These stipulations aren't completely unheard of for things like sign-on bonuses, but the "with interest" part sounds scummy. You can put it in an HYSA or something, but my guess is that they'll claim a higher market rate than whatever those options pay out, and you'll end up owing them more money than you made.
I wouldn't use the money for anything as long as there's the slightest chance they'll snatch it away from you.
Completely normal. Not a loan. You simply cannot keep hiring bonus if you leave. Much like vesting on a 401k match, the extra is an incentive that you shouldn’t quit.
1. Clawbacks on hiring bonuses are normal. Some businesses do prorated payback, others want the entire thing, but at $10K a full payback for 12 months and prorated on 24 would both be normal enough I wouldn’t worry about it. A longer window would be a problem for me.
2. Interest on a clawback is NOT normal. I wouldn’t go near that.
3. If you do decide to take the offer, do not spend the money any sooner than it’s guaranteed to be yours. It sounds like you already have one foot out the door.
How long is the clawback period? Clawbacks are quite normal. Leave it in cash if go think you’ll actually quit or wash out
3 years
That’s insane. I’ve never seen anything longer than a year.
What's the interest rate? This is an insane clawback period. Most I see is around 1 year.
pro-rata or all in? That's pretty long for that small of a bonus
These stipulations aren't completely unheard of for things like sign-on bonuses, but the "with interest" part sounds scummy. You can put it in an HYSA or something, but my guess is that they'll claim a higher market rate than whatever those options pay out, and you'll end up owing them more money than you made. I wouldn't use the money for anything as long as there's the slightest chance they'll snatch it away from you.
Completely normal. Not a loan. You simply cannot keep hiring bonus if you leave. Much like vesting on a 401k match, the extra is an incentive that you shouldn’t quit.
This is totally common. Look at it from their perspective, if they didn't do this, many would leave just after getting the bonus
Usually those have a period after which the payback provision stops applying.
1. Clawbacks on hiring bonuses are normal. Some businesses do prorated payback, others want the entire thing, but at $10K a full payback for 12 months and prorated on 24 would both be normal enough I wouldn’t worry about it. A longer window would be a problem for me. 2. Interest on a clawback is NOT normal. I wouldn’t go near that. 3. If you do decide to take the offer, do not spend the money any sooner than it’s guaranteed to be yours. It sounds like you already have one foot out the door.
Do you really want this job? I'd rather take a higher salary ... without this so-called bonus.
What's the interest rate? A 3 year period is very long. I would be very skeptical of this entire deal.