Should you expect to get paid less on 5th year at FAANG?
I think I'm not understanding how refreshers and/or the initial equity grant works at FAANG. Google is a good example since they publish most of this data. Assume you start at L5 (because you're not "expected" to be promoted to L6 in 5 years -- average is 6.5). If you start with an average package of: $185 (base) / 15% (bonus) / $500 (equity) Using the average refresher for L5 ($125K), your salary over five years would look like this: Base Bonus Initial Equity Refresher Total Year 1 $185,000 $27,750 $125,000 $0 $337,750 Year 2 $190,550 $28,583 $125,000 $31,250 $375,383 Year 3 $196,267 $29,440 $125,000 $62,500 $413,206 Year 4 $202,154 $30,323 $125,000 $93,750 $451,228 Year 5 $208,219 $31,233 $0 $125,000 $364,452 Notice how year 5 is less than year 2-4. Is that right?
Paid less St faang.. die op die
Yes, it's almost guaranteed your Year 5 TC will be markedly lower than Year 4, unless you got a really low sign on or are absolutely killing it at work.
Does this not cause turnover? Humans are incredibly loss averse. Unemployment studies show that people will go 1 year without working -- on average -- if it means a 10% pay cut. My model makes it look like a 14.1% pay cut. I'd imagine that's enough to make 50%+ people quit.
Yeah lots of people leave after 3-4 years. Many others stay because they are lazy or don't like the alternatives. The company is very willing to call the bluff for most people ... it's very big now, most (even senior) people are very dispensable.
With the current stock trajectory you will be paid less the first year
Low performers yes, high performers no.
You get refreshed 2nd year on to fill the pipe.. by the time you reach year5+ you have all these grants vesting....
This is pretty much how it works. But your pipe will be more or less full based on performance (perf can have a large impact at more senior levels).
That's a good point. Agreed...