Careers
Signing Bonus
A signing bonus is a one-time cash payment made to a new employee, typically on or shortly after their start date, most often used to offset unvested equity or an annual bonus forfeited by leaving a previous employer, or simply to close the gap in a competitive offer negotiation.
Signing bonuses commonly carry a clawback clause requiring repayment (in full or prorated) if the employee leaves within a specified period, usually twelve to twenty-four months — a detail candidates frequently overlook until they're trying to leave early.
Because a signing bonus is one-time, it inflates first-year total compensation without affecting the ongoing base salary used for future raises, bonus targets and 401(k) matching calculations in most companies — worth factoring in when comparing offers beyond year one.