Quitting job, taking a pay cut and forfeiting large bonus

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njdealguy
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by njdealguy »

Congrats, what a great position to be in and decision to make, way to go :)

Just out of curiosity wondering how you manage to have such low living expenses (relatively speaking) while living "close to work" which implies your actually going to the office, not remote.

Can only think of two areas with presence of FAANG companies and high paying hedge fund jobs (NYC and Bay area) and I think can rule out the Bay area, cant fathom just 40k expenses there. I'd deduce the FAANG offer is from either GOOG or FB since AAPL can only be in the Bay area and AMZN caps its base salary at 160k for all levels.

If its one of those companies I think they are going to give the option of permanent WFH for whoever wants it which frees you to live anywhere in the country as an added bonus if you want to, but still I'd seek to spend good deal more than 40k at your position!
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market timer
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by market timer »

Why not try to do both jobs until you get the bonus in March? :happy

https://www.wsj.com/articles/these-peop ... 1628866529
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ClevrChico
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by ClevrChico »

market timer wrote: Sat Sep 11, 2021 8:11 am Why not try to do both jobs until you get the bonus in March? :happy

https://www.wsj.com/articles/these-peop ... 1628866529
That is a great article and pretty interesting!

One catch is that this could be caught by an employment database: https://en.wikipedia.org/wiki/The_Work_Number
There's a high chance big tech companies use this. The hedge fund, maybe. I retrieved my own report, and it's kind of shocking the detail it has.

Would it be a conflict of interest? Would a background check and HR be savvy enough to catch this, or anyone even care during Covid? I'm not sure. If the hours don't overlap, I don't see an automatic problem. People have been working multiple jobs a long time.

A bigger question I have is why companies require insane hours and burnout their best employees to the point they leave.
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deanmoriarty
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by deanmoriarty »

njdealguy wrote: Sat Sep 11, 2021 8:03 am Congrats, what a great position to be in and decision to make, way to go :)

Just out of curiosity wondering how you manage to have such low living expenses (relatively speaking) while living "close to work" which implies your actually going to the office, not remote.

Can only think of two areas with presence of FAANG companies and high paying hedge fund jobs (NYC and Bay area) and I think can rule out the Bay area, cant fathom just 40k expenses there. I'd deduce the FAANG offer is from either GOOG or FB since AAPL can only be in the Bay area and AMZN caps its base salary at 160k for all levels.

If its one of those companies I think they are going to give the option of permanent WFH for whoever wants it which frees you to live anywhere in the country as an added bonus if you want to, but still I'd seek to spend good deal more than 40k at your position!
If one does not have kids, it is not that impossible. I lived for many years in the Bay Area on that much, San Francisco specifically.

With some search skills, $2,000 a month gets you a studio within 20 minutes of public transportation to a downtown office (not in Tenderloin, let’s be clear). Then the budget is roughly $500 grocery and bills, and $500 entertainment (for me that means restaurants and budget for travel both domestic and international, typically a couple trips a year to Hawaii/Europe/SE Asia). I’ve done that and I have the excel sheets tracking my expense history since 2010. At some point I upgraded to a much nicer one bedroom for $3,000 splitting rent with my partner.

These days perhaps with the increased rents the budget would be higher than $2,000, but to be honest I know two young couples who just recently rented decent one bedroom apartments for less than $2,500 in really good areas (north beach and fisherman’s wharf, both a nice walk away from downtown).
Last edited by deanmoriarty on Sat Sep 11, 2021 9:12 am, edited 1 time in total.
MikeG62
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by MikeG62 »

OP, I am glad to hear you survived the ordeal posted about back in the spring. That sounded horrible and I felt badly you were in that position when I saw that thread back then.

While you'd be leaving a lot of $ on the table, given your current NW and the opportunity at the FAANG company you have in hand (and the fact you really want out of your current situation) I think I'd take the new job and walk away from the $. As others have said, you have way more money than you need based upon your current level of spending. Plus, you will continue to feather the nest quite significantly at the new position. Life is truly good and you are fortunate to be in this position. Life is short, and given your current financial position, you should not spend one more day in a position or at a company you don't want to be at. After all, they call it F-you money for a reason.

