Does Citadel enforces non compete if you are moving to a FAANG employer? I know they are not “competing” per se, but has anyone got experience of doing that. YoE 13 TC: 380 K
Citadel recruiters have told me in the past that there would “likely” be little or no garden leave if going to FAANG.
Recruiters have a half life of about 6 months at Citadel so not sure if their word is worth a dime!
I left Citadel over five years ago, so my knowledge is dated; but I would be amazed that they'd enforce the non-compete for going to a FANG (unless you're a senior manager). In fact, back when I was there, everyone specifically used Google as the example company that they would go to if they left Citadel and had to wait out a non-compete. I knew at least five people who went directly to Facebook or Google without a problem. Again, that was years ago; but I'm amazed if it's changed. For what it's worth -- when I left Citadel (to go to another hedge fund although not quite in the same space) they waived the non-compete and I was allowed to go immediately. (Although in my case, they were shutting down my desk, so I wasn't exactly laid off, but departing wasn't entirely my choice either).
Agreed with this, I am not a lawyer but would be surprised if this clause applies to a FAANG firm.
It should be FAAMG. Facebook, Apple, Amazon, Microsoft, Google. Netflix is not that relevant.
Generally no, it won’t stop you from a FANG, but there is NOT a one size fits all non compete (NC) and the most variability happens with QR roles, some of which may be custom legal documentation involving significant legal representation from both parties. However unless you are a PHD with a proven track record in quant finance, yours will be much more vanilla. For most at Citadel, there are 2 flavors of non-competes. The first will cap your payments based on your total income. Let’s say you get a non compete of 360k for 12 months. This means that every month you get 1/12th of the payment (30k) if you don’t work. If you have an income cap and are making 240K at a FANG, citadel will only pay you the difference ($10K). However if you don’t have the income cap, you will make 600k for that one year (360 from Citadel and 240 from FANG). The length of the NC enforcement varies across orgs and seniority AND you generally don’t know the length of enforcement until your last day. This means that even though you have a 12 month NC, they won’t necessarily enforce it. The longer you have been here , the more likely they will. However the payment will not change last minute if they choose to enforce. The total NC payment varies and is normally a percentage of TC or just base. Review the terms to understand which of these you are signing. It has pros and cons, but watching my friends in their 20s and 30s getting paid bank to travel the world is pretty crazy. I am used to it at this point but still love listening to them explain it to new people while on garden leave who are unfamiliar with the concept and watching their reactions.
Do you know how the income cap worded? I don't see anything in my signing docs that would indicate this
If you don’t see it then it does not apply. This is generally only for people aligned to QR (GQS, EQR, CS-QR).
Probably not, it is completely different businesses. I wouldnt see how they could compete
Unlikely they enforce noncompete. Would be difficult to enforce in practice as well
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Non competes, at a minimum, try to keep you from going to a competitor. In most cases, it’s very hard to win a legal battle for the employer. Also, in what world does FAANG compete with Citadel. You’re fine...
I think OP is referring to the garden leave lots of top quant firms enforce on their employees when they leave
Thanks Terracota, indeed that was what I was indicating