Ram in  
Software Engineer  

What does "Average Annual Total Compensation" mean?

I would like to understand this terminology. Does it include the cost of health insurance, 401K match, RSU grants, Paid vacation, Social security and Medicare taxes, Life insurance, etc.


While going through fyi.levels annual report for 2024 it appears that total compensation is said to include only "Salary", "RSU grant" and "Bonus'.


It is unclear as to which of the two is more appropriate i.e. does this differ from company to company?


While browsing I noticed the following on fyi.levels for IBM. This appears to suggest the sum of Salary + Bonus +RSU grant


  • Base Salary: $225,818
  • Average Annual Total Compensation: $239,618


It would be very helpful if folks who are more informed can shed light on this topic.


Regards,

Ram

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zuhayeerFounder at Levels.fyi 
Average annual total compensation represents the sum of the monetary components annualized to 1 year. For example if there is a weighted stock vesting schedule or a one time bonus, we annualize the values to ensure we provide a yearly average.

This however does not include benefits (as you mention initially).
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eramSoftware Engineer  
Thanks for sharing your understanding. The same query to AI tools such as chatgpt and gemini seem to indicate otherwise i.e. they include both monetary and non-monetary elements.

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