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Hi all,

Thinking of lateraling firms this fall and looking for advice. With fall bonus distribution date already announced, I am certainly wanting to stick around till that hits before leaving. The problem is potential new firm is pushing for a start as soon as possible, and at current firm anticipate an extremely busy few weeks following date of actual disbursement (to where I would like to give them heads up before disbursement date).

Can I give two week notice one week before fall bonus is set to hit (I.e. would be quitting the week after it hits account), or is there risk the firm (V20) would not payout?

Alternatively, if plans were to change and I waited for year end bonus, my firm typically announces bonuses, then pays out a few weeks following. Is it common practice/does anyone give notice after bonuses are announced, but before it hits account (so that they are still employed on date of disbursement) or is it universally standard to wait for it to hit the bank before giving any notice?

Insight from other laterals would be much appreciated!!

At my V20, I know from speaking with departing associates that the firm will pay out a bonus if your vacation time extends to the payment date (even if you are not otherwise employed at that date). But I think this will be firm-specific.

I think the conventional wisdom on here is to avoid giving notice until the money is cleared in your bank account because it's a lot of money at stake that you don't want to risk the firm deciding not to pay out.

Also just tell your new firm you want to wait to collect bonus at current firm. If they want you to start sooner than that, ask them to pay the amount of that bonus as a signing bonus.

TigerIsBack wrote: ↑

Mon Jul 26, 2021 9:28 am

I think the conventional wisdom on here is to avoid giving notice until the money is cleared in your bank account because it's a lot of money at stake that you don't want to risk the firm deciding not to pay out.

Also just tell your new firm you want to wait to collect bonus at current firm. If they want you to start sooner than that, ask them to pay the amount of that bonus as a signing bonus.

Agree with both points. The risk that the firm won't pay is greatest when you're going to another firm; some partners take it very personally and will try to screw you over any way they can.

My central dilemma is that waiting to give notice until after the payment clears will put my team in a more difficult spot than giving notice just a bit earlier.

Tough call between wanting to do right by my team and self-interest to secure the bonus.

Has anyone heard of people giving slightly earlier notice, staying until the week following disbursement, and having the bonus not paid out? I understand the prevailing consensus is to wait for it to clear which I’m guessing would be based on horror stories (like vindictive partners), but wondering in practice at V20s how it typically goes down.

Anonymous User wrote: ↑

Mon Jul 26, 2021 2:06 pm

My central dilemma is that waiting to give notice until after the payment clears will put my team in a more difficult spot than giving notice just a bit earlier.

Tough call between wanting to do right by my team and self-interest to secure the bonus.

Has anyone heard of people giving slightly earlier notice, staying until the week following disbursement, and having the bonus not paid out? I understand the prevailing consensus is to wait for it to clear which I’m guessing would be based on horror stories (like vindictive partners), but wondering in practice at V20s how it typically goes down.

it's a tough call and both timings have their upsides and downsides.

in practice you're probably safe. the horror stories are not exactly common, they're horror stories. do you have any reason to think a partner would actually hold the bonus after announcement?
On the other hand, how hurt is your team if you wait?

Anonymous User wrote: ↑

Mon Jul 26, 2021 2:06 pm

My central dilemma is that waiting to give notice until after the payment clears will put my team in a more difficult spot than giving notice just a bit earlier.

Tough call between wanting to do right by my team and self-interest to secure the bonus.

Has anyone heard of people giving slightly earlier notice, staying until the week following disbursement, and having the bonus not paid out? I understand the prevailing consensus is to wait for it to clear which I’m guessing would be based on horror stories (like vindictive partners), but wondering in practice at V20s how it typically goes down.

The bolded really isn't a tough call - if there's anyone on the team that you would've realistically kept in touch once you left, they're enough of a friend/decent person to understand you doing what's best for you and making 100% positive that you get paid out the money you earned.

People leave every day and firms manage to go on, barely missing a beat. Nobody will think of you in 3 months; do what you can to make sure you get every penny the firm owes you.

M458 wrote: ↑

Mon Jul 26, 2021 2:41 pm

Anonymous User wrote: ↑

Mon Jul 26, 2021 2:06 pm

My central dilemma is that waiting to give notice until after the payment clears will put my team in a more difficult spot than giving notice just a bit earlier.

Tough call between wanting to do right by my team and self-interest to secure the bonus.

Has anyone heard of people giving slightly earlier notice, staying until the week following disbursement, and having the bonus not paid out? I understand the prevailing consensus is to wait for it to clear which I’m guessing would be based on horror stories (like vindictive partners), but wondering in practice at V20s how it typically goes down.

The bolded really isn't a tough call - if there's anyone on the team that you would've realistically kept in touch once you left, they're enough of a friend/decent person to understand you doing what's best for you and making 100% positive that you get paid out the money you earned.

People leave every day and firms manage to go on, barely missing a beat. Nobody will think of you in 3 months; do what you can to make sure you get every penny the firm owes you.

Only one data point here, but my understanding at Skadden at least is that it doesn't matter when you quit or how much notice you give, they will yank your bonus if it hasn't already been paid out. Doesn't matter how close you are to the payout date, or how many hours you billed. This is all rumor, so take with a grain of salt. I have also heard that exceptions have been made if you're going in-house to a client (they don't want the bad blood), but not in a lateral context.

To echo the others, you just have leave when you have to leave. Your team will understand, or they should, anyway. If you're a real mensch you'll craft some really beautiful and detailed handoff emails with all the necessary attachments and background and you will be remembered very fondly on that basis alone.

so many associates don't understand that their relationship with their firm is in a lot of instances adversarial

In my experience your firm can replace you at the drop of a hat. I held on too long at a firm because I felt bad for the people that would be taking over my work, but they figured it out easily and it was fine.

Always better to be the one who has the money than the one chasing the money. Let that check clear.