This Is Why FAANG Engineers Make So Much Money - Tech Compensation Breakdown

Learn about the 4 components of compensation:

1. Base salary
2. Sign-on bonus
3. Performance bonus
4. Equity

The latter two are less understood, and they are key to understanding why compensation at tier 1 tech companies is so high.

And we also talk about how Mark Zuckerberg actually had a pretty big impact on increasing tech compensation as a whole!

[The Insider's Guide To Negotiating Your Tech Salary And Compensation](https://www.jointaro.com/course/the-insiders-guide-to-negotiating-your-tech-salary-and-compensation/)

Every Senior+ Engineer Must Decide: IC vs Management Track

There is one good motivation to become an engineering people manager: to help people. If that's not the priority, you should not become an EM (and you should avoid working with those types of managers).

Daniel toggled between individual contributor (IC) and manager several times in his career. His most fruitful experience was as a very senior IC engineer at Meta -- he had the influence + context of a manager, but none of the headache associated with the job. 

Connect with Daniel on [LinkedIn](https://www.linkedin.com/in/danieltomko/)

Related content: 
- [Questions You Can Ask To Evaluate An Engineering Manager](https://www.jointaro.com/lesson/VOQc7vIzQ4STtw7UrB29/questions-you-can-ask-to-evaluate-an-engineering-manager/)
- [How Do Effective Engineering Leaders Help Their Teams Achieve More?](https://www.jointaro.com/lesson/xGJDCG7VL4hcZaq5XL92/how-do-effective-engineering-leaders-help-their-teams-achieve-more/)

Why Big Tech Compensation Is So High - RSUs

This video explains how **Restricted Stock Units (RSUs)** work as a major part of tech compensation, especially in large tech companies. It outlines key timing mechanisms, industry trends, and the outsized impact RSUs can have on total earnings.

- **RSUs are company shares granted over time**, typically as part of a four-year compensation package. For example, an employee may be awarded 4,000 shares and receive 1,000 per year.
- **Most companies enforce a one-year cliff**, meaning no shares are received until completing the first full year. However, some companies like Google and Facebook have moved toward shorter cliffs, such as three months.
- **After the cliff, vesting usually occurs quarterly or monthly**, gradually releasing shares to the employee. This incentivizes ongoing retention.
- **Graphics help illustrate vesting schedules**, showing an initial cliff followed by incremental monthly or quarterly share distributions over the remaining years.
- **RSUs can far exceed base salary in total value**, especially at the senior level. In some cases, RSUs make up 75% or more of an individual's total compensation in big tech.

Level Up Your Code Quality As A Software Engineer [Part 22] - Too Many Comments

Comments is a coding technique everyone learns particularly early, which makes sense as newbies need the extra hand-holding. However, there's a weird phenomenon where code comments go from a good thing to a bad thing very rapidly in your career. This lesson will teach you:

- Why comments are so prolific across code
- How comments end up hurting rather than helping, especially at scale and with large codebases
- What you should do instead of adding a bunch of code comments
- The fundamental mentality around writing good, clean, readable code, which Alex breaks down with a concrete refactoring example

Engineering Manager Feedback Example: Good vs. Bad

This segment provides a powerful comparison between poor and effective feedback in engineering management, particularly around the challenge of slow code review cycles. It emphasizes how quality feedback should be empathetic, actionable, and grounded in broader principles to foster growth.

- **Bad feedback is vague and unhelpful**: Simply stating “your code isn’t merging fast enough—fix it” lacks empathy, specifics, and any guidance on how to actually improve the situation.
- **Good feedback is empathetic and constructive**: The improved example acknowledges the *team’s* perspective, suggesting the engineer break up large diffs to make reviews easier and faster, thus benefiting everyone.
- **Actionable steps are clearly defined**: Rather than just pointing out a problem, the feedback offers a tangible next step—submit smaller, more digestible diffs.
- **Feedback includes operating principles**: It reframes code reviews as a shared team activity, encouraging engineers to think like editors and consider the reviewer experience—empowering them to continuously improve without needing micro-managed lists.
- **Nuance and context matter**: Effective feedback often requires more thoughtful, detailed communication—brevity shouldn’t come at the cost of clarity or support.

