If you're talking about total compensation, 250k is on the low end. Base of $140-190k is common. Add to that $10-30k of cash bonus and $100k of stocks.
One thing I'm always curious about: most of these discussions seem to be targeted at college grads, discussing where they could be after their first 5 years in the industry. The sense I've gotten is that these big companies tend to compensate all new hires approximately the same, caring little about experience outside their company or perhaps one of the other big companies. It seems to me that smaller, less well known, companies are more hungry for experienced people, because they are relatively starved of people who can drive architecture, decision making, and hiring, and are thus more willing to take a risk on paying a premium for experience.
So my question is: stipulating that the numbers favor bigcos for fresh graduates, is the same true for people who already have that 5 (or 8, or 15, or 20) years of experience elsewhere?
At 3.5 years of experience Google offered me about double what I'm hearing for new grad total comp, so it seems that they value at least the first few years. Given the oft-cited ageism in the industry, I expect that tails off pretty quickly. I wouldn't be surprised if 10 years of experience wasn't worth noticeably more than 5 years.
RSUs are stocks. A grant of 1 RSU means that on the date it vests, the company will buy 1 share of its stock and drop it into your account at a major brokerage. It's considered compensation and taxed as income, though it's often withheld as bonus income.
My point was that inasmuch as they don't vest the same year they're granted, RSUs are nothing but a commitment that part of your compensation in the future will be in the form of stock.
If I grant you $1,000,000 in RSUs, vesting over 1000 years, is your annual income $1,000,000 ? No, it's $1,000.
Agreed, but I don't see that mistake being made often.
Generally what happens is a laddering of grants. 100k over 4 years. Then a year later, another 100k grant. Then again the 3rd year. And again the 4 year. Once you hit that 5th year, you are indeed seeing 100k in stock each year.
When people cite total comp, including RSUs, they only include the RSUs that vest in that year. At least, this is how the recruiters at the big companies talk about it, which is typically where total comp numbers come from. So a grant of $300k worth of RSUs vesting evenly over 4 years counts as $75k of compensation.
Obviously, it matters very much what the market price of the stock is. Your grant will be for a certain number of shares on some vesting schedule, not for a certain cash value.
Remember kids, stock prices don't always go up. Some stock prices go down, and sometimes all stock prices go down together. Those RSUs that, if fully vested, would have a market price of $400k at time of hire, may well be worth anything from $0 to $millions at the time they actually vest.
When talking about companies as well established as these the risk is a lot lower. In some cases since the goal is to give you a set number in compensation they will factor in a poor stock performance and give you an adjustment to make up for it.
Do you mean companies as well established as Yahoo, MySpace, AOL, and Netscape? Or companies as well established as Woolworth, Kodak, MCI, and Sears? Or perhaps you had in mind the New York Central Railroad, LTV, and Pan American Airlines?
Yes, it is possible that you will be given additional grants or options repricing if your company's stock price declines. Usually not, unless you're a key employee or top performer, but maybe. But that doesn't mean the price won't just keep going down anyway. To say nothing of the bonuses and raises you won't get, or the mandatory across-the-board 10% pay cuts, or the elimination of all the miscellaneous perks. At least, unlike the employees of many of the companies I named above, you won't have a pension you can lose too.
I know it's hard to believe. Intellectually, you can look at history and accept, know very well, that most of these companies will fail someday, and many of them probably in the very near future. But viscerally, you can't get it, because they feel invincible right now. But they aren't. Believe it[0].
Stock bonus for Sr Dev at microsoft is up to 30% of base(vested over 5 years). That won't hit 100k even if you are at fifth year. Is it typical for google, facebook to give 100k in stocks per year (assuming they vest more a less over same 5 years or so).
It's not like they give you 100k RSUs automatically each year, but I think the math tends to average out so that that is basically what is happening.
For instance you may get 100k-150k initial allotment and suppose you get promoted in 18-24 months, they will likely give you a refresher of 150k-225k plus whatever bump you got on your salary. It's also important to note that the refreshers don't have the one year cliff of your initial grant, it starts vesting immediately.
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