In order to encourage employees to stay in the organization, there are often clauses in the contract according to which the employee, when he terminates before a certain period, must return the signing bonus. In the case of sports contracts, the full amount of signing bonuses is not always paid immediately, but spread over time. In such cases, the main difference between a signing bonus and a base salary is that the former is “guaranteed” money, which means that the team is required to pay the bonus on maturity, even if it reduces the player, unless the player resigns or the contract is terminated due to a significant infringement by the player. A signing bonus or sign-up bonus is a sum of money paid by a company to a new employee to encourage people to join that company. [1] They are often given to make a compensation package more attractive to the employee (e.g.B. if the annual salary is lower than he or she wants). It also reduces the risk to the business, since it is a one-time payment. For example, if the employee does not meet expectations, the company has not committed to increasing their salary. Signing bonuses are often used in professional sports and to recruit graduates for their first jobs. Through March 2019, Aaron Rodgers had received the highest signing bonus in National Football League history, with $US 57.5 million. [2] As of June 2020, Spencer Torkelson had received the largest signing bonus in a draft in Major League Baseball history with $US 8.4 million.

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