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Since I'm an SWE, I actually wrote a simple program to help calculate total compensation that factors salary, bonus, sign on, initial RSU grant, RSU refreshers,
by fatnoah 6y ago
Since I'm an SWE, I actually wrote a simple program to help calculate total compensation that factors salary, bonus, sign on, initial RSU grant, RSU refreshers, and expected company stock bonus. It generates year-by-year compensation as well as an average for the first four years.
It by no means accounts for everything, but at some level the $100/month I get for transportation and other benefits is a fraction of a percent of my overall compensation, so I don't bother thinking of those.
Regarding options, I value those at $0 unless I'm joining the next hottest thing or IPO-imminent company. In those cases, I'd apply some discount based on probability of the exit, etc. Those are so hard to calculate, though. It feels more like winning a lottery than anything.
I started my life in startups and am three for three in "success" in that two were acquired and one is still chugging and making profit after 15 years. In all cases, net value of my options was $0, even when I owned ~1% of all non-founder options. The money I made in the exit was due to being the head of Engineering, so I got a cash bonus from the investor as part of the executive contract, and I got retention RSUs from the acquiring company.