Has anyone heard of a retention bonus with a clawback period of 3 years? Like you get paid in 3 installments but you have to pay back 100 percent of the money if you work a day less than 3 years?

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Sounds like indentured servitude.

likefunny

No. Run.

likefunny

Yes it is standard in retention bonuses to have a payback Clause if you fail to meet the expectations of the contract

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That sounds like essentially no bonus at all. Best not to get it than to have to tuck it away somewhere so you can give it back later.

I got an "award, not a retention bonus, really" that pays out 25% after 1 and 2 years with the remaining 50% after 3 years. Sum is about half my yearly salary. No pay back necessary, either get it when you're still there or don't if you're not.

Management also has option to dole out retention bonus, which has a 1 year claw back period.

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Thank you for all your answers. If you have to pay back the money in full, there is no way to recover the taxes that you may have already paid right? So you would lose all the tax money?

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You would get a corrected w2

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That’s aggressive. Standard is 1 year unless we are talking about millions at a senior level.

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One year? Yes. Three?!??? No!

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