Guaranteed performance bonus written into my offer letter.

Anonymous

April 6,2023 at 6:55AM UTC

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Guaranteed performance bonus written into my offer letter. Fast forward, acquisition of the company is finalized and the new parent company says we will not be getting performance bonuses this year. Do I have any ground to stand on in asking about the guaranteed language in my offer letter?

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AnonymousApril 6,2023 at 12:01PM UTC
TBH I would have a professional look at your offer letter. It's a tough ask as that company is no longer. And to be clear, your contract altogether may be revisited under the new acquisition so I would caution soft inquiries to find out.
AnonymousApril 7,2023 at 4:17PM UTC
No, the offer letter is from the prior company. Any negotiation on the new company’s acquisition, I believe, voids your offer letter statement.
AnonymousApril 7,2023 at 4:42PM UTC
Highly unlikely that you can enforce the term of an agreement with the new parent company. The agreement was with your former company. You have no contractual relationship with the new company. They not only can disregard any prior obligations of the former company, they can also let go of employees of said former company.
AnonymousApril 7,2023 at 4:45PM UTC
Probably not. The terms of employment being absorbed into the merged company are part of the acquisition, and some of those provisions may vary by state. Typically, when a company acquires another, all personnel in the acquired company can be laid off when the acquisition closes. This normally doesn't happen because intellectual capital is usually a significant part of what the acquiring company desires. You may want to check an outside source (perhaps an employment attorney) familiar with your state's laws.
AnonymousApril 7,2023 at 5:23PM UTC
Thank you, all! I didn't think I had a leg to stand on, but I wanted to ask for an outside opinion.
AnonymousApril 7,2023 at 5:35PM UTC
I would suggest you find a local employment attorney to review this document for you and generally the answer is no. They will acquire the resources (people) and the business (financial) and then can change almost anything that want under new ownership. Unless you are protected -IE: board level or exec level there is not likely a clause in your offer letter that states change of ownership directives. Wish it were a different response but the likelihood is you won't get that bonus. I would stay the course, wait until after the acquisition, see if there do anything different in their wording. They might make you sign new documents. When they have an employee forum for the changes it might be something to bring up in that meeting or in private with your HR business partner. Then you can decide if you choose to stick it out or look for another place to work. Generally after a purchase there are redundancies between the companies and if there is duplication they package out the duplicates. That could happen and if so then you might be one to get something as they remove you from the team. If you were counting on that bonus because of some performance that was exemplary they might make an exception for you to retain you. Definitely get your documentation in order, you might have to fight that out a bit but it could be worth it if you want to stay.
Joan Williams, Senior Talent Acquisition SpecialistApril 8,2023 at 3:02AM UTC
I'm surprised to see this listed as a "guaranteed performance bonus". Typically, performance bonuses are based on performance and therefore not guaranteed.
Your offer letter is from your old company and I don't see where the new company is under any obligation to stand by the terms if they're not so inclined.
Joanna PoeApril 9,2023 at 2:07AM UTC
In a reorg or an acquisition, anything goes. The only person I ever knew who negotiated to build one of these into his offer letter was the first person to be laid off when new owners took over. I mean, you do you, but be prepared to get the boot if you press your luck, assuming it's not a union shop.