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How to Negotiate a Big Tech Offer as a Software Engineer - Pragmatic Engineer and Rahul

How does a compensation package look like for a software engineer at tech companies? How do base salary, annual bonus, equity (options, RSUs), sign-on bonuses and perks usually add up? What parts of the package can you negotiate? How can you line up multiple offers at the same time? We talk about these and more in the video. You can -- and should! -- negotiate any offer you receive from a Big Tech company.

There are 4 primary parts to compensation in Big Tech:

  • Base salary
  • Annual bonus
  • Sign-on bonus
  • Equity

Perks could also be considered part of the compensation package, but these are generally standardized across all employees for a company, so they're not considered for the purposes of negotiation. (Think of things like 401(k) match, free food, game rooms, etc.)

It's important to understand the different parts of compensation because you can start to shift the conversation with companies to be more cooperative rather than zero-sum. For example, some companies have strict bands for their base salary, but are more willing to negotiate on their equity. Knowing this, along with your own utility for different types of comp, can lead to a final decision where both sides are happy.

Throughout any negotiation, it's important to be respectful in your communication, and also consider factors beyond financial compensation, such as team dynamics and the hiring manager's perception. Don't rush into signing a contract without careful consideration -- negotiate terms over email to allow for proper reflection.

More resources on negotiations:

This is a video from Gergely's YouTube channel.