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Retention Bonuses & Refresher RSUs

Retention Bonuses & Refresher RSUs

If you are a top performer in your team, you may be eligible to receive spot or retention bonuses. In this lesson, we discuss how to approach the topic of bonuses with your manager without feeling uncomfortable or awkward.

Retention bonuses are paid to existing employees deemed critical for business continuity. Employees of an acquired company may be granted retention bonuses by the acquiring company. Recently IPOInitial Public Offering-ed companies may also pay their indispensable employees a retention bonus to de-incentivize them from leaving.

Some companies allocate a budget for managers to issue spot bonuses to team-members for extraordinary performance or achieving crucial milestones. If the bonus amount is large, it usually comes with a vesting schedule, similar to a sign-on bonus.

The implicit prerequisite before one can ask for a raise, bonus, or additional RSUs is to be one of the high performers on the team. You may already have a rough idea of how you stack rank within your team. The more valuable you are for the team, the more leverage you have to ask for monetary benefits.

One easy litmus test is to consider how often your opinion is sought by your team members for day to day activities, new ...

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