Break down total compensation

Software engineering offers, especially at larger tech companies, are more than a salary. Total compensation (TC) combines several parts with different rules, timing, and risk. Two offers with the same base salary can differ by tens of thousands a year once you add everything up - so the first step in any negotiation is knowing exactly what you are being offered.

• Base salary: guaranteed pay, the foundation of future raises and often of your bonus.
• Annual bonus: usually a target percentage of base. The actual payout can depend on company and individual performance.
• Equity: stock (RSUs) or stock options, granted up front and earned over a vesting schedule, commonly four years.
• Signing bonus: a one-time payment, often repayable if you leave within a year. Some offers split it across two years.
• Relocation: a lump sum or covered moving costs.
• Benefits: retirement matching, health insurance, parental leave, remote work, learning budgets, paid time off.

A worked example: a 160,000 base, a 10% bonus, a 240,000 equity grant over 4 years and a 25,000 signing bonus.

• Ongoing: 160,000 + 16,000 + 60,000 = 236,000 a year.
• Year one: the same plus the signing bonus = 261,000.

Notice the gap between year one and later years. A signing bonus inflates the first year only, and the initial equity grant runs out after it vests. Many companies award refreshers (new annual grants) to keep compensation level, but they are rarely guaranteed in the offer. When you compare offers, compare the same years, and ask what refreshers typically look like.