Sign-On Bonus
What is a Sign-On Bonus? How It Works and When to Expect One
A sign-on bonus is a one-time payment to a new hire as an incentive to join. It's typically paid within 30-90 days and almost always has a clawback requiring repayment if you leave within 12-24 months.
Companies offer sign-on bonuses to bridge salary gaps, compensate for forfeited equity at the previous employer, sweeten competitive offers, or offset relocation costs. Amounts range from $5K-$20K for mid-level to $50K-$200K+ for senior roles.
Important: a sign-on bonus is a one-time event. It doesn't repeat. If the base and variable pay don't work without it, the package may not be sustainable long term.