Good luck whatever you decide to do. As I said above, I am glad you survived that horrible situation from earlier this year.
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epictetus
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by epictetus »

sounds like you are in danger of focusing too much on a one-time event/issue.
and letting your concern about the one-time event/issue derail your long-term plans
Focus on what you can control
chenzi
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by chenzi »

One question if you dont mind Op,
Is this a E7/L7 position. I have a couple of FAANG offers and starting the negotiations and am curious.
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deanmoriarty
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by deanmoriarty »

chenzi wrote: Mon Sep 13, 2021 11:12 am One question if you dont mind Op,
Is this a E7/L7 position. I have a couple of FAANG offers and starting the negotiations and am curious.
Yes this is the equivalent level.
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8foot7
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by 8foot7 »

deanmoriarty wrote: Fri Sep 10, 2021 7:47 am ... will be just $300k (prorated by the departure date), as opposed to $300k + $200k + $800k. F
Turn the question on its head. Would you spend $1,000,000 to buy the FAANG job?
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deanmoriarty
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by deanmoriarty »

8foot7 wrote: Mon Sep 13, 2021 12:17 pm
deanmoriarty wrote: Fri Sep 10, 2021 7:47 am ... will be just $300k (prorated by the departure date), as opposed to $300k + $200k + $800k. F
Turn the question on its head. Would you spend $1,000,000 to buy the FAANG job?
That seems a silly way to look at it. If I stay until March 2022 and then quit, I’m going to get $1M (with 50% haircut of course) but I’m not going to have another job lined up that pays as much as the FAANG offer. It required way too many months of negotiation and luck in finding the right team. The compensation I was offered is above the range for my level, in tech.

So, after four years from today, it is likely that I will come out of pocket compared to quitting now and accepting the FAANG offer.

Remember I hate my current job, it’s not a long term career.
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8foot7
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by 8foot7 »

deanmoriarty wrote: Mon Sep 13, 2021 12:22 pm
8foot7 wrote: Mon Sep 13, 2021 12:17 pm
deanmoriarty wrote: Fri Sep 10, 2021 7:47 am ... will be just $300k (prorated by the departure date), as opposed to $300k + $200k + $800k. F
Turn the question on its head. Would you spend $1,000,000 to buy the FAANG job?
I’m going to get $1M (with 50% haircut of course) but I’m not going to have another job lined up that pays as much as the FAANG offer.
That is exactly my point. Not getting $1 million because you take the FAANG job now is functionally equivalent to paying $1 million you already have in order to take the FAANG job now. Is it worth that to you?
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deanmoriarty
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by deanmoriarty »

8foot7 wrote: Mon Sep 13, 2021 12:25 pm
deanmoriarty wrote: Mon Sep 13, 2021 12:22 pm
8foot7 wrote: Mon Sep 13, 2021 12:17 pm
deanmoriarty wrote: Fri Sep 10, 2021 7:47 am ... will be just $300k (prorated by the departure date), as opposed to $300k + $200k + $800k. F
Turn the question on its head. Would you spend $1,000,000 to buy the FAANG job?
I’m going to get $1M (with 50% haircut of course) but I’m not going to have another job lined up that pays as much as the FAANG offer.
That is exactly my point. Not getting $1 million because you take the FAANG job now is functionally equivalent to paying $1 million you already have in order to take the FAANG job now. Is it worth that to you?
I am estimating that by year 4 I will still very likely come out way ahead of any other alternative. So, it does seem worth it to me.
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8foot7
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by 8foot7 »

deanmoriarty wrote: Mon Sep 13, 2021 12:27 pm
8foot7 wrote: Mon Sep 13, 2021 12:25 pm
deanmoriarty wrote: Mon Sep 13, 2021 12:22 pm
8foot7 wrote: Mon Sep 13, 2021 12:17 pm
deanmoriarty wrote: Fri Sep 10, 2021 7:47 am ... will be just $300k (prorated by the departure date), as opposed to $300k + $200k + $800k. F
Turn the question on its head. Would you spend $1,000,000 to buy the FAANG job?
I’m going to get $1M (with 50% haircut of course) but I’m not going to have another job lined up that pays as much as the FAANG offer.
That is exactly my point. Not getting $1 million because you take the FAANG job now is functionally equivalent to paying $1 million you already have in order to take the FAANG job now. Is it worth that to you?
I am estimating that by year 4 I will still very likely come out way ahead of any other alternative. So, it does seem worth it to me.
:sharebeer Enjoy the new gig then!
dcw213
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by dcw213 »

