By Jon Howard
Sign-on bonuses continue to feature in lateral hiring.
They are not universal. They are not automatic. But for candidates in high-demand practice areas, with specialist expertise or competing offers, they remain firmly in play.
Current ranges typically sit between $25,000 and $100,000. Higher figures are generally reserved for senior laterals or hires tied to defined strategic objectives.
Timing remains a central factor. Many firms pay annual bonuses in February or March. Associates moving before payout risk forfeiting significant compensation. In response, firms are covering missed bonuses directly or structuring sign-ons to offset the loss. Some are aligning hiring timelines with bonus cycles to reduce friction.
The conversation has shifted from base salary to total package and timing.
Sign-ons sit alongside retention structures, particularly in transactional work, specialist litigation, regulatory and energy transition practices. Where sign-ons secure entry, retention bonuses protect continuity.
Performance-linked incentives are also more explicit. Firms are refining bonus thresholds and strengthening links between billing, origination and reward. Lockstep models are increasingly supplemented by merit-based components.
Three factors are driving this:
- Financial performance. Many firms closed 2025 strongly, creating flexibility in hiring budgets.
- Selectivity. High-quality candidates are running structured processes and comparing platforms.
- Targeted hiring. Firms are building specific capabilities rather than expanding broadly. Where a lateral supports revenue growth or succession planning, structured incentives follow.
Clawback and repayment rules are also being written more clearly and carefully, as regulators in some parts of the US pay closer attention.
Contact us
To discuss the legal recruitment market in more detail, please contact Jon Howard:
📧 jon.howard@wearebuchanan.com