Firm is Not keeping their promise to give me a full year end bonus and I want to lateral Forum

[Anonymous User]

Recently lateraled about 3 months ago to a new firm. I was promised a full year end bonus and my firm is not really following through with that promise. I'm pissed and I am considering lateraling. I know it looks horrible that I'm already jumping after a few months, but given that I have zero faith that they'll match bonuses or the salary raise that just happened, I feel like the longer I stay, the longer I'll be being paid below market for the same amount of hours.

The question is, has anyone been in such a situation? Is it horrible if I mentioned that there was a compensation bonus issue at any upcoming lateral interviews? Would appreciate any thoughts on this issue.

[Anonymous User]

Do you have anything in writing clearly indicating they will give you this "full year end bonus?"

[Anonymous User]

I do, but it's very much legalese in that it has the caveats of being in good standing, and that ultimately whether to give a bonus is at the firm's discretion.

[Wanderingdrock]

I do, but it's very much legalese in that it has the caveats of being in good standing, and that ultimately whether to give a bonus is at the firm's discretion.

You screwed up letting them include that "discretion" bit (because that's categorically not a guaranteed year-end bonus) but if they otherwise made you understand you were guaranteed one as long as you hadn't, like, quit by bonus payday, this is absolutely a legitimate reason to lateral and that's how I would explain it to the firms you interview with. I would additionally use that as a negotiating tactic for a signing bonus - "As we have discussed, I lack confidence in my current firm due to their reneging on a promised bonus payment; the firm to which I lateral will be one I click with - as I feel I do with you - but also one that recognizes my value and instills confidence in me that it will continue to do so."

Best of luck.

[Anonymous User]

Recently lateraled about 3 months ago to a new firm. I was promised a full year end bonus and my firm is not really following through with that promise. I'm pissed and I am considering lateraling. I know it looks horrible that I'm already jumping after a few months, but given that I have zero faith that they'll match bonuses or the salary raise that just happened, I feel like the longer I stay, the longer I'll be being paid below market for the same amount of hours.

The question is, has anyone been in such a situation? Is it horrible if I mentioned that there was a compensation bonus issue at any upcoming lateral interviews? Would appreciate any thoughts on this issue.

Where you promised a 2021 year end bonus for joining in like November 2021? That seems...odd? To get a full bonus after working there for like a month in 2021? To me that just seems like it would be a signing bonus.

Or are you saying they promised you a 2022 year end bonus and you are just getting the feeling that they won't be giving that?

Also a ton of firms haven't announced matching raises yet so that isn't guaranteed.

[Anonymous User]

What firm is this? I’m about to lateral myself.

[Anonymous User]

The first question that would come to my mind if you said that during the hiring process would be whether you didn't get a full YE bonus is because of performance issues. I'm not saying that's the case for you since I have no clue who you are. I know it sucks feeling unappreciated, but you may be better off trying to wait out a year at the firm you are at and then lateral (your story would be it wasn't the right fit -- tried it for a year). The "not the right fit" also doesn't resonate well if you've only been there for 3 months -- makes it seem like you're not willing to give it a shot.

Anyway, that's just my two cents. And who knows, maybe it's hot enough of a market right now that a market paying firm who will keep their word won't give two shits. Either way, good luck!

[Anonymous User]

Have you talked to HR at your new firm? Did they say why they aren't paying? Are you sure it's not just a mixup in the paperwork? Knowing how some firms work, someone could have just lost the thread on that clause in your files. If not, then lightly dropping that this leaves a bad taste in your mouth (which makes you second guess your decision to join) may pressure them to just give you the rest. Paying you a few tens of thousands more is a lot cheaper than onboarding a new associate.

I don't mean to question you, but if they are "promising" full EOY bonuses for Nov laterals, they must really need help. Also, it seems unlikely that a firm offering effectively a full bonus worth of signing cash wouldn't be likely to match the new raises, either.

[12YrsAnAssociate]

Something sorta analogous happened to me - I understood the firm was going to cover my full moving expenses but the letter actually said that would be taxable. Moving ended up costing $20k and the check was $10k because of taxes. I just told them I was pissed they didn't hold up their end of the bargain, and HR pointed out that I read the letter wrong, but still gave me the extra$10k to keep me happy. Spent a long time at the firm after that ad it wasn't a big deal. I'd honestly tell HR or a partner that you work for that you think you've been shafted. You'll never have more leverage than now.

[Sad248]

I do, but it's very much legalese in that it has the caveats of being in good standing, and that ultimately whether to give a bonus is at the firm's discretion.

You screwed up letting them include that "discretion" bit (because that's categorically not a guaranteed year-end bonus) but if they otherwise made you understand you were guaranteed one as long as you hadn't, like, quit by bonus payday, this is absolutely a legitimate reason to lateral and that's how I would explain it to the firms you interview with. I would additionally use that as a negotiating tactic for a signing bonus - "As we have discussed, I lack confidence in my current firm due to their reneging on a promised bonus payment; the firm to which I lateral will be one I click with - as I feel I do with you - but also one that recognizes my value and instills confidence in me that it will continue to do so."

Best of luck.