I remember the OP as well and feeling bad for you and worried on your behalf. You should leave the job no question and hope that the FAANG makes you happier. If it doesn't, leave that too. Unless you love the work, no reason for you to be working that many hours. You do need to try to find out what you want in life as it seems like currently you exist solely to work for others.
Afty
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by Afty »

vanbogle59 wrote: Fri Sep 10, 2021 8:40 am
deanmoriarty wrote: Fri Sep 10, 2021 7:47 am the endless work hours on weekdays and weekends.
I have 2 friends that quit FAANG for precisely these reasons. Neither was AMZN.
Frying pan, fire?

Best of luck.
Surely you have the leverage to create a work-life balance that makes you happy.
I was previously an L6 tech lead/manager at what I’m guessing is the same FAANG the OP is considering. In almost 10 years there, I rarely worked outside of 9a-6 pm weekdays. WLB was far better than popularly understood. That said, there were some teams that had much worse WLB, but on the whole I’d guess my experience was pretty representative.

A second thought — this is an impressive offer for an L7. A typical L7 in the Bay Area might earn $700-800k in total comp. Then you have to consider refresher grants. Assuming OP performs well, they will receive yearly refresher equity grants which will stack with their new hire grant. By year 4 they will likely be earning substantially more since they will have 1/5 of their new hire grant left (hopefully with stock price appreciation) + 3 year of accumulated refresher grants also vesting. I would absolutely take this offer given what the OP has posted previously about their current job.
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deanmoriarty
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by deanmoriarty »

Afty wrote: Mon Sep 13, 2021 3:09 pm
A second thought — this is an impressive offer for an L7. A typical L7 in the Bay Area might earn $700-800k in total comp.
Thank you for your validation. The higher than average numbers are indeed exactly why this opportunity is so hard to pass on (and I likely won’t pass on it). It took two months of negotiation, bluffing, and showing my current comp numbers at the hedge fund for them to basically grant me those numbers. I know it was a lot of luck and there are slim chances I could get another one like that.
nonemoreyears
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by nonemoreyears »

vitaflo wrote: Fri Sep 10, 2021 9:27 am
deanmoriarty wrote: Fri Sep 10, 2021 8:46 am
vanbogle59 wrote: Fri Sep 10, 2021 8:40 am
deanmoriarty wrote: Fri Sep 10, 2021 7:47 am the endless work hours on weekdays and weekends.
I have 2 friends that quit FAANG for precisely these reasons. Neither was AMZN.
Frying pan, fire?

Best of luck.
Surely you have the leverage to create a work-life balance that makes you happy.
I happen to know the hiring manager from a previous life (that’s how I got a foot in the door), and I incredibly stressed the point that I am not looking to work on weekends and keep my workload to 50 hours a week and take plenty of vacations. I mentioned multiple times that better WLB was a significant reason for leaving, and that if they thought I wasn’t a good fit for the job because of this, I would totally understand.

There is no way any FAANG can be worse than the cut-throat hedge fund I am currently in!

If I get tricked this time, I can say I did all I could to prevent it!
FAANG's are not known for good WLB. It's partly why the pay is so ridiculous. That said, everything is relative and compared to your current gig the new job will probably feel like a walk in the park.

Given you've gone thru rounds of negotiation and they know where you're coming from (no surprises on your end), I'd leave your current gig tomorrow and never look back. If all you're thinking about is money you're going to make bad choices. And I'm not even sure this is really taking a pay cut when you consider your hourly rate for time worked.
It is definitely possible to have good WLB at a FAANG, even at those compensation levels. It can be very team dependent though. You may have to put in some extra effort initially to establish yourself, but the fact that OP knows the hiring manager bodes well there also.

