Severance bonus
Severance bonus
(OP)
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.
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





RE: Severance bonus
So this is irrelevant. If you get something, then great, otherwise don't blow your new deal, and don't leave your old company looking like a money-grubbing job-hopper.
TTFN
RE: Severance bonus
I could just see it now: "You decide your leaving us, and you want us to pay you extra to leave? Get the _____ out of my office, and pack up your desk today!"
Or perhaps they will say: "Thank you for finding a reason for us to incur the cost of hiring a new person. You do deserve a bonus for that."
By the way if you do ask, and get it, please post how you did it on here. I would love to improve my income by switching often, getting pay raises, sign on bonuses, AND severance bonuses.
RE: Severance bonus
In your case, it definitely depends on how they decide to officially issue the bonus. If you were working there at the end of the fiscal year and it takes 2 months for accounting to cut the checks, you may get one. If you leave one day prior to the the fiscal year, you probably will get a happy life where the grass is greener.
--Scott
For some pleasure reading, try FAQ731-376
RE: Severance bonus
RE: Severance bonus
I got left out of a Christmas bonus once, except I was leaving in January, which was after the bonus was being given out. The next position made up for it in pay and experience.
RE: Severance bonus
I would talk to your new employer about delaying your start date and I would also be upfront about the reason. I wouldn't say anything to anyone at your present employer about leaving, if you do, kiss that bonus goodbye. Loyalty number one is to yourself and your family. A former supervisor of mine found himself in the same position and the rest of the people at his level divided his bonus amongst themselves. Go figure.....
Regards,
RLS
RE: Severance bonus
RE: Severance bonus
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RE: Severance bonus
RE: Severance bonus
If it was today would I do the same thing? Most probably. The experience and conditios of the other job were much better.
Of course, if I see just from an employee point of view, I would have deserved the bonus since I worked all the previous fiscal year. By the other way, the company doesn't give the bonus because it is nice, it gives as a way to retain employees and increase motivation.
Frankly speaking, I think that I agree with company's point of view even if in my case I lost most probably over a month's salary.
RE: Severance bonus
Some factors were different from your situation:
- It was an exceptional company.
- I didn't choose to leave, they downsized me.
- It was an individual bonus based on achievement of specific goals. The payroll department administered it, and there was no provision for forfeiture. I don't know if that was intentional, or an oversight.
Mike Halloran
Pembroke Pines, FL, USA
RE: Severance bonus
Why would someone expect a severance payment if they choose to leave employment? Maybe the company should instead demand repayment of any wasted training costs?
RE: Severance bonus
You choose to leave, you get nothing.
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RE: Severance bonus
corus
RE: Severance bonus
Wes C.
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Light travels faster than sound. That's why some people appear bright until you hear them speak.
RE: Severance bonus
1) Being employed during the whole time that the bonus award is based on.
2) Being an active employee on the day the bonus is paid.
Expecting a bonus after you have quit is not realistic.
Corus,
Sueing a compnay for a bonus that is paid after you quit is a joke. You have not fullfilled the 2 conditions I mentioned that entitle you to the bonus.
"Wildfires are dangerous, hard to control, and economically catastrophic."
Ben Loosli
Sr IS Technologist
L-3 Communications
RE: Severance bonus
Because I left, because the bonus was so unstructured and because I knew my leaving would cause difficulties for my boss, I didn't even ask about the bonus- nor did my boss bring it up.
All's well that ends well. I would have loved the $8,000, but to me, it just didn't seem right in my situation.
That said, if your bonus is structured, in writing and applies to work already served, your situation my call for still receiving it. I think it all depends on the particular situation.
Ed
www.engineerboards.com
RE: Severance bonus
If the new employer balks, ask about delaying your start date until after the bounus is paid. If he balks again, you have weigh the advantages of staying vs the advantages of leaving.
-The future's so bright I gotta wear shades!
RE: Severance bonus
RE: Severance bonus
This, to me, seems just as likely as the company giving the OP is "bonus" as "severance."
Wes C.
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Light travels faster than sound. That's why some people appear bright until you hear them speak.
RE: Severance bonus
Most folks who want to have their cake and eat it too end up a lard arse, choke on it, or both.
Brian
RE: Severance bonus
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.
RE: Severance bonus
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.
RE: Severance bonus
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.
RE: Severance bonus
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.
RE: Severance bonus
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.
RE: Severance bonus
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?"
RE: Severance bonus
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.
RE: Severance bonus
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.
RE: Severance bonus
RE: Severance bonus
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.
RE: Severance bonus
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!
RE: Severance bonus
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.
RE: Severance bonus
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.
RE: Severance bonus
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!
RE: Severance bonus
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