Understanding your total compensation is crucial when evaluating a job offer, especially in the high-tech industry. Compensation packages often include not just base salary but also bonuses, benefits, and equity. The two primary components of total compensation that often require careful consideration are cash (salary and

bonuses) and equity (stock …

As a software engineer working remotely while traveling the world, managing your finances effectively is crucial. One powerful tool that can help you build substantial tax-free retirement savings is the Mega Backdoor Roth. This blog post will explain what a Mega Backdoor Roth is, how it works, and how you …

Restricted stock units (RSUs) are a type of equity compensation that is often offered to software engineers. RSUs give employees the right to own shares of company stock, but there are certain restrictions on when and how the shares can be claimed.

How do RSUs work?

When an employee is …

Phantom stock is a type of equity compensation that gives employees the right to share in the appreciation of a company's stock without actually owning any shares. It is often used by startups and other companies that do not yet have publicly traded stock.

Phantom stock can be a valuable …

FAANG companies typically use a few different compensation zones, including:

• San Francisco Bay Area: This is the highest-paying compensation zone, with salaries that are significantly higher than in other areas. This is due to the high cost of living in the Bay Area.
• New York City: This is another high-paying …

There are a number of factors that employers should consider when determining compensation zones, including:

• Cost of living: The cost of living is one of the most important factors that employers should consider when determining compensation zones. This is because the cost of living varies significantly from one area to …

Compensation zones are geographic areas that have been designated by employers as having different salary ranges for similar positions. These zones are typically based on factors such as cost of living, local market conditions, and the availability of talent.

For example, a company might have a compensation zone for the …

Restricted stock is a form of equity compensation that is often offered to software engineers. It is a way for companies to attract and retain top talent by giving them a stake in the company's success.

What is restricted stock?

Restricted stock is stock that is granted to employees but …

A 401(k) is a retirement savings plan that allows employees to save money from their paychecks on a tax-deferred basis. A Roth 401(k) is a variation of the 401(k) plan that allows employees to make contributions after-tax.

Both 401(k)s and Roth 401(k)s offer …

Stock options are a form of equity compensation that companies offer to their employees. They give employees the right to buy a certain number of shares of the company's stock at a predetermined price. The price is typically set at a discount to the current market price.

Stock options can …