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“Salary” data is often grossly misinterpreted by those that don’t understand how tech comp packages work. Most highly compensated people in tech don’t make most
by JCM9 5y ago
“Salary” data is often grossly misinterpreted by those that don’t understand how tech comp packages work. Most highly compensated people in tech don’t make most of their money from “salary” but rather equity (eg RSUs). “Salary” might easily be only 25% or less of their total cash-equivalent compensation in a given year. Seems likely this article is skewed towards jobs that get most of their comp via salary which (generally speaking) are not the most sought after roles in tech.
- Kye 5y agoIs that the part that's only worth usable money in a liquidity event?
- JCM9 5y agoRSUs are generally used for employees of publicly traded companies. They are are shares that you are awarded as comp but can only sell after a certain date. They are still at the whims of the market share price but are fully liquid (once vested) and easy to value (just look up the current share price). I’m a given year someone might get $150k “salary” but RSUs worth another $300k. Very different from say equity in a startup which is very hard to value and often ends up being worth little to nothing.
- Redoubts 5y agoif it's a public company, RSUs are basically cash