Retention Salary for operators

searcher profile

May 10, 2025

by a searcher from University of Texas at Austin in Austin, TX, USA

Looking for insights on what I should offer as a retention bonus for a key person that leads the day to day of the business I am acquiring. She asked the seller if we are planning on offering something. She makes $105k/yr.
0
5
105
Replies
5
commentor profile
Reply by an intermediary
in Austin, TX, USA
Exactly $0. She wants a bonus for staying? That sounds like one of the typical post acquisition extortion attempts employees (we need a higher salary to stay), suppliers (we need to raise prices to stay) and customers (you need to lower prices or we won't stay) make . Blunt approach: I would be recruiting in the background before close, then if she leaves post close, you have someone lined up already. Not blunt approach: offer a bonus based on transition performance tied to KPI's.
commentor profile
Reply by an investor
from University of Puget Sound in Seattle, WA, USA
We had an accounting staff do this with a bolt-on. The sellers gave her a 30% raise. She was key in our transition, but ended up leaving about a year post-close and wasn’t worth the extra 30% after about the 6 month period. I’d tie it to what you want to get out of her and prepare for her not to be a long term employee.
commentor profile
+3 more replies.
Join the discussion