A Huge Way Companies Reward You For Joining - Signing Bonus

This video explains the role of signing bonuses in tech compensation, particularly how they’re used by companies to stay competitive and how candidates should evaluate them carefully when reviewing offers.

- **Signing bonuses are one-time cash payments** intended to sweeten a job offer and help a company stand out among competing opportunities.
- **Unlike base salary and equity, signing bonuses are not banded**, meaning they can be more flexible and generous—sometimes reaching up to $175K–$200K for top-tier roles at big tech firms.
- **Because signing bonuses are tied to retention**, they’re typically prorated over time. If the full amount is paid upfront and the employee leaves early, a portion must usually be repaid.
- **Most signing bonuses are structured around a one-year commitment**, but some companies now split them over two years, spreading risk and encouraging longer retention.
- **It's important to read the fine print**, especially around repayment terms and payout schedules, since these details can affect real take-home compensation and decision-making.

Nail Your Promotion As A Software Engineer [Part 14] - Observe Other Engineers

Don't know what you need to do as a software engineer to get promoted? Observe engineers who are better than you! However, this is a surprisingly difficult skill to develop. This lesson teaches you:

- Which engineers you should observe and how to find them
- What you should be looking for when observing other engineers
- What "silent hero" work is and how very senior engineers do a lot of it
- The concrete avenues you should look at when trying to figure out why a higher-level engineer is superior to you
- Why getting jealous of engineers above you is a colossal waste of time, even if you are truly better than them

DSA Crash Course [Part 35] - Zipper Lists Walkthrough

In this lesson, Alvin walks through the python implementation for the *zipper_lists* problem.

Code along and test your work in the following editor workspace: <https://structy.net/problems/zipper-lists?language=py>

If you need additional support taking these DSA skills and actually applying them, take [**Alvin's**](https://www.linkedin.com/in/alvin-zablan-b73a92117/) *complete* data structures and algorithms course on [**Structy**](https://structy.net/?utm_source=taro). You can try out the concepts yourself in their interactive code editor and learn advanced DSA patterns like stack exhaustive recursion.

Use [**this link to get 20% off**](https://structy.net/purchase?promo_code=taro20) the entire Structy DSA learning experience.

Follow Alvin on LinkedIn: <https://www.linkedin.com/in/alvin-zablan-b73a92117/>

Maximize Your Productivity As A Software Engineer [Part 22] - Introspect And Reflect

As software engineers, we are constantly getting things wrong, including our productivity system. This is why it's important to learn how to evolve and improve over time - There are very things in engineering where you can just set it and forget it. This lesson teaches you:

- How to set up introspection time and why it's important
- What questions to ask yourself when you reflect
- How to process action items to improve your productivity system

Write A Stellar Resume As A Software Engineer [Part 13] - ATS Obsession

With so many resumes being sent in to any decent engineer job opening, automation is often deployed to filter out resumes. The big piece behind this is the ATS. This lesson teaches you:

- What an ATS (Applicant Tracking System) is
- How the ATS fits into the tech recruiting pipeline and how engineers commonly misunderstand that process
- What engineers usually do to incorrectly optimize for the ATS while sabotaging their overall changes
- What you need to do to properly get past the ATS

Inside TaroGPT - Building A Career Coach Chatbot For Engineers

TaroGPT is an AI chatbot designed specifically to help engineers, trained on the 1000s of hours of expert career advice on the Taro platform, crafted by tech leaders at companies like Google, Meta, Amazon, hyper-growth startups, and more. In this session, we go through the system design and product philosophy behind the product.

TaroGPT is a collaboration between 2 companies (and 2 Alexs):

- **Taro (obviously)** - We only built the frontend, and Alex Chiou was responsible for the Android and iOS implementations.
- [**Sentiyen**](https://sentiyen.com/) - This is [Alex Perelman's](https://www.linkedin.com/in/alexperelman/) company, and they built the backend that does all the cool machine learning and AI logic.

