How to calculate TC?

Jul 1, 2018 16 Comments

I think it is:

Salary + on hire bonus (even if years ago) + target bonus + vested stocks in 1yr (on-hire + refreshers)

Accurate? If I get above target bonus I still wouldn’t count that because it isn’t standard? Similarly if I am granted a bunch of stocks that vest over the next 4 or 5 years I wouldn’t count all of it towards TC?

comments

Want to comment? LOG IN or SIGN UP
TOP 16 Comments
  • Google / Eng
    huggies

    Go to company page Google Eng

    huggies
    Base + target bonus + current yearly stock. Does not include all future stock value or sign on.
    Jul 1, 2018 2
    • And you include granted bonus or target bonus?

      Seems like an easier way to compare apples to apples when looking at comp for another company.
      Jul 1, 2018
    • Google / Eng
      huggies

      Go to company page Google Eng

      huggies
      Depends if you’re talking about future comp or past comp. IMO tc is implicitly forward looking, so target bonus makes sense.
      Jul 1, 2018
  • Apple
    tuolumne

    Go to company page Apple

    tuolumne
    Don’t include sign on bonus if it’s not year one. Otherwise it’s base + expected cash bonus + whatever RSUs will be released to you this year.
    Jul 1, 2018 0
  • I include Microsoft’s 9k 401k match since I max the 401k ever year.
    Jul 1, 2018 4
    • Google
      UBdG56

      Go to company page Google

      UBdG56
      If only it was that good. The money is untaxed, and you need to pay penalty to withdraw before 59.5 . Real compensation doesn’t have these kinds of handcuffs (vest RSU, sell when you want or get Direct Deposit to checking account). I’m not saying 401k is not useful, I max out every year. But it’s not something to add to TC to inflate it.
      Jul 2, 2018
    • AMD
      MoJoRising

      Go to company page AMD

      MoJoRising
      What about your ESPP? Most of that probably ends up in investment accounts. Why would you include 401k match but not ESPP?

      RSUs are counted as income tax in the vested year for the value of vesting. You might get 20k worth of RSUs that are worth 5k at vest or 20k worth that is worth 200k at vest. You might include RSUs in total compensation but it isn't liquid when granted and you have no clue what the value will be when vested. In that since ESPPs are probably a more stable addition to TC because if you are getting a 10% discount at the cheaper of either end, that's guaranteed gain.
      Jun 14, 2019
  • I divided sign-on by 4 years
    Jul 1, 2018 1
  • Amazon / Eng
    FreeBees

    Go to company page Amazon Eng

    FreeBees
    Your W2 shows your TC
    Jul 2, 2018 1