At big tech like meta, google, apple, Amazon, Uber etc the compensation for roles starting from EManager and above can easily touch $1M. But I’m also noticing that their base salary can only go as high as 500k (if they’re a VP for eg). Given that the average age group of these senior folks would be late 30s-early 40s, a base of 300-500k is pretty low in HCoL cities like Bay Area Seattle etc. How does getting stocks justify the base salary in such cases? How do they manage to maintain a good lifestyle since not everyone sells their stocks? Or do they? Would appreciate serious discussion/answers. Thanks. Edit- TC 200k. Yoe 5. Education masters. Role associate consultant #personalfinance #investments #faang #compensation #techcareer #tech #money #meta #uber #amazon #google #doordash #netflix #apple #stock
They all sell their RSUs at vest and have more than enough liquid to cover an expensive lifestyle without having to “live off” their base salary month to month
“A base of 300-500k is low for HCOL areas”… lol In my experience the more senior you get the more of your comp is in stock, which makes sense given that you have more sway on company performance. I don’t know many places that have higher base than 200-250k. Happy to be proved wrong.
You’re right. A notable exception is Netflix with their $500k all-cash offers for L5
They can always sell their stocks when they need. Also, in whatever lifestyle you live, do you think 300k base is low for regular expenses, beyond buying a home or cars?
I hv 2 kids, mortgage, private schools. Monthly expenses still dont reach 15k
While there are some posts here about people becoming millionaires because they didn’t sell their RSUs and the stock went to the moon, I think the majority of people, especially at that level, are selling more frequently and either living off it or reinvesting in something more diversified.
Most people I speak with, immediately sell rsu at vest, and use for lifestyle reasons, as most thought they were working for a "safe firm" who never does layoffs and the money will always keep coming.
You sell your stocks. You can hold out a year for cap gains if you think the stock will be worth around the same/not drop. Either, it's best to sell and divest your portfolio as soon as you can. Otherwise you have significant exposure. People forget this because big tech stocks have gone up up up for years, but just holding on to your company's stock is generally a bad idea.
There are no cap gains if you sell RSUs at vest (or minimal since you can't sell immediately at vest, day or two) (Edited to specify I was talking about RSU for tax handling).
I still get a mix of ISOs and RSUs.
When you make $10M after taxes a year or more, typically your base is not enough for living in atherton or Palo Alto. So they sell their rsu on vest
Don't forget bonuses which can exceed 40% at higher levels and, yes, people sell their rsus. At least a portion of it
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If you want honest feedback from the community then offer some relevant information first, like your tc role etc. tell us more about your role, progression, education etc… and the ask for advice.
Updated. But how does that even matter
We work on a barter system here, your info for mine