly paid, and the reason that most sales people are so well paid is that sales people understand the art of negotiation, and engineers are too timid to ask for what they want.

-The future's so bright I gotta wear shades!

 

[winpop123]

SMS The original post states that he has ALREADY accepted an offer. I agree with what you say about negotiating but only up front BEFORE an agreement is reached. Before an agreement is reached, use all means available to get your maximum pay. After and agreement is reached, the negotiating is over.

Going back and starting up the discussion to try and milk more money and or time out of a new employer you have made an agreement with shows a lack of integrity in my opinion.

If your house burns down a day before you start the new job then yeah maybe you ask to move your start date.

 

[ajack1]

To me at least there is a big difference between negotiating your terms of employment prior to an agreement being struck and going back after the event and asking for more.

The first is common practice be it in employment, buying a car, a house in fact many goods or services, however once that has been agreed it should be binding. I would not want anyone to do that to me so I do not do it to others, others will disagree I am sure.

 

[sms]

My apologies, in the discussion I missed that he had already accepted the offer.

Sorry Nate you're sol. Write off the money and go make the best of your new opportunity.

-The future's so bright I gotta wear shades!

 

[blfarrar]

If you leave your existing job -try to leave with a good relationship, most employers ring & ask for references - if you create bad feling this can follow you for a long time.
Also having a good source of a reference can be the key to getting a job later on in life

Bruce L Farrar.
Works Engineering Manager
Marshalls Mono PLC.Brookfoot Works.
Halifax W.Yorks UK