Total comp skews people’s expectations of what they should expect to bring home and budget. Do you think we should show total comp without the base and company market status?
Let’s go though an example with TC $200k
Often times the breakdown is:
140 base
60 stock yearly (options or rsu) — private company
Your take home is ~$7500 /mo
Yearly vesting liquidation opportunity:$0
That’s very different than another breakdown of the same total comp.
200 TC
190 Base
10k stock yearly (RSU public)
Take home ~9400 /mo
Yearly vesting liquidity: $10k +/- market chance
Actual monthly average = ~ 10k
Same “TC” completely different financial situation.
Prove me wrong.
BC: 138k
Stock: 20k yearly — private
TC: 158
#personalfinance #TC #base #salary #software #engineering
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comments
If you were offered a TC of 350, put that, not the 600 that you are at due to stock value increasing.
Might understand the argument for pre-ipo but anything else makes no sense.
Even if people are trying to join startups and going through the painful exercise of determining the value of stock options, these data points are not useful either. For 1, option from company A can’t be compared with option from company B. Secondly option from company A at time t1, could be valued very differently compared to time t2.
Most people posting their TC work for public companies, where stock is just as good as cash. Definitely need to stick to TC - anything else would be stupid.
For public cos: "TC $200k + $150k RSU" at grant time
For private cos: "TC $200k + $150k paper money" valued at the last round I guess.
Something like that would be more helpful for negotiating imo. I post my TC like that bc I'm at a startup and it feels ridiculous to post a $400k TC from a startup lol. Like it's clearly a smaller number plus some big dreams versus actual TC.