is there a formula in order to balance a contract offer?  My offer is deemed unbalanced because I front loaded it.  Can I also use bonus to save off salaries for subsequent years?

say a FA wants 3 years for a total of $15 mil.  What is the best way of offering him a front loaded contract where the salaries in year 2 and 3 are minimized?

Bonuses are a good way.

The amount of balance required is in the Help.... they are, in general:

For an N-year contract, no more than 1/(N-1) of the contract can be in any one year.

EX: A 3 year contract, no more than 50% of the total contract value in any one year.
       A 4 year contract, no more than 33% of the total contract value in any one year.
       A 5 year contract, no more than 25% of the total contract value in any one year.

Posted by iain on 10/7/2010 1:19:00 PM (view original):
Bonuses are a good way.

The amount of balance required is in the Help.... they are, in general:

For an N-year contract, no more than 1/(N-1) of the contract can be in any one year.

EX: A 3 year contract, no more than 50% of the total contract value in any one year.
       A 4 year contract, no more than 33% of the total contract value in any one year.
       A 5 year contract, no more than 25% of the total contract value in any one year.

interesting, I followed that formula and my offer was deemed unevenly distributed.  the FA wants 3 yrs, $15mil.  I offered $7mil, $5mil, $3mil and it was not balanced.

never mind, it's 40%.  Thanks.