How does your company compensate top performers?

Dec 3, 2019 11 Comments

Each company has their own system of compensation usually made up of signing bonuses, a salary, bonuses and stock.

Most companies have some means of providing extra comp for high performers through salary increases, bonus multipliers and stock refreshers.

What about the very top performers the company doesnt want to lose? Do you know of a mechanism in your company.

In FB, there is DE (discretionary equity aka additional equity) that is an additional stock grant on top of the annual refreshers and can dramatically change comp for top performers. Can be a real game changer.

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TOP 11 Comments
  • Wayfair / Eng BScK77
    Even without DE, FB does a great job rewarding performance. In my current M1 role at FB, there's a slightly larger incentive. Getting one notch above "meets" would result in an additional $12k cash and $50k equity.

    At higher levels at Wayfair, receiving a max perf rating got you a sweet 4% pay increase instead of the 2% for meets. That's it. There was no discretionary cash or equity available. So, for me, the difference between coasting and crushing would be about $3800 before taxes.

    As a manager at WF, it was very frustrating to have no tools to reward high performing team members. Promotion was really the only took and doesn't help high performers who weren't quite ready to take the next step.

    In the interest of full disclosure, it was possible to grant larger that 4% TC increases, but it required VP+ approval, and I only managed to make that happen once. If my manager wasn't VP level, it probably wouldn't have happened at all.
    Dec 3, 2019 0
  • Amazon random-ayy
    Not being dev listed, I guess.
    Dec 3, 2019 1
    • Amazon rand0miz3d
      at the top of the pay band for the next 2 years
      Dec 3, 2019
  • Microsoft YeahSo
    Special Stock Awards. They vest over four years, and you lose them if you leave.
    Dec 3, 2019 2
    • Facebook gEKd541
      OP
      Are these only given to the very top performers?
      Dec 3, 2019
    • Microsoft YeahSo
      No. Probably 20% receive an SSA at some point in their career, many people have had more than one. Size can vary from “nice vacation” to “car down payment” to “house down payment”.
      Dec 3, 2019
  • Groupon Arcteryx
    Spot bonuses and atta boy unfortunately
    Dec 3, 2019 0
  • Amazon CulStryBro
    At Amazon, TT (top tier) rating gets you top of band comp for next two years. Pretty much the only way to retain very top talent is rapid promos and subsequent TT ratings, with a dive and save in the mix (matching external offer).
    Dec 3, 2019 1
    • Facebook gEKd541
      OP
      Interesting- your salary is adjusted for top of band for two years and then drops back?
      Dec 3, 2019
  • Magic Leap sunday3
    Retention bonuses with lots of cash paid over a few years.
    Dec 3, 2019 0
  • Microsoft sammam
    Are you the mythical 10x engineer? If yes, DM me I can get you as a co founder for my startup.
    Dec 3, 2019 0

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