So I understand base + Bonus. My question is around stocks. Do you add the stock that was awarded that year or the option that is vesting, which would by definition include the ones awarded previous year but will/are vested this year? Example/s Scenario A: Base: 50k Bonus: 10% (5k) Stock AWARDED in 2019 (which will vest starting 2020): 5k Total: 60k Scenario B: Base: 50k Bonus: 10% (5k) Stock VESTED in 2019 (which were awarded in previous years): 10k Total: 65k
I'd say TC is the real money I get in this year, not stocks that're granted to me but vested later.
Same here. TC is the total of a given year. Unvested stock doesn't count.. You don't have it yet and if you leave you'll lose it
Total income on your tax return.
Maybe I'm missing something but you get taxed on the gains of the vested stocks ONLY when you sell them? If you don't sell, they won't appear on your tax return even if they're vested, isn't it? Unless you tell me that some of it is already withheld when they vest?
Whenever stock vests its reported on your W2 and taxed When you sell you pay tax only on profit you make not principal
TC to me is paper money + assets, paper money = cash comp And assets = RSUs etc. Count RSUs only when they are vested. Grant date doesn't matter. On vesting you convert assets into paper money which will show on your w2 anyway. Also I know blind doesn't count other benefits, but it's worth considering how much 401k match the company does, or does it offer free food, or what health/vision/dental insurance it provides, those things are indirectly adding to your TC. Without those you would end up using your TC towards those costs.
Yeah very imp to include 401K, free food etc!
TC is like total income inflow. Basic finance stuff. It is surprising that many people cant figure this out.
Well its not exactly total income inflow in a year because it doesn't include one time awards like signing bonus. Id define it as most likely recurring income influx
If getting an offer, figure out how much you will generally get paid for your planned duration. Say you got a base of 100k, a sign on bonus of 100k over 2 yrs and RSU worth 400k over 4 years. If you plan on staying 4 years, then you have around 225k TC, if for 2 years then 250k TC.
This makes sense too. Thanks.
TC = income on your W-2 from primary work.
I'm curious too. We get stock vesting every 3 months and every year refreshers. What's my TC?
Whatever stocks vest that year including refreshers
You mean A+B?