Is this permanent package irrestible?

[utternutter]

£70k + 7k car allowance + up to 10% bonus + matched pension contribution up to 10% + assorted other stuff (life assurance etc.)

That's fantastic! All the best with that.

If I was on your daily rate, then I'd ignore everything I've said and take the permie role.

Well said and thanks

[b0redom]

I've had stock options before a few times. Sometimes they've been worth a bit, sometimes a lot, and sometimes (usually) feck all.

If you're being given options rather than actual stock in the company (and even sometimes then), you would probably do well to consider them next to worthless and if it does come off it's a nice surprise.

Same deal with bonuses. If it's a guarenteed bonus, then why isn't it part of your basic pay? What's the bonus linked to? Company performance? Your performance? Who decides on the performance?

Finally, you'll only get the relocation once, and I'd be surprised if it costs you less than 2k to actually move. Taking all the above into consideration is it still worth it?

[utternutter]

I've had stock options before a few times. Sometimes they've been worth a bit, sometimes a lot, and sometimes (usually) feck all.

True. The stock only vests after 4 - 5 years, which makes it less appealing despite the dividends that will be accumulated. It's much like delayed gratification, which is a huge part of the package as a whole. Excluding those makes it a lot less appealing, with a basic that is lower than my rate.

[TheFaQQer]

True. The stock only vests after 4 - 5 years, which makes it less appealing as no can tell what might happen in between. It's much like delayed gratification, which is a huge part of the package as a whole. Excluding those makes it a lot less appealing, with a basic that is lower than my rate.

Do you have to still be there in 4-5 years to get them? If so, then I wouldn't even consider them as part of the package.

[b0redom]

They only vest after 4 years? Every single time I've had them they vest over 3-4 years. Usually you get nothing for the first 12 months, then 12/36 or 12/48, then 1/36 or 1/48 per month after that.

If you don't get any at all for 4-5 years I'd pretty much write them off immediately, but then I've never stayed anywhere longer than 3 years (even as a permie).

[utternutter]

Yes, it's in parts - 1/3 at 2, 3 and 4 or 5 (I can't remember if it's 4 or 5) years.

So yes, you'll have to commit for quite a while unless you want to significantly reduce your package.

[yasockie]

An obvious question, things like bonus are I guess just added to your total PAYE that year, so a 10k gross bonus really is half of that in your pocket?
Is it the same for car allowance or is it somehow deductible?

[utternutter]

An obvious question, things like bonus are I guess just added to your total PAYE that year, so a 10k gross bonus really is half of that in your pocket?
Is it the same for car allowance or is it somehow deductible?

Yes, it's all added to the total so there are tax implications which are unfavourable compared to operating through a ltd. company.

Thanks, all! I guess it is looking less attractive from a financial perspective than it was initially. That helps put it in perspective.