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Salary Structures

Overview

Engineering compensation mixes base salary, bonuses, equity, and benefits. Structures vary by company stage, geography, and role level—benchmarks are directional, not guarantees.

Why This Exists

Understanding components helps you compare offers fairly and plan cash flow, especially when equity is illiquid or volatile.

How It Works

Public companies often emphasize RSUs; startups use stock options with strike prices and cliffs. Bonuses may be target percentages with performance multipliers. Benefits (401k match, insurance, stipends) matter to total comp.

Architecture

architecture

flowchart TB TC[Total compensation] --> Base[Base] TC --> Bonus[Bonus] TC --> Equity[Equity] TC --> Ben[Benefits]

Key Concepts

Taxes and jurisdiction Equity taxation is complex and locale-specific—consult a qualified professional for large decisions.

Code Examples

- Base currency and payment cadence
- Bonus: target %, performance criteria, guarantee period
- Equity: type, vesting, cliff, refreshers, dilution risk
- Benefits: health, retirement match, PTO, parental leave
- Level and promotion cadence expectations

Interview Questions

How do levels map across companies?

Roughly via scope and impact, but titles are not 1:1—use leveling guides and recruiter calibration.

What is a four-year vest with a one-year cliff?

No equity vests until 12 months; then typically monthly—read your grant documents carefully.

Practice Problems

  • Build a spreadsheet modeling two offers with different equity volatility assumptions
  • List questions to ask HR about refresh grants and promotion equity bumps

Resources