To learn more about front-end (Android, iOS, web) system design, check out Alex's master series here: [System Design Masterclass: Taro Playlists](https://www.jointaro.com/playlist/dChIyTQcu2Ct5VC70lki/)

If you don't have TaroGPT yet, you can download it here:

- **Android** - <https://play.google.com/store/apps/details?id=com.randomappsinc.techcareergrowth>
- **iOS** - <https://apps.apple.com/us/app/taro-ai-gpt-career-coach-chat/id1605094641>

Lastly, here's the link to the presentation slides:

- [Alex (Taro) - Mobile System Design](https://docs.google.com/presentation/d/1JKp3xnkdfBNUiCfpDTlpjzzbsSlRrXtZFDMeigxP454/edit?usp=sharing)
- [Alex (Sentiyen) - Backend/ML/AI System Design](https://drive.google.com/file/d/1xRsyMi0baRBxVEj7lTVvd6SfUo3gRM9c/view?usp=sharing)

Ace Your Tech Interview As A Software Engineer [Part 12] - Job “Requirements”

We've all seen the insane "entry-level" job postings that require 3-5 years of experience. This lesson teaches you:

- Why job postings are so ridiculous (hint: it's how capitalism works)
- How treating job requirements as a wish list feeds into the overall strategy of quantity &gt; quality
- The amount of requirements met that you need to justify applying for a job

15 SWE Years In 1.5 Hours [Part 9] - Writing A Good Resume

Every successful job search starts off with a polished, well-written resume. However, there's so much online misinformation about what makes a good one. This lesson teaches you:

- Why it's best to keep your resume simple
- The optimal length for a software engineer resume
- How to think about summary sections on resumes

To dive deeper into writing a better resume, take our course here: [Get More Interviews: Write A Stellar Resume As A Software Engineer](https://www.jointaro.com/course/get-more-interviews-write-a-stellar-resume-as-a-software-engineer/)

How To Discover Your Work Passions And Hatreds

Which of the following should you do to discover your work passion?

What of these is a legitimate, strong sign that something is a work passion for you?

- *Regularly take time to reflect on how much you enjoy your work, especially when you're earlier-in-career*.
- Write down everything you do. Here are some examples of common things software engineers do:
  - Writing code
  - Reviewing code
  - Meetings
  - Working with JIRA
  - Talking with cross-functional stakeholders
  - Fixing bugs
- Split all the items into 3 buckets:
  - Things you genuinely enjoy: Tasks/behaviors you are excited to do and can lose track of time doing them.
  - Neutral: Things you can do a good amount of, but in the end, you do it for work.
  - Chores: You *only* do it for work, and you actively try to minimize doing these as much as possible.
- From the top bucket (enjoyment bucket), try to craft your work life around that.

Related resources about soul searching and find your own path:
- ["I feel like senior engineers tend to focus on a specific area. How can I pick a specialization that's still relevant in 5-10 years?"](https://www.jointaro.com/question/xFEhcvfbJ2P0pYzZ4r6f/i-feel-like-senior-engineers-tend-to-focus-on-a-specific-area-how-can-i-pick-a-specialization-thats-still-relevant-in-5-10-years/)
- [[Masterclass] How To Choose A Good Company And Team As A Software Engineer](https://www.jointaro.com/lesson/0WEmTNZOMIh8xAdfO3JH/masterclass-how-to-choose-a-good-company-and-team-as-a-software-engineer/)

Voicing Your Problems And Frustrations Productively

Which of these are important things to remember as you are voicing your problems and frustrations?

Is the following a good way to voice a problem: I really hate how John thinks about the product. His vision does not make sense, and it will drag down the team. You can tell that he does not have enough experience.

"I really hate how John thinks about the product. His vision does not make sense, and it will drag down the team. You can tell that he does not have enough experience." - What is wrong with how this frustration is presented?

Effective communication of concerns in a one-on-one, especially with a manager, hinges on emotional intelligence and thoughtful phrasing. Expressing discontent is important, but how it’s framed can determine whether it leads to meaningful change or defensiveness.

- **Words and tone matter deeply**: It’s not about suppressing feelings, but about communicating them in a way that leads to constructive outcomes. Saying “This is holding me back” is more impactful than “I hate this person/project/org.”
- **Start with your experience**: Begin by describing how a situation makes *you* feel and the impact it's having on your work. This avoids sounding accusatory and centers the conversation on outcomes.
- **Avoid blaming language**: Statements that target others personally are rarely received well. Instead, focus on issues and processes rather than individuals.
- **Propose solutions thoughtfully**: Even if unsure, suggesting possible paths forward shows initiative. Phrasing like “One thing I was thinking about…” or “Could we try…” keeps the conversation collaborative and open-ended.
- **Frame feedback to enable support**: Managers are more able to help when you present challenges clearly and offer context. Productive expression of frustration builds trust and often leads to faster resolution.

