Are jobs with no bonus / equity worth considering?

Dec 23, 2021 15 Comments

When I worked for small companies (<50 employees) earlier in my career, I didn't know that one could get bonuses of 10-20% their salary. I thought it was just 1-3k Christmas perk the owners gave their employees as a thank you for their hard work. That changed when I joined JP Morgan.

Now, because of Levels and blind, I see that "big" companies routinely pay these "large" bonuses, and "tech" companies offer some sort of equity / RSU on top.

Interestingly, the base salary doesn't seem to fluctuate too much for most companies (of course there are outliers)... Given this information, I am genuinely wondering why anyone would NOT work for a tech company.

TC 155k, 10yoe, LCOL US

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TOP 15 Comments
  • USAA
    HETD

    Go to company page USAA

    HETD
    In my opinion, bonuses are like dangling a carrot in front of a horse. Especially if they are paid out on a regular, recurring basis. Spot bonuses or impromptu bonuses are one thing, but if your company has a bonus in a certain month every year, it’s not really a bonus; it’s a percentage of your salary that is withheld and variable based on whatever the company feels like that year.
    Dec 23, 2021 3
    • USAA
      HETD

      Go to company page USAA

      HETD
      Totally agree, the problem arises when calculating your total compensation. Recruiters and hiring managers love to point to bonuses as part of your total compensation as if it’s 100% guaranteed.

      You can’t neglect to count bonuses when comparing different job offers, but by that same token, you can’t totally rely on getting the bonus at all.

      My company used to all but guarantee 15-20% bonuses, and had a track record of delivering that when I joined. Bonuses have been decreasing every year since then, and last year we got 10.1%, literally 0.1% more than the bare minimum, in a year of record profits. It was a slap in the face to say the least.
      Dec 23, 2021
    • Microsoft / Eng
      Мicrosoft

      Go to company page Microsoft Eng

      BIO
      My TC badge was stolen, not turned off.
      Мicrosoft
      I can and do neglect to count bonuses when comparing different job offers. I've even explicitly told recruiters that I do not factor in discretionary compensation. They're the ones constantly begging me to come work for them, not the other way around.
      Dec 23, 2021
  • Google
    MetaPls

    Go to company page Google

    MetaPls
    Only if the job is at Netflix as a SWE/EM+.
    Dec 23, 2021 1
  • As a software engineer probably not except to get your foot in the door.
    But the world is not made up of only software engineers, and there are plenty of people who need to get their foot in the door.
    Dec 23, 2021 1
    • This seems to align with what I am experiencing . From where I sit, even if you manage to “get in” with 0-2 YoE, you are going to get small salaries and maybe another (non tech) can actually increase your salary. But once you make it to the top ~80th percentile salary for your specialty, non tech can’t afford you. Am I missing something?
      Dec 23, 2021
  • Microsoft / Eng
    Мicrosoft

    Go to company page Microsoft Eng

    BIO
    My TC badge was stolen, not turned off.
    Мicrosoft
    Why are you not working for a tech company?

    Also, TC + YoE or GTFO
    Dec 23, 2021 1
    • My mistake, editing with the mandatory info :)
      The reason this has come up is that I’m now looking. I came into a finance company and didn’t know about bonus targets, so I didn’t negotiate a big one.

      Levels + blind = more educated, time for a change.

      I’ve gotten offers and they’re a 0-10% increase. That’s good base comp, but has no bonus/equity. If it weren’t for levels + blind I would have thought that was a good move. At this point, I’m disheartened with small (non-tech) companies and just confirming that I should just go tech. I should easily be able to pass L5 with my exp, studying for L6.
      Dec 23, 2021
  • DoorDash
    RPTwo

    Go to company page DoorDash

    PRE
    Amazon
    RPTwo
    The answer is first few years it’s ok to get experience / foot in the door

    After ? Can’t think of a reason
    From senior dev onwards you basically can double your income.

    Some people either don’t know or can’t pass the interview / perform at this level

    The rest is excuses because it’s the same job
    Dec 23, 2021 0