Losing Year End performance Bonus - new job

[Cletus]

Hi,

I have received a job offer and am concerned about losing my bonus with my current employer. Apparently there is an un-published company policy that an employee must stay through May 15 of the following year in order to collect the previous year's bonus. Below is what is stipulated in my contract:

Beside the fixed portion your remuneration package contains a discretionary variable bonus element that is subject to the (company confidential) up to 10% of your annual base salary. This discretionary bonus system is reviewed annually and subject to change. You will be notified of any changes to the bonus system in advance.

Indications from my boss are that I will be exceeding expectations in my performance review so I am just trying to determine if I have a leg to stand on in this. The contract is not specific enough but not sure if I will be able to do anything about this? The review period is for the 2014 calendar year if that makes a Difference.

Any feedback or strategy to manage this would be appreciated.

[Cottoneyes]

The bonus is 'discretionary' and forms part of your 'variable' pay. End of the day there is no guarantee you will get it if you stay or go

Weigh up the job offer carefully, and take into account that if you go you are very unlikely to see the bonus paid. Is the short term pay going to be worth it long term, how sure are you with the company going to, and how confident in doing the job. Did the company seek you out or did you apply, if they came to you first, ask for a sign on bonus to replace the lost bonus.

[Tiger]

Cotton Eyes is spot on - discretionary is discretionary. All orgs I'm aware of who have any kind of bonus policy vary their policy year to year and absolutely have a requirement that you must be working at whatever time of year - in your case that is May 15.

Seconding previous advice, weigh up the pros and cons of the new job and think outside the square (long term big picture) when making your decision whether to move on or not. Often, money is not the most important aspect at the end of the day. Fact is your current employer could well decide to reduce or even stop paying bonuses down the track if business wasn't going well - that is life.

So simply put, forget the bonus and accept the new job or reject the new job and stay put.

Tiger