Master compensation vocabulary: total comp, base salary, equity, cliff, vesting, bonus, and negotiation language.
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Total Compensation (TC) includes:
Total compensation (TC) is the full package: base salary + target bonus + equity (annualised) + benefits. Comparing TC across offers gives a more accurate picture than base salary alone.
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A 'cliff' in an equity grant means:
A one-year cliff means no equity vests in the first year — on the one-year anniversary, 25% vests immediately, then monthly or quarterly for the remaining 3 years.
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RSUs (Restricted Stock Units) differ from stock options in that:
RSUs vest as actual shares — you receive shares when vested. Options give the right to buy shares at the strike price; if the share price is below the strike, options are worthless.
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When negotiating a job offer, the phrase 'I have a competing offer' is used to:
A competing offer is legitimate negotiation leverage — it provides external market validation of your value and often prompts companies to improve their offer.
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In a hiring context, 'levelling' refers to:
Levelling maps a candidate's experience and skills to the company's career ladder (e.g., L4/L5/L6 or Senior/Staff/Principal) — determining scope, compensation band, and expectations.