I would also advise OP to evaluate all numbers post-tax when weighing the situation. The numbers are still large, but it might make it a little easier to leave that bonus on the table.
helloeveryone
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by helloeveryone »

deanmoriarty wrote: Fri Sep 10, 2021 7:47 am Hello Bogleheads,

Last time I posted about my work situation I was in a very dark place: viewtopic.php?f=2&t=313541

Since then, I am happy to say I survived. It never got easier, but I learned how to cope with the stress, set expectations with the business and just accept the endless work hours on weekdays and weekends.

I got paid my full bonus for 2020 in March 2021, and after my one year anniversary I started looking around for new opportunities.

I managed to get in touch with a well known FAANG company and interviewed for what I think would be a good position. I negotiated significantly and used my current compensation as leverage, and this is my new offer:

- Signon: $40k
- Salary: $290k
- Yearly target bonus: 25% of salary
- Equity: $2.3M RSU over 4 years, with vesting schedule 30% 30% 20% 20%

This is my current compensation (at a hedge fund working on tech):

- Salary: $300k
- Performance bonus: ~$800k (paid in March of the following year as a single payment as long as one is not under notice on the payment day)

Given the way my current compensation is structured, if I leave before March 2022 I will forfeit the entire bonus earned in 2021, which will amount to about $800k (the exact amount gets announced in December).

On top of this, I am obligated to repay $200k (gross amount) for an extra bonus that was given to me early in 2021, if I leave the company before the end of 2022. I actually saved the net amount in a HYSA, so I will just have to come out of pocket for the gross portion until tax time (I wish I had invested it!).

This means my effective compensation for 2021 at my current company will be just $300k (prorated by the departure date), as opposed to $300k + $200k + $800k. Frankly, with the amount of effort I put in this year, it stinks. However, there is no way the FAANG company is going to wait until I get my March payment, and subsequent notice period. They want me to start ASAP, they gave me at most a ~November start date. I already squeezed everything I could during the negotiation.

I am 100% sure I do not want to be in my current company long term, but I could still tolerate the environment until March 2022 in order to get the 2021 bonus. However, that would mean turning down this FAANG opportunity, which was not easy to come by.

This new position will do me well, it will be in a friendly environment, I will move back from finance to tech where I belong, and I will be exposed to world class technology with Internet-scale systems that will grow my experience dramatically, perhaps in the optics of one day creating my own software company. And, I will work less hours and with less stress (it’s not AMZN!).

As to why I ended up with this poor timing: I actually started engaging with the FAANG company in May, and I highly underestimated the amount of time it took to get to an offer, the process had so many steps and probably close to 30 conversations with people. Had the offer come in late May, the opportunity cost of the 2021 bonus would have been small. But now that we are talking about October as a last day of work, the impact is more significant.

I would appreciate some boglehead perspective.

My current thinking is that it might not be that insane to leave: the earlier I join the earlier I lock the FAANG RSU price for the entire grant, whose price could easily go up (or down!) 30% between here and March 2022, causing a delta of $800k in compensation anyway…

A recap of my financial situation:

- $3.5M liquid net worth, almost entirely in a 80/20 three fund portfolio.
- $4M illiquid equity in a pre IPO company (ex employer). I could liquidate at a slight discount and realize $3.xM now on the secondary market, but I will gamble this as I already sold a lot of shares over the years in secondary transactions at much lower prices, so this is the sweet spot for me on risk vs regret.
- I do not own anything outside my financial assets, and I live in a rented one bedroom apartment close to work.
- Total living expenses (excluding employer subsidized healthcare) are about $40k/y, relatively constant over the past 10 years. My spreadsheet for 2021 estimates total expenses at $39k.
- 35 years old, in a long-term relationship with no plans of getting married or kids (partner agrees, we’ve been together 5 years and these decisions are still as strong as ever)

Thanks for reading my long post!
Leave now. Don’t be miserable until March 2022 then walk away to a job nowhere near as good as what you just negotiated.

