This video explains the role of signing bonuses in tech compensation, particularly how they’re used by companies to stay competitive and how candidates should evaluate them carefully when reviewing offers.
- Signing bonuses are one-time cash payments intended to sweeten a job offer and help a company stand out among competing opportunities.
- Unlike base salary and equity, signing bonuses are not banded, meaning they can be more flexible and generous—sometimes reaching up to $175K–$200K for top-tier roles at big tech firms.
- Because signing bonuses are tied to retention, they’re typically prorated over time. If the full amount is paid upfront and the employee leaves early, a portion must usually be repaid.
- Most signing bonuses are structured around a one-year commitment, but some companies now split them over two years, spreading risk and encouraging longer retention.
- It's important to read the fine print, especially around repayment terms and payout schedules, since these details can affect real take-home compensation and decision-making.