In this episode of The Compensation Podcast, Lucas and Luna explore the increasing use of retention bonuses in today's job market. According to a 2026 WorldatWork survey, 36% of companies now offer retention bonuses to key employees. We break down what retention bonuses are, how they differ from signing and performance bonuses, typical amounts (10-30% of base salary), when they're used (mergers, restructuring, key employee retention), tax implications (ordinary income), and potential downsides like clawbacks. Plus, a real-world example of how one tech company used retention bonuses during a transition. Finally, we discuss how to evaluate a retention offer and whether it's really worth staying.