Just look at it as you had a full time paying job, will transition to new job with new paycheck. No gap in pay, and a job you’ll be much happier with with a promising long term outlook
tmhudg
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by tmhudg »

Let's pretend you walked out of the hedge fund job the week after you discovered what it was. You had to pay back the relo money and that pissed you off but you got out of that madness - Phew!

A year passed and, living off your savings, you found this new FAANG job that pays a ton and is more up your alley.

All's good in the end - you are just out the 40K and the savings you burned. You would take that right! Would you look back and think "Well maybe if I had stayed I could get another 800K"?

But wait, that's not what happened. You stuck it out, were highly compensated and didn't have to pay back the relo expenses! Okay, you were run ragged and probably lost a year extra of your life but you also learned that you don't want to work in finance and that you can endure some really tough times. Probably learned a lot about yourself frankly.

You have come out waaay ahead of where you might have been. Reap the rewards of the harrowing journey you have made it through and don't pine away for money you don't need.
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beyou
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by beyou »

I have worked mostly in fintech and have many friends/colleagues who do also.
There is no guarantee of receiving what you think you would lose by leaving.
Hedge funds rarely last very long, and can be riding high and then have a spectacular failure.
You could lose any bonus promised and your job.

Also given how long it took to get the offer, I wouldn't want to do that again next year.

My advice, take the offer and sell the equity from prior employer to diversify your investments.
Last edited by beyou on Mon Sep 13, 2021 8:35 pm, edited 1 time in total.
tjtv
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by tjtv »

deanmoriarty wrote: Fri Sep 10, 2021 7:47 am However, there is no way the FAANG company is going to wait until I get my March payment, and subsequent notice period. They want me to start ASAP, they gave me at most a ~November start date.
If you take the FAANG job, and it seems like you should, why would you defer your start date until ~November at this point? You'd just be working another 2 months of horrible WLB for which you will not earn any bonus. Might as well get started working the FAANG job ASAP and start earning towards the bonus there.
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deanmoriarty
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by deanmoriarty »

tjtv wrote: Mon Sep 13, 2021 8:06 pm
deanmoriarty wrote: Fri Sep 10, 2021 7:47 am However, there is no way the FAANG company is going to wait until I get my March payment, and subsequent notice period. They want me to start ASAP, they gave me at most a ~November start date.
If you take the FAANG job, and it seems like you should, why would you defer your start date until ~November at this point? You'd just be working another 2 months of horrible WLB for which you will not earn any bonus. Might as well get started working the FAANG job ASAP and start earning towards the bonus there.
Haha I’m not a robot. I’ll give two weeks notice and then take one full month off. I haven’t taken one single PTO day since when I started this new job in April 2020… can’t start something new without a long break!
dboeger1
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by dboeger1 »

deanmoriarty wrote: Mon Sep 13, 2021 8:32 pm
tjtv wrote: Mon Sep 13, 2021 8:06 pm
deanmoriarty wrote: Fri Sep 10, 2021 7:47 am However, there is no way the FAANG company is going to wait until I get my March payment, and subsequent notice period. They want me to start ASAP, they gave me at most a ~November start date.
If you take the FAANG job, and it seems like you should, why would you defer your start date until ~November at this point? You'd just be working another 2 months of horrible WLB for which you will not earn any bonus. Might as well get started working the FAANG job ASAP and start earning towards the bonus there.
Haha I’m not a robot. I’ll give two weeks notice and then take one full month off. I haven’t taken one single PTO day since when I started this new job in April 2020… can’t start something new without a long break!
The month off is a good idea. The 2 weeks notice is probably the right thing to do, but man, if it were me, I'd tell the hedge fund to stick their hedge where the sun don't shine and leave yesterday. To be fair, I'm not really a career man, nor do I have great aspirations for working in corporate America the rest of my life, so I'm probably a little more cavalier about screwing over abusive employers than you are at your level of compensation, haha.
tjtv
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by tjtv »

One other thing to think about depending on exactly which FAANG you're joining, I'm guessing it's G based on the front loaded RSU vesting you posted about........G's policy is that if you join in November 2021 you will be eligible for an RSU refresher at the end of 2022, whereas if you were to join in March of 2022 you would not be eligible for any refresher at all, not even on a prorated basis, at end of 2022 year. At your level I'm sure that refreshers are >$300k per year, but I suppose it's also possible that those refresher policies aren't strictly applied at higher levels like yours but it is something to think about. If the lack of refresher at end of year 2002 is indeed true, then it makes the delta between what you'd make by staying at the hedge fund until March 2022 compared to leaving now a bit smaller than what you wrote in your original post.