I mean, I've never seen anyone receive a bonus while not in good standing, so I don't think that is a crazy precondition, and I think it would be a weird thing to push back on. But what do I know, maybe I'm prone to get screwed over in the future like this.

[Anonymous User]

I do, but it's very much legalese in that it has the caveats of being in good standing, and that ultimately whether to give a bonus is at the firm's discretion.

You screwed up letting them include that "discretion" bit (because that's categorically not a guaranteed year-end bonus) but if they otherwise made you understand you were guaranteed one as long as you hadn't, like, quit by bonus payday, this is absolutely a legitimate reason to lateral and that's how I would explain it to the firms you interview with. I would additionally use that as a negotiating tactic for a signing bonus - "As we have discussed, I lack confidence in my current firm due to their reneging on a promised bonus payment; the firm to which I lateral will be one I click with - as I feel I do with you - but also one that recognizes my value and instills confidence in me that it will continue to do so."

Best of luck.

I mean, I've never seen anyone receive a bonus while not in good standing, so I don't think that is a crazy precondition, and I think it would be a weird thing to push back on. But what do I know, maybe I'm prone to get screwed over in the future like this.

To be fair, if the phrase was literally "ultimately whether to give a bonus is at the firm's discretion" (not "ultimately whether to give OP a bonus is at the firm's discretion"), I might take that to mean that the full EOY bonus provisions are subject to whether the firm, in its discretion, gives bonuses to associates at all that year. But assuming OP is in good standing, it sounds like the firm has taken that discretion further.

Would be good to get some more info from OP. I really don't think a firm would offer the full bonus, sneak in some language like that, and then just not give it without an explanation. Biglaw sucks, but it's not that sinister.

[TigerIsBack]

Recently lateraled about 3 months ago to a new firm. I was promised a full year end bonus and my firm is not really following through with that promise. I'm pissed and I am considering lateraling. I know it looks horrible that I'm already jumping after a few months, but given that I have zero faith that they'll match bonuses or the salary raise that just happened, I feel like the longer I stay, the longer I'll be being paid below market for the same amount of hours.

The question is, has anyone been in such a situation? Is it horrible if I mentioned that there was a compensation bonus issue at any upcoming lateral interviews? Would appreciate any thoughts on this issue.

Where you promised a 2021 year end bonus for joining in like November 2021? That seems...odd? To get a full bonus after working there for like a month in 2021? To me that just seems like it would be a signing bonus.

Or are you saying they promised you a 2022 year end bonus and you are just getting the feeling that they won't be giving that?

Also a ton of firms haven't announced matching raises yet so that isn't guaranteed.

This has been very common this past year or 2, at least in corporate groups, with how busy things have been and the massive retention issues. I also don't think it was completely uncommon prior to COVID at the elite shops (and even some non-elite). You're leaving a firm 1 month before you would ostensibly have collected the EOY bonus, so the new firm pays that to you when they pay bonuses in order to get you to come join them ASAP and leave money on the table at your old firm.

[AssociateWQuestions]

Just lateral. This market is so tight, no one is going to care. Get a better signing bonus somewhere else that actually pays you what it says it will and move on. You've only been there 3 months, so who cares. No partner interviewing you is going to say, "Yeah, if my firm stiffed me on EOY comp, I would just stay and ride it out."

[Anonymous User]

Recently lateraled about 3 months ago to a new firm. I was promised a full year end bonus and my firm is not really following through with that promise. I'm pissed and I am considering lateraling. I know it looks horrible that I'm already jumping after a few months, but given that I have zero faith that they'll match bonuses or the salary raise that just happened, I feel like the longer I stay, the longer I'll be being paid below market for the same amount of hours.

The question is, has anyone been in such a situation? Is it horrible if I mentioned that there was a compensation bonus issue at any upcoming lateral interviews? Would appreciate any thoughts on this issue.

Where you promised a 2021 year end bonus for joining in like November 2021? That seems...odd? To get a full bonus after working there for like a month in 2021? To me that just seems like it would be a signing bonus.

Or are you saying they promised you a 2022 year end bonus and you are just getting the feeling that they won't be giving that?

Also a ton of firms haven't announced matching raises yet so that isn't guaranteed.

This has been very common this past year or 2, at least in corporate groups, with how busy things have been and the massive retention issues. I also don't think it was completely uncommon prior to COVID at the elite shops (and even some non-elite). You're leaving a firm 1 month before you would ostensibly have collected the EOY bonus, so the new firm pays that to you when they pay bonuses in order to get you to come join them ASAP and leave money on the table at your old firm.

I guess I am just thinking the concept seems to be here that it was a signing bonus, which I totally agree with everything you wrote. I moved in-house and in-house matched gave me a signing bonus to match my expected bonus at firm so that I moved earlier. But normally you end up getting that guaranteed upfront or at least in your first paycheck or two. If the firm just told the OP purely on a *timing* basis "let us pay you this [signing bonus] in a month when we pay other bonuses instead of right now" and now they are backtracking on paying entirely, to me that is 1100% reason to lateral and such a weird move for the firm I can't really understand it.

What kind of shitty firm renegs on their signing bonuses to laterals in this market based on like 2 months of performance? Unless OP literally shit the bed so bad on an assignment it cost them a client or something I think OP should name and shame them.