Reimburse Relo if my Comp changed?

[Midwest Manager]

What is the name of your state?What is the name of your state? Illinois

I joined a company 11 months ago and signed an agreement that if I voluntarily resigned within 24 months I would reimburse the company for my relocation expenses and my sign on bonus. The agreement stated that if I resigned within 12 months I pay back 100%, between months 12-24 I owe 50%.

Since joining the company we merged with a another company and the new company has changed my comp. Specifically, I lost an annual stock option grant (non-qualified options), had my potenital (performance based) bonus range reduced, and other benefits were reduced as well such as the value of 401K matches, medical benefits co-payments, etc. Further, post-merger, my responsibilities and workload have increased by about 50% with no increased comp.

My combined relo and sign on bonus exposure is substantial, likely in the $100-125K range.

My question is: "since I originally signed the relo bonus repayment agreement based upon the expectation to get stock options (and the other cut benefits) am I now free of my obligation to repay the 50% rate if I resign to join a different company?"

I have an offer pending from another company and the liability of being held accountable to repay is a substantial factor in whether I can make the new offer worth taking.

Thank you.

 

[JETX]

My question is: "since I originally signed the relo bonus repayment agreement based upon the expectation to get stock options (and the other cut benefits) am I now free of my obligation to repay the 50% rate if I resign to join a different company?"

Simple answer. If your WRITTEN committment is contingent on your receiving those benefits AND if a court finds the agreement was breached by them, you MIGHT be released.
Absent a court finding to that fact, you leave at your own risk.

Since you are talking in excess of $100k potential liability, don't you think it would be reasonable to spend $500 or so for a local attorney to review your documents and COMPLETE situation before you make what is likely a huge mistake???

 

[Midwest Manager]

Thanks Jet. Given the money involved, I agree, it is worth paying an attorney to reiew. My liabilty does drop by 50% soon and that is when I would make my move.

I guess what really bothers me (and will be a lesson for the future) is that the agreement to repay relo/sign on seems to stand on its own. I have no separate agreement that ties my acceptnce of the relo repay to a substantive change in my comp and responsibilities.

Legally, your feedback would suggest that I am on very shaky ground. Morally, it seems unfair as my comp level was a key factor in my decision to accept and sign the relo agreement.

If I were judge and jury on "what is the right thing to do" I would, at least partially free myself from obligation. But I realize the written law more often than not stands on its own.