Salary FYI

Signing Bonus

Salary

A one-time lump-sum payment offered to a new hire as an incentive to accept a job offer, often used to compensate for forfeited benefits at a previous employer.

## Signing Bonus

A signing bonus (also called a sign-on bonus) is a one-time cash payment made when an employee starts a new job. It typically serves to bridge the gap between the candidate's expectations and the offer, or to compensate for equity or bonuses they forfeit by leaving their current employer.

### Common Ranges

| Industry | Typical Range |
|----------|---------------|
| Big Tech (FAANG) | $20,000–$100,000+ |
| Investment Banking | $10,000–$50,000 |
| Consulting (MBB) | $25,000–$50,000 |
| Healthcare | $5,000–$30,000 |
| General corporate | $2,000–$15,000 |

### Clawback Provisions

Most signing bonuses include a clawback clause requiring repayment (prorated) if the employee leaves within 1–2 years. For example, leaving after 6 months of a 1-year clawback means repaying 50%.

### Tax Treatment

Signing bonuses are taxed as supplemental wages in the US (22% federal flat rate for withholding). The actual tax depends on the employee's total income and bracket.