A more practical way of calculating total comp

Cisco Jjjjjjjjja
May 20, 2018 14 Comments

Doesn't it make sense to have the total comp to be ...
Base + rsu/4 + sign-on + yearly target bonus + 401k match + espp discount percentage + hsa contribution from employeer.

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TOP 14 Comments
  • Google Facebook
    No.
    Sign on is a one-time extra thing to cover job switching hassle. 401k matching must be standard and if some employer doesn’t provide one it sucks big time automatically. ESPP is pretty rare. HSA contribution is optional: not everyone picks a high deductible plan.
    May 20, 2018 4
    • Amazon / Eng
      Ryuwusbfua

      Amazon Eng

      PRE
      IBM, Cisco
      Ryuwusbfuamore
      I say include signing because otherwise I’m only making $110k total staring at Amazon
      May 20, 2018
    • Splunk Ibrahimlod
      😂
      May 20, 2018
    • Amazon / Eng RCMMT
      For amazon, you need to calculate it year by year since their comp structure is abnormal.
      May 20, 2018
    • Microsoft JDwb49
      Just calculate what you're going to get in 4 years and divide by 4.

      Base + RSUs/4 + sign-on/4
      May 21, 2018
  • Netflix YOLO 🤟🏻
    Don’t sweat the small stuff
    May 20, 2018 2
    • Verb Surgical / Eng Bot🤖🤜🤛
      And it’s All small stuff
      May 20, 2018
    • Netflix YOLO 🤟🏻
      I view TC as a general benchmark = Base + rsu/4 + sign-on + yearly target bonus + ESPP discount

      The rest should be categorized as supplemental: they usually comes standard at the more generous companies. But informative for others to know.
      May 20, 2018
  • Amazon / Eng
    Hooliganss

    Amazon Eng

    BIO
    AWS
    Hooliganssmore
    Should we include health care coverage, free meals, free transportation, subsidized parking, etc? At some point it gets to be too much doesn’t it?
    May 20, 2018 2
    • Cisco Jjjjjjjjja
      OP
      I am thinking that they need to be included if they go beyond a few thousands of dollars in a year individually.
      May 20, 2018
    • Amazon / Eng RCMMT
      It does add up. I put googles benefits at 15000$ in additional value in TC when comparing it to Amazon.
      May 20, 2018
  • Microsoft Sct909
    Why not include 401k match + ESPP on top of base + annual bonus + annual RSU? Can be about a 10k swing. Not the largest but not that small either.
    May 20, 2018 0
  • Lazard fin/tech
    Total comp = base + bonus + vesting equity. That is the market number to determine where you stand, the other stuff are benefits on top.. Cases where signing bonuses are tied into yearly comp, then you'd include it (e.g. Amazon) otherwise don't.
    May 20, 2018 0
  • Microsoft Exity
    Well said - some companies provide 0 benefits and give more cash and people feel that’s better - overall there are many other factors that can make something attractive
    May 20, 2018 0

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