4 ms·
As usual, failing to take into account equity and bonuses makes this less useful. Salary is <= 50% of the story for most senior roles.
by thurn 9y ago
As usual, failing to take into account equity and bonuses makes this less useful. Salary is <= 50% of the story for most senior roles.
- vonmoltke 9y agoI think "most" is too strong a statement.
- nerdponx 9y agoThat info isn't usually posted on job boards.
- KirinDave 9y agoI'm sorry, but I think this is much better for not including funny money from startups that give private equity grants, at least I in the lower bands of the range. I know people for whom half their pay is equity and they can't even afford to take the options. And for many places I've been, the stock was never sellable outside of shady private stock trading groups that your board may or may not let you sell to.
- dmoy 9y agoI agree that you probably shouldn't include stock that can't be sold. There's gotta be a middle ground though, because if you're at a big established tech company with a senior-ish role, your comp is like nearing or exceeding 50% bonus&stock, which you can liquidate on the spot and turn into actual cash. So if you take someone whose base salary is 180k at whatever big tech, you're missing the part where they actually make >300k/yr in cash.
- KirinDave 9y agoIt's only cash if the company find a way to make it real, though. I certainly never made 150kyr,in stock. How would you even exercise that and then handle the taxes? I guess if you have a retention salary?
- wvao0e9nt3 9y agoWhat often happens is you hold it for a while to reduce the tax burden. Then when you sell it, say you want $100k, you actually sell $115k to cover the extra 15% in taxes. (You'll end up needing a little more to cover the extra 15k, but that's easier than covering the 100k.)
- KirinDave 9y agoThis is a recipe to pay massive taxes though. If you have the cash you'd prefer to do an 83b election and pay the taxes when the stock is very cheap. It's also important to note that the clock for long term capital gains tax starts at the date of exercise, so you'd still need to exercise the options, which will cost money.
- dmoy 9y agoThat's not how a stock grant works now if they're just straight up giving you the shares, not via options. It gets taxed as ordinary income as soon as it vests, nothing you can do about it.
- KirinDave 9y agoOkay, but direct grants are a somewhat rare condition, no? Most folks here would be dealing with ISOs.
- user5994461 9y agoNo, ISO are terrible. Most folks would be dealing in RSU, and if they don't they are being taken advantage of.
- KirinDave 9y agoWow, you really have no idea what you're talking about.
- 9y ago
- wvao0e9nt3 9y agoYeah, but not everyone's non-salary income is funny money from startups. I work at a Fortune 100 and get stock grants (not options, but actual shares) as part of my compensation. It's real and I can trade it that day (and pay high taxes on it), or hold it and trade it later.
- KirinDave 9y agoI had this situation at my last employer and yes, if it's a publicly traded company the situation is different. I don't see why you felt the need to make a fresh anonymous accont to share this?
- acchow 9y agoGoogle and FB and Apple stock are not "funny money"
- dentemple 9y agoIt seems to quite accurately account for equity's +$0/yr increase to yearly salary.