Why include sign-on bonus/stock in TC calculation?
It seems most people add signing bonus and RSUs (divided by vest period) to their new TC when switching jobs so they can claim huge % increase but this can be very misleading.
Those TC numbers vanish after year 1-2 (bonus) and the typical 4 year cliff (stock) so unless you switch jobs every few years (and manage to negotiate that big sign-on every time) that TC is not real.
I get that this is Blind and many are just here to stroke their egos but I think this inflated TC reporting has negative impacts and gives others unrealistic expectations. For every post I see about "I GTFO and doubled my TC!!!" I see another about someone who is miserable after switching jobs or depressed why their career is unfulfilling.
Maybe I am in the minority here but I consider sign-on bonus to be compensation for the job switch itself: losing your network, unvested stock, future bonuses, having to ramp at a new place, etc. So it should NOT be included in TC calculation imo.
At least for those who have figured out TC isn't their primary goal in life and are looking for a more fulfilling career, I would suggest ignoring sign-on in the TC calculation and assume your new job will be one that you actually want to stay at more than 4 years. Especially before you decide to leave a good situation because you think your TC is too low.
comments
TC means the 4 year package anyway. If you're in year 5 or more you just report what your TC is in current situation, which could be higher or lower than your original 4 year package.
Bonuses should be stated as "expected" & "actual team average".
TC or GTFO OPπ
Definitely checking with blind community what the expected RSU refresh is for that company is helpful.
Ok, here ya go ...
Old TC: 330k
New TC: just shy of 500k (using traditional Blind calc)
Seems like a no-brainer but my offer was very sign-on heavy and refreshers are NOT going to make up for that cliff. New base pay/bonus/refreshers are all LOWER so it makes it a much tougher call if I plan to stick at the new place long term.
Obviously I'm counting on stock to appreciate better at the new place but if entire market tanks I could be looking at making less TC over next 10 years even WITH the big sign on bonus.
Now if I were looking at a 50% bump in base pay alone I would be stupid to turn it down, even if very happy at current job. But a 50% bump in TC (according to Blind formula) is not nearly the same thing, hence my original post.
If the same people who come on here and post "I increased my TC 40% you losers should all GTFO ASAP LOL!!" also came on a year later and said "I DECREASED my TC 100k this year because no more sign-on cash!" then Blind would present a more balanced view. But where's the fun in that?