By being candid *and* constructive, you increase the likelihood of being heard, supported, and ultimately driving the change you seek.

Engineer Your Ideal Tech Career [Part 4] - What Type Of Environment Are You In?

In this video, we walk through the different environments you can or may be working in throughout your career. Depending on where you feel you most thrive, it may make some roles or companies more or less fulfilling.

Avoid choosing the middle number for each of these — do the hard work of making actual trade-offs for each option to make your preferences clearer.

We cover key environments and what they mean, like:

- Fast Paced vs. Methodical
- Job Stability & Cash Comp vs. High Risk, High Reward
- Mentorship & Guidance vs. Independence & Autonomy

Looking for mentorship from tech’s top engineers + personalized job hunt assistance and interview prep? [Formation.dev](http://Formation.dev) can provide you unlimited career coaching, technical mentorship, personalized practice, and mock interviews. Join us here: <https://formation.dev/partners/taro>

Worksheet: [Formation - Coding Your Career](https://firebasestorage.googleapis.com/v0/b/tech-career-growth.appspot.com/o/courses%2Fslides%2FFormation%20Career%20Direction%20Worksheet.pdf?alt=media&token=f6344b78-529a-411e-a449-7a34a8d55fc8)

Maximize Your Productivity As A Software Engineer [Part 18] - Procrastination

We all learn how to procrastinate in school - It feels good to wait until the last minute to get something done as this means you got to use all that initial time to have fun! This lesson teaches you:

- Why people procrastinate
- The main tactic to apply to avoid procrastination
- What to do if you simply can't stop procrastinating

Your Great Engineering Manager Will Eventually Leave You 🥺

Even when a highly capable and supportive engineering manager is found, the relationship often has a built-in expiration date. This video explains why strong EMs tend to move up quickly and what that means for their reports. Here are the core points from the lesson:

- **Great EMs focus on long-term growth**: A strong manager prioritizes their engineers' success, fostering an environment that supports both team and individual development.
- **Fast career growth is common for top EMs**: Exceptional managers are often promoted quickly, typically within 1–2 years, due to their high impact and leadership abilities.
- **Promotion changes reporting structure**: When promoted to senior engineering manager, EMs typically move from directly managing engineers to managing other managers, altering team dynamics.
- **ICs often lose direct access**: Most engineers will start reporting to a new manager, while their original EM becomes a “skip-level” manager—only senior ICs may continue reporting directly.
- **Disruption of strong relationships**: The transition can be disheartening for ICs who thrived under the original EM, especially when that connection was key to their growth.

Write A Stellar Resume As A Software Engineer [Part 17] - Projects

In this day and age, 99% of software engineers have a "Projects" section on their resume. Of those engineers, 90%+ of them won't get any benefit from their "Projects" section when it comes to their resume passing the recruiter screen and getting them an interview. This lesson teaches you:

- Why projects are at a natural disadvantage compared to work experience on your resume
- What it takes to make a personal project actually impressive on your resume
- The proper link to include to show your project
- How to make a project GitHub actually have the chance to impress a recruiter and get you an interview

To get more users on your side project: ["\[Side Project\] How to get more users + interviews?"](https://www.jointaro.com/question/Z456XTkusKszxcHjVfYA/side-project-how-to-get-more-users-interviews/)

Part 1 [RBP] Exploring Modern React Frameworks + Setup

This lesson covers setting up a new React project using best practices. It discusses choosing the right framework, emphasizing the benefits of Next.js for its full-stack capabilities and features like routing and image optimization. The lesson also touches on the importance of TypeScript and ESLint for code quality and maintainability, and introduces the App Router as the modern approach to structuring Next.js applications.

- Florian’s free web development playlist on YouTube: <https://www.youtube.com/playlist?list=PLrnPJCHvNZuDG6BWjUFVxeWyYlve_SVJO>
- Code link: <https://github.com/codinginflow/react-best-practices/branches/stale>

Tech Career Growth Videos

Our instructional videos provide software engineers with insights needed for career growth. Masterclasses go incredibly in-depth on a specific tech topic while case studies are real examples from established engineering leaders.