Employee May Owe $4 Million After Accepting A Counteroffer!

Employee May Owe $4 Million After Backing Out of A Job Offer. An investment banker at Credit Suisse who backed out of a signed offer to join a competitor, Jeffries, finds himself with a $4 million bill for breach of contract. What does this mean for the job market in the future? And should you accept a counter job offer?

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[TheSiriusEnigma]

Here is why you should never accept a counter offer: they should have paid you this in the first place. Their counter offer is admitting that they were low balling you knowingly. As for the claw back… that only works if there is no trial period.

[joshuakaeble]

This video won't apply to of your subscribers.

[genx]

How did that dude not have a lawyer with him to review the docs. Dumb.

[withpikachu]

That's not a typical job. I applied once and thanks to them for being so frank with me. They are just looking for people with connections. Your worth is your clients.

[neaeanblue]

This reminds me of a company I was going to interview for that I saw their intro videos for and it stated they would charge you if you left the job without a notice. Didn't even seem legal but I did not go through with them. Screamed red flag.

[vidgame]

"moneypenny" what a fitting name

[notyou]

So the main argument here by Jefferies is that the employee played the same game that employers play, gaming competition in order to benefit themselves. What do you think wages are? They game potential employees, pitting them against each other, going with the most qualified for the least pay. But when an individual does that, they have an issue?

I get that the guy signed a "claw back" clause, but that's not my point. He simply did the same thing that the very people who employee him (and their competitors) do to him (and their other employees).

[timothygibney]

Folks reading this are miss the point! Non competes used to only apply for VPs and CEOs that now apply to everyone to lower wages. If this man loses all of us could be hit with clawbacks and damages if we job hop while we are still right to work making this a one way power trip

[jetsetter]

This is a tough one. It sounds like he was very clear about the terms and signed anyway. While $4 million sounds insane, he did violate the agreement and financially profited from using the competitor’s offer to obtain an increase at his current job. If he was very clear about the terms, he should pay. If he misunderstood the terms, he should pay a portion of the $4 million, a compromise payment.

In my opinion, he did this wrong. If he wanted to stay with Credit Suisse, he should’ve never signed the offer. He could’ve mentioned to CS that he received an offer from a competitor that was almost impossible to refuse in order to give them the opportunity to counter. Why sign on the dotted line on a such extreme terms when he didn’t really want to leave his current employer?

[gutsysn]

I think it's a stretch for companies to claim damages for this, especially of this magnitude, when a potential employee should have the ability to walk away if the offer is no longer good for them regardless of the circumstances that led to that decision. I'd be more sympathetic if the employee agreed to a 2 year term on those conditions and walked away 4 months into a new contract, but otherwise it's just setting a precedent for practices that feel predatory in nature and no one should personally be on the hook to pay for the employer's expense.

I know there's the argument that "he shouldn't have signed it" but I would argue that clause shouldn't exist to begin with.

[serpent]

This situation, by definition, isn't a "clawback". These people signing would've needed to receive an advance from the new employer for it to be a clawback. Like Elon had with Twitter, this is a walk-away/back-out penalty

[ringsaphire]

wtf? he's not a victim, he knew the risks and played roulette anyways out of greed.
win or lose, it's all on him.

[Websitedr]

Being totally honest I don't think I would want a salary like that. Way too many strings and expectations.

[johnmoore]

Financial sharks negotiating with other financial sharks and double crossing one another. Few subscribers will have sympathy for either party. It went to arbitration first, as well. His chances of winning in arbitration were pretty close to zero. Now it's in court. I doubt it'll affect the rest of us.

[masteryoda]

A banker called Moneypenny... thats so funny 😅

[ericeandco]

Kind is surprised these people weren’t locked into non competes.

[sawyer]

I'll take that to court. And I'd move out of country if I lost lmao.

Don't care if it's in the fine print, that's outrageous.

[stevepreskitt]

I'm not sure I'd call it a "clawback", since (if I'm understanding correctly) he hadn't yet started at Jefferies, and they hadn't paid him anything when he decided to return to Credit Suisse. It seems pretty dumb to sign a contract for a new job and try to use that against your current employer. The time to apply that leverage is after your attorney has looked it over, but *before* you sign anything - if Credit Suisse offered to bump his compensation in response, he could then have instigated a bidding war between the two companies and just gone with whoever's final offer was best. In any event, if the signed contract says he owes Jefferies $4M, then IMO he needs to suck it up and get his checkbook out.

[kailianglf]

wait, clawback, meaning that's not punitive 4M out of the blue; the candidate received 4M in the first place?

[kdavidsmith]

This could have long term implications down the line. I can imagine, especially with the end of non compete clauses being disputed in CA, that more companies are going to add this to their offer letters. I can see this making its way all the way down to the PT summer retail jobs.