BeforeJD Guides

Before you sign: the bonus terms

The clause that lets them change your bonus terms at any time

• Find the bonus clause. It may sit under Bonus, Incentive Compensation, or Compensation.
• Check who decides the amount, and whether the word "discretion" or "sole discretion" appears.
• Check whether the terms can change at any time, and whether you get notice first.
• Check when the bonus is earned: when the targets are met, or only when it is paid. Once earned, state wage law may protect it.
• Check whether you must still be employed on the last day of the year or on the payment date.
• Ask for written notice in advance, and for a bonus earned once its targets are met.

The clause in this guide: Offer of Employment, Exhibit 10.28, CIK 1733294, Form 10-K, filed with the SEC on March 13, 2025. https://www.sec.gov/Archives/edgar/data/1733294/000155837025002907/gbio-20241231xex10d28.htm

BeforeJD is not a law firm. This is informational only, not legal advice.