From: ahk@chinet.com

Peter Schleifer  wrote:
>"Adam H. Kerman"  wrote:
>>Peter Schleifer  wrote:
>>>"Adam H. Kerman"  wrote:
>>>>Stephen Sprunk  wrote:
>>>>>On 22-Aug-14 15:45, Adam H. Kerman wrote:

>>>>>>A hiring bonus is to compensate for work about to be performed

>>>>>No,

>>>>Yes.

>>>No.

>>>A hiring bonus is offered because it is needed to hire the desired
>>>person.  In my own experience part of that is the need to compensate
>>>for the loss of the expected year-end bonus at the prior job if the
>>>new hire is being enticed to leave the old job before collecting that
>>>bonus.

>>You're being ridiculous. The new employer pays a hiring bonus anticipating
>>getting work from the new employee. There's no other way to look at it.
>>That's why it's ordinary compensation.

>It's taxable as ordinary income,

I'm not concerned about tax treatment; this was about bankruptcy.

>but depending on the terms of the offer, it could be paid before much
>work has been done and there might not be any obligation to return it
>if the new hire resigns after a month.

Sorry. It's impossible to believe any employer would pay a hiring bonus
without concern for getting actual work performed. If the employee (we're
talking about "the talent" or upper-level management) resigns immediately,
then it would be just like a golden parachute payment.

I suppose employers have been ripped off under such a scenario, but
there's no need to discuss it as if it's common.

>>Golden parachute: No more work will be performed.

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