Signing Bonus

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Dictionary Says

Definition of 'Signing Bonus'

A financial award, often issued in one or two lump-sum payments, offered by a business to a prospective employee as an incentive to join the company. A signing bonus may consist of cash and/or stock options. Businesses offer signing bonuses to highly qualified job candidates to differentiate themselves from other businesses where an individual might consider accepting a position. Typically only salaried jobs pay signing bonuses.
Investopedia Says

Investopedia explains 'Signing Bonus'

Signing bonuses are more common in certain industries and for certain positions. If the recipient of a signing bonus quits within a short time after accepting the position, he will probably have to return all or a pro-rated portion of the bonus.

 

Signing bonuses, like other types of bonuses, often appear to be a major windfall, but because the money is taxed at the recipient’s marginal tax rate, much of the bonus will end up going to the employee’s federal and state government. An individual who receives a $10,000 signing bonus and is in the 28% federal tax bracket will lose $2,800 of the bonus to taxes, leaving only $7,200. In most states, state income tax would further erode the value of the $10,000 bonus.
Search results for

'Signing Bonus'

  • GM's New Deal Keeps It In The Auto Game

    http://stocks.investopedia.com/stock-analysis/2011/GMs-New-Deal-Keeps-It-In-The-Auto-Game-GM-HMC-TM-NSANY-VLKAY0922.aspx
    ... roughly $16-19 an hour. The signing bonus of $5,000 per worker will cost
    around GM $242.5 million. (For the importance of minimum ...

  • 3 Reasons Why GM Is Better Than Ford

    http://stocks.investopedia.com/stock-analysis/2011/3-Reasons-GM-Is-Better-Than-Ford-GM-F-AAPL-AMZN-BA0516.aspx
    ... Mulally is simply benefiting from an excessive signing bonus provided by Ford's
    board back in 2006, when the former Boeing (NYSE:BA) executive received $28 ...

  • 4 Ways To Get The Most From Your Credit Cards This Cyber Monday ...

    http://financialedge.investopedia.com/financial-edge/1111/4-Ways-To-Get-The-Most-From-Your-Credit-Cards-This-Cyber-Monday.aspx
    ... If you're just now signing up, wait two business days before making any purchases
    that the bonus would apply to, or else you might not get the extra 4%. (For ...

  • Best Loyalty Programs For 2011 - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/Aug-10-Best-Loyalty-Programs-for-2011.aspx
    ... New members can earn a $10 gift card bonus for Barnes and Noble, Target, Home Depot
    or Magazines.com upon signing up and making a purchase of $25 or more at ...

  • Globetrotting On A Budget

    http://www.investopedia.com/articles/pf/08/globetrotting-on-a-budget.asp
    ... You can get copious amounts of bonus miles for signing up with an airline's credit
    card (but watch out for annual fees, and allow yourself at least two to ...

  • 5 Tips For First-Time Renters - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0910/5-Tips-For-First-Time-Renters.aspx
    ... sure you'll be able to fulfill the time frame of your lease before signing it. ... as
    they are basically a way for landlords to give themselves a bonus for finding ...

  • Easy And Practical Ways To Save For A Vacation - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/Easiest-Ways-To-Save-For-Vacation.aspx
    ... for a credit card that comes with a spiffy account opening bonus and ongoing ... As long
    as Southwest flies to your vacation destination, signing up for this ...

  • Save On Planes, Trains And Automobiles

    http://www.investopedia.com/articles/pf/08/planes-trains-automobiles.asp
    ... Sometimes you can get additional bonus miles by adding a second cardholder to ... frequent
    flyer section) and through special promotions such as signing up for the ...

  • 6 Major Credit Card Mistakes

    http://www.investopedia.com/articles/pf/07/credit-card-donts.asp
    ... exceeds the 2% bonus that you received, it may not be worthwhile to incur the interest
    charges for such a small reward. You should also avoid signing up for ...

  • The Small Business Jobs Act: Make It Work For You

    http://www.investopedia.com/articles/economics/11/small-business-jobs-act.asp
    ... This strategy was substantiated by the signing of the Small Business Jobs Act of ...
    The Act extends 50% bonus depreciation under Section 168(k) by one year for ...

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