tcmaxxer69 in
Software Engineer
Total comp. calculation is flawed for irregular vesting schedules
Total comp. for companies like Amazon that use a 5% 15% 40% 40% vesting schedule are being over reported.
For example, TC for SDE I at Amazon is reported at $175,815 (lets say 25k avg. annual stock). However, first year stocks will be 5k, so the TC is being over reported by 20k.
Vesting schedules are somewhat meaningless because by the 2/3/4th year, you end up renegotiating stocks anyways. It also doesn't account for the short average tenure at Amazon. If the average tenure is short, the majority of TCs will be over reported.
Change total comp. to annualized TC (existing employees) or 1st year TC (new offers).

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zuhayeerFounder at Levels.fyi
I hear you on this, and we're working on adding a way to view just the first year TC instead of the annualized TC.
But we did intentionally calculate it this way for now as we believe it to be most accurate. For example with Amazon, because of their backloaded vesting schedule, they make up for it for hefty sign on bonuses in the first two years. Those sign on bonuses would also skew compensation as its only represented in the first two years. So for consistency to annualize the values, we do the same thing we do with the stock, we take the sum of the two sign on bonuses and divide it by the 4 year vesting period giving us an annualized bonus value.
This also allows us to individually run aggregations (such as averages, medians, etc) on separate components of compensation such as base, stock, and bonuses knowing that they are all annualized representations regardless of company or structure. So in summary, it allows us to make all our figures comparable apple to apples.
That said, I hear you, and at least a way to toggle and view the first year of TC would give users the choice! Appreciate this feedback, and I do want to mention that we are constantly giving this thought since a lot more companies are now embracing different types of vesting schedules (more recently, Pinterest with 50-33-17 and DoorDash with 40-30-20-10)
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tcmaxxer69Software Engineer
Thanks for the reply and further background on it! I'm glad it's being thought about.
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