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Is that a signing bonus or a agreement to get paid less in two years?
by willcipriano 5y ago
Is that a signing bonus or a agreement to get paid less in two years?
- dragonwriter 5y agoIs there a meaningful difference?
- willcipriano 5y agoTo me a signing bonus is a upfront payment for you to agree to join. Paying it over two years is just a regular bonus paid biweekly. Time value of money makes the lump sum a lot more valuable, especially in these inflationary times.
- dymk 5y agoSure, a single lump sum bonus might bump you in a higher tax bracket, whereas the bonus paid over 2 years may keep you in a lower bracket.
- deleted 5y ago[deleted]
- notreallyserio 5y agoThat's not really that big a deal. Sure, you might pay lower taxes if the bonus is split between two years, but the difference on tax would surely pale in comparison to typical gains in the stock market or other investment.
- thisguy47 5y agoIt is because they have a different vesting schedule from most companies. Instead of 25% of your stock annually with a 1 year cliff, they pay out 5%, 15%, 40%, 40%. So once your signing bonus is up, your shares ramp up.