What should I do?

http://www.analystforum.com/phorums/read.php?1,887217,887217#msg-887217 Referring to the link above,I would like to seek some constructive comments from AFers. Currently I am working as a Corporate Financier in a power generation company. I registered and sat for CFA Level 1 to leverage on my working experience as I come from an engineering background. Recently, I thought there is a ceiling or confinement of my work experience as most of the deals i am working on involves M&A only. Coming from the client side (internal CF) to be exact, most of my knowledge is gained explicitly from our financial advisors. Having mixed feelings on what I would achieve here, I furnished my resume and applied a few investment banks. Surprisingly, I was selected to join a local IB as an analyst in their apprentice program. The pay and benefits are better than what my current employer is offering. In addition, they are sponsoring for the CFA program as well. The downside, however, they wont bail me out on the bond I am currently serving my current employer. We’re looking at a sum of 60 - 70k. On one hand, I have a secure job with a bond of 4 years but little working experience to gain (an engineer doing internal corporate finance, you do the math). On the other hand, I can land myself in a local IB and build a strong foundation in investment banking, having good perks, expected worse working hours, sponsored professional certifications. I am in a quandary whether to pull the stunt off by resigning and paying the huge sum back to my current employer or should I stay. What would you have done If you were in my position?

If you could put your problem in two brief paragraphs you may find alot of help here.

You have to pay your employer money? I don’t get it, sounds like a scam!!

JOE2010, Appreciate your input coz you know my country well. maddane, They sponsored me on my undergrad studies. Thus, I am bonded for 5 years. It’s mutual and no scam here. You breach the agreement, you pay. SImple as that.

a) negotiate the sum down to a more favorable balance and b) negotiate a signing bonus with the new company. If you’re good at both then you can get the net amount cut in half or more and consider the balance to be the cost of experience.

Sound like a good opportunity . but sux if you gotta pay that bond back. But if you do break into IB and get far at the end of the day that 60K is gonna be minimal. Thats the risk you take i guess

Sounds to me like you had a deal with the company. They were there when you needed them, right? How about some loyalty to your sponsor? Go and ask if there is any position within the firm that may suit you better.

keelim - My advice is simply, don’t listen to Stiff1. Listen to Maddane and JTLD. Congrats and good luck.

How does this bond work?

LPoulin133 Wrote: ------------------------------------------------------- > keelim - My advice is simply, don’t listen to > Stiff1. > > Listen to Maddane and JTLD. > > Congrats and good luck. First time I think anyone has ever said to listen to my advice on AF. hahaha. Maybe I can be of greater use here then just creepily hititng onto our lovely female posters???

^ no chance…stick to what you know!

well buddy just do a simple NPV analysis. Assume the 60-70K as sunk cost.

Are there any polish girls on this forum?..

storko, The company pays for your undergrad study in return you will be bonded for 5 years. needhelp, The problem is I cant quantify the future prospect of landing a job in IB. What I do know is that I’ll be lurking in the dark if I continue this job as an unqualified internal corporate financier, equipped with an engineering background in this corporation. Therefore need some inputs from someone experience.

A lot of government sponsored students (Singapore) that study abroad pay off the bond after they land a high paying IB job. Simple math, 70k or take 4 more years of BS. Remember, ain’t no money that can buy back lost time, lost opportunity.

phBOOM, yeah. It boils down to time and money.

agree with phboom. anyway, is a bond of that amount even legal - i dont think a company could lock you into a financial committment of that amount in Aus but it might be different where you are based? id run it by an employment lawyer. alot of the time employment contracts arent worth the paper they are printed on, and employess can avoid the responsibilities of them with a bit of legal legwork. the downside of taking it to that level is that it will remain on your record that you took an employer to court. at best, you can argue that you cant afford to repay the 60-70k now, and then pay it off over a few years. personally id take the new role, if it offers the progression and benefits you are looking for.

djjk1, Yup, it is completely legal here in my country. I’ve served the company 1 year upon graduation. 60-70k I am looking at, is the amount they sponsored me after prorating the total amount with the required tenure (5 years) I need to honor. In addition, I did not take into account accrued interest. I presume the actual amount without prorate and with accrued interest, amount could balloon to 120k. This is subject to the management discretion. (Precedence has set it, that it was always prorated and with no accrued interest after a couple of appeal letters being sent out) I agree there is ethical issue as there is this obligation I have to fulfill. But the lack of confidence due to weak foundation, no proper training was provided, coupled with different background has consolidate my reasoning to leave. The arguement some of my friends put were “Why not honor the bond, and you could earn a decent salary without much stress each month?” , “I am sure some employer will acknowledge your experience after 5 years.” , “It’s dumb to pay that amount as you can buy a good car.” . Most of the comments were rather discouraging and against my passion. I am apprehensive I would be too driven by passion that my plans backfired. A road less travelled is hard to justify as it involves obscure future. crap…life sux when you’re poor.

I can see the initial offer being very inviting… Not the greatest of situations, but if you didnt do your undergrad you would not be in it. Whatever you decide, you are in a better position than if you didn’t take the sponsor. Flip a coin, have a beer, and enjoy life.

Perhaps somebody as undecisive as you should stay away from IB altogether! I mean, what do you expect to do in IB - not taking the risk of making decisions and still making tons of money? Give me a break. If you need to consult all your friends, brothers and sisters and then the AF to make a relatively smallish decision like this, then you are best suited for a civil servant job. Think about it.