What Makes Up Total Compensation (TC)

This video outlines the most important components of compensation in the tech industry and emphasizes how to assess and prioritize them effectively—especially when evaluating job offers or planning a negotiation.

• Total compensation (TC) typically includes base salary, equity, and bonuses, but many companies also add less impactful perks like free meals, fitness stipends, or game rooms.
• The most meaningful and negotiable parts of compensation are base salary, equity (like RSUs), and signing bonuses. These are the components with the greatest financial impact and room for movement in offer discussions.
• Perks like catered lunches or company offsites may sound appealing but usually amount to minor financial value—typically just a few hundred dollars a month—and shouldn’t drive decision-making.
• Benefits such as 401(k) matching and paid time off can be substantial, especially at top-tier companies, but are generally standardized and not negotiable between candidates.
• When evaluating an offer, focus on the components that both materially affect take-home pay and can be influenced during negotiation: base, bonus, and especially equity.