Question:
Jennifer,
I work for a PE backed medical practice. I think my employer is about to sell. How can I get a sale bonus as an employee?
Thanks,
Dr. K
Answer:
Depending on what you’ve signed, you may or may not have any leverage. Your current employment agreement may have an assignment clause, where if there is a sale and a transfer of your employment agreement is required. You may have a contractual provision that your consent is required for your contract to transfer. Now, if the employer does not have the ability to transfer your employment agreement without your consent, and a transfer is required for your employment to transfer, now you have potential leverage. In this situation, you can absolutely negotiate your way into a bonus, which typically is crafted as a retention bonus, and only paid after a certain period of employment term by you, post sale. At the end of the day, it’s all going to come down to your employment agreement and leverage. For my best answer, I will have to take a look at your current employment agreement and see where you stand.
It is worth noting that in many PE back entities, the medical practice itself is not what is being sold, but actually the management company and the employment agreements are not actually being transferred. So, the hypothetical we are posturing is absolutely situationally dependent.
Have a question for Jennifer? Email is best. You can reach her at Jennifer@Kirschenbaumesq.com.
Jennifer,
I work for a PE backed medical practice. I think my employer is about to sell. How can I get a sale bonus as an employee?
Thanks,
Dr. K
Answer:
Depending on what you’ve signed, you may or may not have any leverage. Your current employment agreement may have an assignment clause, where if there is a sale and a transfer of your employment agreement is required. You may have a contractual provision that your consent is required for your contract to transfer. Now, if the employer does not have the ability to transfer your employment agreement without your consent, and a transfer is required for your employment to transfer, now you have potential leverage. In this situation, you can absolutely negotiate your way into a bonus, which typically is crafted as a retention bonus, and only paid after a certain period of employment term by you, post sale. At the end of the day, it’s all going to come down to your employment agreement and leverage. For my best answer, I will have to take a look at your current employment agreement and see where you stand.
It is worth noting that in many PE back entities, the medical practice itself is not what is being sold, but actually the management company and the employment agreements are not actually being transferred. So, the hypothetical we are posturing is absolutely situationally dependent.
Have a question for Jennifer? Email is best. You can reach her at Jennifer@Kirschenbaumesq.com.
