Signing Bonus Questions

Question

I have two questions:

1. Are signing bonuses usually just offered to freshly minted MBA's, or can I expect a signing bonus every time I change jobs once I have my MBA?

2. Is there usually a condition attached with signing bonuses that you have to stay with the company for a certain amount of time (or else owe them the bonus if you leave early?)

dukes · Answer

There is no consistent standard for either of these questions, but there are mid-career jobs that provide signing bonuses and signing bonuses often do require you to stay on for a certain amount of time. I'm not sure if this is what you're getting at, but I don't think you'll find it easy, profitable, or good for your career to increase your short-term earnings by job-hopping to collect a bunch of signing bonuses.

amorica · Answer

When I got my signing bonus for my current job, it was contingent upon me staying for at least a year. If I left before, I would have to repay my employer..

johnnyx9 · Answer

Dukes - No, I wasn't thinking of jumping around to collect signing bonuses, but I was thinking if I signed on with a consulting company and was totally burnt out after a year or two and decided it wasn't for me if I'd have to give the money back.

But I was also wondering if signing bonuses were a premium that companies pay to snatch up MBA's, or if it's a pretty standard job thing, like if I work in consulting for a few years, then decide to move to industry finance, it would be nice if there were a signing bonus there.

lhotseface · Answer

Signing bonus and stock options are pretty standard in most industries.

kidderek · Answer

Yes. I've read students take their signing bonuses and go on group vacations just after graduation and before work starts. It sounds like a great experience.

fluffydot · Answer

One interesting thing that I found out while at an admit weekend was that many firms will pay out the signing bonus at the end of your internship to entice you to commit to them before going back to school.

All along, I was thinking they would wait til you graduate to finalize things, but MAN! $30 - $50k sounds like an awesome way to finish off the summer!

:lol:

rhyme · Answer

30 to 50 ???

More like 10 to 20.

mattyb · Answer

I haven't seen this mentioned yet, but I've heard that sometimes when you join a company in the middle of a given year and you're not eligible for a year end bonus the company will offer the sign on to both motivate you to make the jump and as sort of a pre-paid year end bonus.

rhyme · Answer

I've seen it happen more as a bonus buyout - to convince you to move - especially if bonuses are big part of comp. I know someone in IB who had a 200K bonus last year, and another firm is trying to recruit them now. As part of the recruiting package, they are offering a $200K sign on as a "bonus buyout" - on top of the actual annual bonus.

mattyb · Answer

That too...which would be pretty darn nice. This is fairly common with financial planners and credit relationship managers (commercial loan officers) as they are expected to bring a lot of business with them when they jump ship to another company.

flapjack · Answer

Rhyme, how senior is that guy? That's an awful lot of money for a sign-on bonus.

cbreeze · Answer

Signing bonuses in most cases for new MBAs ( in finance especially)are really payments for moving costs. Believe me, the $10-20K really don't go a long way especially after taxes, payments for moving, securing a new apartment , some furnishings and perhaps a new wardrobe.

All the people hired by IBs straight from undergrads were not given any relocation perks, just signing bonuses.

Of course, signing bonuses associated with higher level positions (after years of experience) are considered extras, with many other perks thrown in as part of the deal.

I have heard that Fortune 500 companies may throw in relocation costs but with a lower signing bonus.

rhyme · Answer

She's an established associate with about 7 years of IB experience.

rhyme · Answer

I've negotiated relo costs before more than once. In each case I didn't end up moving, but with one firm in California, I convinced them to dish out $40,000 in relocation - cover sale of my home, temporary housing, etc. Just negotiate and negotiate well.

cbreeze · Answer

rhyme, I think in your case, it is what I call higher level positions.....you are in the driver's seat in the negotiation. You couldn't have gotten that in your first job out of school.
My friends who went into IB right after college weren't given relo costs.
The ones who received moving costs, are the ones who went into corporate finance, eg. GE, Ford,Northrup, Cisco.
I am referring to new MBA's ,and those in IB and IM who in most cases are given the standard package. Signing bonuses only.

rhyme · Answer

True... if you just go the standard route there isnt much wiggle room.

Signing Bonus Questions

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