But really, this shouldn't be a financial decision for you anyway.
jebco
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by jebco »

It sounds like you don't need the money, so quitting the job just makes sense. The mental health gains alone are worth the lost money. Living with stress takes years off your life and makes the years you do have worse.
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by KyleAAA »

vitaflo wrote: Fri Sep 10, 2021 9:27 am
deanmoriarty wrote: Fri Sep 10, 2021 8:46 am
vanbogle59 wrote: Fri Sep 10, 2021 8:40 am
deanmoriarty wrote: Fri Sep 10, 2021 7:47 am the endless work hours on weekdays and weekends.
I have 2 friends that quit FAANG for precisely these reasons. Neither was AMZN.
Frying pan, fire?

Best of luck.
Surely you have the leverage to create a work-life balance that makes you happy.
I happen to know the hiring manager from a previous life (that’s how I got a foot in the door), and I incredibly stressed the point that I am not looking to work on weekends and keep my workload to 50 hours a week and take plenty of vacations. I mentioned multiple times that better WLB was a significant reason for leaving, and that if they thought I wasn’t a good fit for the job because of this, I would totally understand.

There is no way any FAANG can be worse than the cut-throat hedge fund I am currently in!

If I get tricked this time, I can say I did all I could to prevent it!
FAANG's are not known for good WLB. It's partly why the pay is so ridiculous. That said, everything is relative and compared to your current gig the new job will probably feel like a walk in the park.

Given you've gone thru rounds of negotiation and they know where you're coming from (no surprises on your end), I'd leave your current gig tomorrow and never look back. If all you're thinking about is money you're going to make bad choices. And I'm not even sure this is really taking a pay cut when you consider your hourly rate for time worked.
Amazon and FB aren't. Google is actually famous for great WLB and Apple and Netflix both have mixed reputations based on the group you're in. YMMV, but great WLB exists in abundance or at least in pockets at all FAANG companies.
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deanmoriarty
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by deanmoriarty »

Update: I gave my notice yesterday, in an extremely polite and respectful way. My management was saddened, and asked if there’s anything they could do for me to reconsider. I said no and that my mind was made up. After a few hours, they called me and shared how my compensation will change if I decide to stay:

- Performance bonus for the year 2021 will be a guaranteed (guaranteed in writing) $1.4M to be paid in March 2022 (from the original $800k I was expecting).
- I will receive immediately an additional $200k cash bonus, to be paid back if I leave before one year.
- The above numbers, when summed to my salary and the other bonus received, would bring my compensation for the year to $2M.
- They are willing to start transitioning me to new roles that suit my interest better.

They said: “we know you said you have made up your mind, but we want to show you how we value your contributions and make it difficult to leave”.

I am still leaning towards the FAANG company without even mentioning this counter offer, there is not a single inch left of negotiation with them given how long it took to get to these numbers (and as another knowledgeable poster mentioned above, the offer is unusually higher than the average for the level I’m being considered).
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AllMostThere
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by AllMostThere »

deanmoriarty wrote: Thu Sep 16, 2021 3:07 pm Update: I gave my notice yesterday, in an extremely polite and respectful way. My management was saddened, and asked if there’s anything they could do for me to reconsider. I said no and that my mind was made up. After a few hours, they called me and shared how my compensation will change if I decide to stay:

- Performance bonus for the year 2021 will be a guaranteed (guaranteed in writing) $1.4M to be paid in March 2022 (from the original $800k I was expecting).
- I will receive immediately an additional $200k cash bonus, to be paid back if I leave before one year.
- The above numbers, when summed to my salary and the other bonus received, would bring my compensation for the year to $2M.
- They are willing to start transitioning me to new roles that suit my interest better.

