I once took a smaller salary in exchange for a big signing bonus, and it made the first year easier — but later I wished I’d gone for the base pay. What’s your take on signing bonuses vs. higher salary?

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Higher salary always, reasons:
1. Signing bonus taxed at a higher rate.
2. Your bonus based off your base pay
3. Your benefits such as retirement, company self insurance etc based off based pay

Do the math, with a lower base pay you lose in every equation!

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Great points!! Hadn’t thought of the tax implications s

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I’ve been screwed over with sign on bonuses so I would always say go for the higher salary. Plus if you think about it, because a sign on bonus is just a one time payment, it depreciates over time. You’re usually better off getting the higher base salary since that salary stays consistent for the entire time you’re working there.

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Makes a lot of sense. Thanks!

Always prioritize salary since it will compound each year you get a raise where a bonus is a one time thing

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100% agree, thank you!

I basically lateraled to go to C1, but the sign on bonus made it worth the switch at the time, or so I thought. This is the most stressful and toxic place I’ve ever worked! I did survive my first year (which is the requirement to not have to pay the sign on back) but I’m looking to exit to preserve my mental health and take back my life again!

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Yikes. So sorry about the toxicity - those are great points

I’ve never had an opportunity that offered a sign on bonus but I do get annual bonuses that aren’t always guaranteed. Personally, I prefer the higher base pay because I need that money throughout the year. If they can’t guarantee it and I’m counting it, it makes budgeting difficult. Some people just think of it as icing on the cake but my finances require it!

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Agree!! Very true

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I negotiated the sign-on bonus into my salary. I was firm on what I wanted and the higher salary was more important than a big sign-on bonus. It worked out well in my favor imo.

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Love that approach!

Regretted taking the sign on bonus because I took a huge pay cut and believe it when they said they couldn’t offer me the same salary as my previous employer due to internal equity but offered a higher base salary to another lateral.

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I was young enough to believe it 🤣

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Yeah, I definitely made that mistake as well. Now I'm all about the base pay. A big chunk of cash at the beginning is nice, but I always regret it later.

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Agree! All about base pay too now

When Trump gave away billions to billionaires during his first term. The windfall was so massive ,workers rightfully demanded a bite. Many a corporation's C-suite acted like they were the incarnation of the second coming by handing out $1000 bonuses to the unwashed masses. What they did not do is grant actual raises. This is because they understand money in a way the rank & file do not understand it. Money is not a means of purchasing the necessities needed to survive for a billionaire. Money is a means of holding leverage over people who need money survive to survive. If you're not negotiating COL & inflation raises every six months, guess what ? You are literally being paid less money today than the day you started working for them in terms of real dollars. And that's where American workers fail to advocate for themselves. The employer compensates by raising prices but, their income increases because they're paying you less. You don't see less because you're looking at the number on your paycheck & it remains the same. Hell, they could give you a 5% raise & you would still be making less in today's economy. When it comes to bonuses or salary increases , always make the reasonable choice : BOTH. Sign-on bonuses are a green light to go for the throat on salary and establish that COL & inflation raises are a completely different propositions from performance raises.

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I always try to go for a higher base salary. At the end of the day bonuses aren't guaranteed. I would much rather take a higher base than any sort of sign on bonus.

I think you should do the math and see if you can get both. Any offer should be analyzed on base pay, signing bonus, expected bonus, 401k match, cost of health insurance, other perks like car allowance/gas card. Everything adds up!

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