I see ‘TC’ quite often and as most people refer to it as including: Base Salary + Restricted Stock Units + Bonus My understanding of total comp is just that - TOTAL COMPENSATION THE COMPANY SPENDS ON YOU which includes: Base Salary + RSU + Bonus + Paid Time Off + Holiday Pay + Sick Pay + Benefits (Med/Vision/Dental) + 401k Match There is a significant difference in the calculation. I’d like your feedback and clarifications.
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That's company point of view. For employees, base, RSU and bonus. Most of techs' 401K benefits are like up to 10K per year. Not significant. PTO is only cashed out at exit. Health care is hard to calculate, highly dependent on plan and family. So our TC notion is just fine.
Only 10k per year is a little under 3M at the end of your career. Still not significant?
300 years?
Yeah no, TC = Base, stocks and bonus.
If you're including stocks, wouldn't it make sense to also include company 401k contributions?
401k match tops out at a pretty small amount. Like, sure it's compensation but it's probably not enough to worry about. Assuming 200k salary and a typical 4% match that's only $8k.
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My brain is too fried from Leetcoding to calculate all those new variables in your version of TC, OP. Keep it simple with salary + RSU + recurring bonus.
Because you get bananas 🍌 at Amazon apart from salary + RSU + bonus
LOL, Pinterest thinks we get bonus 😂
Hahaha... they got you good OP. Those funny hr people
Base+bonus+rsu is a sufficiently precise heuristic. No complication necessary.
Makes sense but it’s just harder to calculate and can introduce too much variance
I think most people only consider Base + Bonus + RSU + 401k match (if significant)
I include 401k match too, cuz it literally is free money. I don’t really understand the argument of not including it
Because you have to contribute money to get that match. Base + bonus + RSU is yours just for working. Now if a company contributed to your 401(k) without you contributing, that’s a different story
I have no idea what the value of my benefits are. No one includes that in their TC because most people don’t know.
Depends on which benefits. Most people have a pretty good idea of what their stock, options, ESPP, and/or 401k benefits are. Most people can also easily quantify employer HSA contributions or other cash equivalent benefits like gas allowances, food, etc.
Bloomberg puts value of benefits right on the comp statement at around $30k
Also not that, it's total value to you. If employer has free child care and you have no children you get no benefit.... But since these are small % of monetary compensation no one gaf about including these in comparisons. Ps what's your TC??
Dunno about you but childcare is $3.5k a month or roughly $40k a year post-tax ($80k pre-tax).
3500 a month for how many kids?