They said: “we know you said you have made up your mind, but we want to show you how we value your contributions and make it difficult to leave”.

I am still leaning towards the FAANG company without even mentioning this counter offer, there is not a single inch left of negotiation with them given how long it took to get to these numbers (and as another knowledgeable poster mentioned above, the offer is unusually higher than the average for the level I’m being considered).
Wow, this thread has been very interesting to read. Many moving pieces now with the updated proposal to stay. All I can add is to remind you that you started down this path for a reason and that reason is still in existence. Money aside, the only thing that may change that reason is the last bullet that they are willing to transition you to new roles that suit your interest better. Not sure what this would entail, but this may be worth investigating. I would be concerned the original reason for moving would pop back up again even with a new role. You seem to have an excellent handle on weighing the options available to you in a methodical manner. You will make the right decision on what's best for YOU.
It is not about how much you make, it is about how much you keep and how well you invest it. - Author Unknown | Don't buy any annuity. Your future self or your heirs will thank you. - Author AllMostThere
tj
Posts: 5248
Joined: Thu Dec 24, 2009 12:10 am

Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by tj »

deanmoriarty wrote: Thu Sep 16, 2021 3:07 pm Update: I gave my notice yesterday, in an extremely polite and respectful way. My management was saddened, and asked if there’s anything they could do for me to reconsider. I said no and that my mind was made up. After a few hours, they called me and shared how my compensation will change if I decide to stay:

- Performance bonus for the year 2021 will be a guaranteed (guaranteed in writing) $1.4M to be paid in March 2022 (from the original $800k I was expecting).
- I will receive immediately an additional $200k cash bonus, to be paid back if I leave before one year.
- The above numbers, when summed to my salary and the other bonus received, would bring my compensation for the year to $2M.
- They are willing to start transitioning me to new roles that suit my interest better.

They said: “we know you said you have made up your mind, but we want to show you how we value your contributions and make it difficult to leave”.

I am still leaning towards the FAANG company without even mentioning this counter offer, there is not a single inch left of negotiation with them given how long it took to get to these numbers (and as another knowledgeable poster mentioned above, the offer is unusually higher than the average for the level I’m being considered).
How long will it take you to earn $2M with the FAANG company? How much more free time will you have? How much less will you hate trying a differnet job?
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deanmoriarty
Posts: 414
Joined: Tue Jan 28, 2014 1:19 am

Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by deanmoriarty »

tj wrote: Thu Sep 16, 2021 3:23 pm
How long will it take you to earn $2M with the FAANG company? How much more free time will you have? How much less will you hate trying a differnet job?
As I alluded to, it is unlikely that my decision will change at this point, I’ll just need to find the courage to say no one more time. I was just posting an update given all the users who spent time giving me some advice. :sharebeer
SubPar
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Joined: Mon Apr 27, 2020 11:48 am

Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by SubPar »

I have heard stats thrown around that the vast majority of employees who accept a counter to stay at existing employer end up leaving within the next 12 month anyhow (or something along those lines).

During the interview process with the fund, you seemed to be offered an image of the company's culture that didn't end up being a faithful representation. I wouldn't be surprised if the "promise" to restructure your responsibilities fails to yield a materially better WLB/working arrangement.

Anyhow, congrats! Insane amount of money either way, and the real upside seems to be more robust non-monetary benefits.
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NewMoneyMustBeSmart
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Re: Quitting job, taking a pay cut and forfeiting large bonus

Post by NewMoneyMustBeSmart »

deanmoriarty wrote: Thu Sep 16, 2021 3:38 pm
tj wrote: Thu Sep 16, 2021 3:23 pm
How long will it take you to earn $2M with the FAANG company? How much more free time will you have? How much less will you hate trying a differnet job?
As I alluded to, it is unlikely that my decision will change at this point, I’ll just need to find the courage to say no one more time. I was just posting an update given all the users who spent time giving me some advice. :sharebeer
I'm looking forward for more drama when you try to deal with the stress of a FAANG job. Please do keep us informed.
-- | Few are those who see with their own eyes and feel with their own hearts - Einstein | *Everything I write here is an unreliable opinion*
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