Here’s how to Calculate TC

Dec 23, 2019 40 Comments

since so many people keep posting, here it is.

Base Salary + Annual Bonus + Amount of Stock per year

NO sign on
NO relocation stipend
NO 401K match
NO(thing) else

Don’t include anything else, this shit ain’t hard ya’ll.

(Yes, refreshers are included. Those fall under the third one - amount of stock per year)

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TOP 40 Comments
  • Amazon / Eng
    hLbt48

    Amazon Eng

    PRE
    FactSet
    hLbt48more
    This doesn’t work for amazon where sign on is part of your TC to offset 5/15/40/40 vesting schedule.
    Dec 23, 2019 5
    • PayPal nonorgani
      They probably got something like 5k sign on and it just doesn’t matter if you include it or not
      Dec 23, 2019
    • Google yaswe
      Yes. OP is just ignorant and refusing to correct. Sad.
      Dec 24, 2019
  • PayPal nonorgani
    Sign on is part of TC
    Dec 23, 2019 8
    • PayPal nonorgani
      @LinkedIn don’t you receive the sign on during the first year?
      Dec 23, 2019
    • PayPal nonorgani
      I think there should be two concepts. 1st year TC and expected average TC over 4 years or whatever
      Dec 23, 2019
  • Google PES2019
    Your TC is every penny your employer pays you in the form of stock or cash. This includes sign on, 401k match and even employer HSA contribution. This is real money you are being paid that you might not get elsewhere.
    Dec 23, 2019 2
    • PayPal wknu08
      Then why don't you include insurance money too and make it more complicated
      Dec 24, 2019
    • Google PES2019
      That is called benefits. You don’t know how much your health insurance will pay towards your medical bills. It could be $0 or $1M. But for 401k you know exactly how much that is you are getting
      Dec 24, 2019
  • Apple blurf
    But how do you calculate your GTFO?
    Dec 23, 2019 1
    • Citadel BrutеForce
      It's easy if TC is None your GTFO is 100%
      Dec 24, 2019
  • PayPal wknu08
    So do u want help in calculating ur TC!

    or GTFO...
    Dec 23, 2019 0
  • Synopsys droc
    TC = base_salary + annual_bonus + stocks_per_year + (signon/4)

    amortize your signon over 4 years
    Dec 24, 2019 5
    • Facebook _JianYang_
      Vested stock isn’t compensation, it’s income.
      Dec 24, 2019
    • Synopsys droc
      I would look at this as total money you are expected for 4 years at the time of joining and divide that total amount by 4 and that is your TC. Another way of looking at stocks is take the total amount of stocks given to you by your company in last 4 years (priced at the time of offering) and divide by 4. I am using 4 as the magic number as that is the usual vesting period.

      Sign on bonus is not repeated and refreshers are not guaranteed. Bonus is not guaranteed either and at times can be more than nominal. You may also get a pay hike every year or get promoted.
      Dec 25, 2019
  • Splunk / Eng
    jabberjaws

    Splunk Eng

    PRE
    Microsoft
    jabberjawsmore
    Technically “total compensation” should include everything: base, bonus, stock, 401k match, free meals, PTO, insurance. That’s how companies calculate it since it’s all compensation. However it’s not useful because 1) you can’t negotiate most of those and 2) it makes comparing with your peers in the same company confusing. That’s why stripping TC down to the barebones of stuff you can negotiate/earn is best for inter and intra company comparison.
    Dec 24, 2019 0
  • Splunk / Eng
    jabberjaws

    Splunk Eng

    PRE
    Microsoft
    jabberjawsmore
    If it isn’t on your W2 box 5, you don’t count it. This means you can count your sign on bonus for that year. But you can’t count stuff like 401k match, ESPP gains, etc
    Dec 24, 2019 5
    • Splunk / Eng
      jabberjaws

      Splunk Eng

      PRE
      Microsoft
      jabberjawsmore
      If I put in 0% in my 401k, I don’t get the benefit.
      Dec 24, 2019
    • Google PES2019
      Well, it would be a dumb decision to willingly let go of company match. Worst case you can cash out with some penalty and the money is yours immediately.
      Dec 24, 2019
  • Isn't it common knowledge? People are really adding all that extra fluff to their TC?
    Dec 23, 2019 1
    • Cruise Automation jackolan
      OP
      Exactly smh
      Dec 23, 2019
  • Facebook _JianYang_
    Considering vested stock (with its gain or loss) as part of compensation is bad math. The compensation is the grant, not the value at time of vesting.
    Dec 24, 2019 0

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