What Is A Typical Retention Bonus Agreement

In the aggregate method, your bonus is combined with your base salary and taxes are withheld based on the sum of the two payments. If your employer uses this method, your taxes will likely be higher than the flat rate of 25%. Having made significant progress towards the goals we have outlined, I think it would be fair for (X Company) to pay the amount of the retention premium on a pro rata basis instead of severance pay when I leave. Please let me know what you think. If you agree to stay in exchange for a retention bonus for a certain period of time, your employer will ask you to sign a contract that agrees to the terms. Below is an example of a retention bonus (referred to here as the ”stay bonus”) from the United States…