When does outside compensation need written consent?
A client wants to pay an analyst a personal bonus if performance is strong. Is disclosure enough, or does the analyst need written approval?
If the outside compensation could create a conflict with the employer's interest, the analyst should obtain written consent from all parties involved before accepting it. A personal performance bonus from a client is a classic additional-compensation issue because it may affect the analyst's incentives and work priorities.
Disclosure only to the client is not enough. The employer must be able to evaluate the arrangement before the analyst accepts the benefit.
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