Bonus Dispute and Compensation Dispute

Many securities industry professionals receive bonuses in addition to their base salary. Bonuses, which are also referred to as incentive compensation or discretionary compensation, often constitute the majority of a broker’s earnings. They are normally paid out in the calendar year after the one in which they were earned, and can consist of stock components in addition to cash. Bonus and compensation disputes typically arise after an employee is terminated or laid off. Investment banks and brokerage firms will decline to pay any bonus owed or offer a drastically reduced compensation in a severance package. Because bonus compensation can be a lot higher than a broker’s base salary, withholding this money can be devastating to a terminated employee.