Compensation Package Breakdown — Understanding Your Full Offer

How to calculate total compensation

To compare two offers accurately, convert everything to annual total compensation (TC):

• Base salary — as stated
• Bonus — use target, not maximum. A 20% target bonus on $160K base = $32K
• Equity — divide the total grant by the vesting period. $200K RSUs / 4 years = $50K/year at current stock price
• Signing bonus — divide by 2 (since it is typically prorated over 24 months for comparison purposes). $30K signing = $15K/year equivalent

Example: $160K base + $32K bonus (20% target) + $50K equity + $15K signing = $257K TC

What to watch for

• Bonus payout history — target bonus is not guaranteed. Ask about historical payout rates
• Equity cliff — most grants have a 1-year cliff before any vesting begins. Understand when you actually receive anything
• Signing bonus clawback terms — typically you owe back a prorated amount if you leave within 12–24 months
• Stock price volatility — RSU value depends on the stock price at vesting, which changes

Components you can negotiate

Base salary

The recurring foundation of your compensation. Also the component employers are most willing to hold firm on because it affects long-term cost, benefits calculations, and comp bands. Always negotiate — but understand that base has the tightest ceiling.

Signing bonus

Often the most negotiable component. It is a one-time cost for the employer and does not affect comp bands or ongoing costs. If the base is stuck, push on signing. "If you can't get to $185K on base, could we close the gap with a signing bonus?" often works.

Equity

At public companies, equity grants are often in bands tied to level. There may be flexibility within the band. At private companies, equity negotiation is more individual. Know what the strike price and current valuation are before evaluating.

Title

Sometimes negotiable without changing the budget. A title bump from "Senior Engineer" to "Staff Engineer" or "Manager" to "Senior Manager" can happen without a compensation change — and matters for your market signal and negotiating power in future offers.

Start date, remote policy, review timeline

All negotiable at many companies. A 6-month review (instead of 12) gives you a raise opportunity twice as fast in year one. Remote flexibility may not be in the offer letter but is often granted with a direct ask.