Sign-on bonuses are taking a backseat in corporate development offers. Here’s why

by Diane DeRosa-Fedor, Charles Aris, US member of InterSearch Woldwide

The Charles Aris team has closed 90 corporate development searches in the last 18 months, with only 24 offering a sign-on bonus. This number is low compared to other functional areas we recruit for. Here’s why:

• We continue to see sign-on bonuses “back loaded” into equity packages. Corporate development candidates are comfortable “closing over it” and not sweating a five or six figure walkaway for a seven figure future equity event.
• In many cases, the continued increase in market compensation has limited the need for a sign-on bonus as candidates opt for more cash over a one-time payment.
• Corporate development candidates understand that this is the “cost of doing business.” As deal professionals, they appreciate that inevitably there’s always a give and take.

One might imagine that given the skill set of negotiation for corporate development candidates the percentage of sign-on bonuses would be higher, but the data is telling a different story.