Learn to state, compare, and negotiate compensation numbers confidently — base salary, RSUs, bonuses, and total comp. {TOTAL} exercises.
0 / 5 completed
1 / 5
You receive an offer from a US company. The recruiter says:
"The base salary is $145,000. On top of that, there's a 15% annual performance bonus target, $40,000 in RSUs vesting over 4 years, and a $10,000 sign-on bonus."
How much is the total compensation (TC) in the first year?
Option D is correct: • Base: $145,000 • Target bonus: 15% × $145,000 = $21,750 • RSUs: $40,000 total over 4 years = $10,000/year (assuming equal annual vesting) • Sign-on: $10,000 (one-time, first year only) • Year 1 TC: $145,000 + $21,750 + $10,000 + $10,000 = $186,750
Why option B is slightly off: It writes "$10,000 RSUs (first-year vest)" but then also adds the sign-on separately, overcounting. The distinction: RSUs vest throughout the year, so Year 1 = $40,000 ÷ 4 = $10,000.
Key compensation vocabulary: • base salary — the fixed annual amount paid regardless of performance • target bonus — an on-target earnings bonus assuming 100% performance; actual payout may vary • RSU (Restricted Stock Unit) — company stock granted to you, released ("vesting") over a schedule (e.g. 4-year cliff or monthly) • vesting schedule — the timeline over which RSUs or options become yours to keep • sign-on bonus — a one-time payment made when you join; often with a clawback clause (repay if you leave within 1–2 years) • total compensation (TC) — everything combined: base + bonus + equity + benefits
Key phrase: "What is the total comp including equity?" or "Can you break down the TC?"
2 / 5
In a salary negotiation, you want to ask for more money. Which phrasing is most professional and effective?
Option C is most effective because it: 1. Opens with appreciation (positive framing) 2. Justifies the counter-offer with evidence ("my research and experience") 3. States a specific range rather than a vague request 4. Uses "I was expecting" — softer than "I want" or "I need" 5. Ends with a question that invites dialogue: "Is there flexibility...?"
Why the others are weaker: • A: Confrontational — "too low" and "I need" are blunt • B: "Can you do better?" is informal and puts pressure without giving context • D: Leads with "I deserve" — comes across as entitled; experience alone is not the full argument
Useful negotiation phrases: • "I was expecting something in the range of X to Y." • "Is there any flexibility on the base salary?" • "I'm very interested in the role — I'd love to find a number that works for both sides." • "Could we revisit the sign-on to bridge the gap?" • "I have a competing offer at $X — could you match or come close?"
Tone tip: Always negotiate in writing when possible — email lets you be precise and polished without the pressure of a real-time call.
3 / 5
Your manager asks you to compare two job offers in a meeting. You say:
"Offer A has a higher base — $150K versus $135K. But Offer B has a better equity package: $80,000 in RSUs over 4 years compared to $20,000. If we assume both companies perform similarly, Offer B's total four-year compensation is higher by approximately $40,000."
Is this analysis correct?
Let's calculate properly:
Offer A (4-year total): $150,000 × 4 = $600,000 base + $20,000 RSUs = $620,000
Offer B (4-year total): $135,000 × 4 = $540,000 base + $80,000 RSUs = $620,000
They are equal at $620,000 over 4 years (ignoring bonuses and benefits). The statement "Offer B is higher by $40,000" is incorrect — it appears to be a calculation error.
What matters beyond the numbers: • Liquidity of equity — RSUs at a public company are liquid; at a startup, they may be worthless or locked up • Vesting cliff — many RSU packages have a 1-year cliff (you get nothing if you leave before 12 months) • Base salary anchors future raises — a higher base compounds over time, while RSUs are not always renewed • 401(k) match, health benefits — can be worth $10,000–$30,000/year in value
Key vocabulary for offer comparisons: • total four-year compensation — the standard comparison window at tech companies • equity liquidity — how easily you can convert equity to cash • vesting cliff — a period before any equity vests (typically 1 year) • refresh grants — additional RSU grants given annually as a retention mechanism
4 / 5
You're asking your current employer for a raise. Which opening is most professional?
Option C is most effective because it: 1. Opens calmly and professionally: "I'd like to discuss my compensation" 2. Provides concrete accomplishments with measurable results (Kubernetes migration, 60% deployment improvement, mentoring) 3. Anchors the request to market data: "current market rates" 4. Uses neutral phrasing: "salary adjustment" rather than "raise" — sounds more business-like
Why option D is risky: Using a competing offer as leverage is common, but opening with it as a threat ("you need to") is confrontational. A better version: "I've been approached by other companies at market rates of $X — I'd prefer to stay, but I need our compensation to be competitive."
Structuring a raise request: 1. Request a formal meeting or block time on the calendar 2. State your accomplishments (quantified where possible) 3. Reference market data (e.g. Glassdoor, Levels.fyi, LinkedIn Salary) 4. State the specific number or range you're asking for 5. Leave room for negotiation: "I'd appreciate any increase you can offer within that range"
Useful phrases for raise conversations: • "I'd like to discuss my compensation in light of my recent contributions." • "Based on current market data for my role and level, I'm targeting a base of $X." • "I'm committed to this team — I just want our agreement to reflect my current scope."
5 / 5
A recruiter asks: "What are your salary expectations?"
Which response is most effective for a senior software engineer role?
Option D is most effective because it: 1. Anchors the conversation with a specific range — this is better than saying "flexible" (which weakens your position) or refusing to answer (which can frustrate recruiters) 2. Justifies the range with "based on my research and the scope of this role" 3. Includes "total compensation including equity and bonus" — ensures the recruiter knows you're thinking holistically 4. Ends with openness: "I'm open to discussing the full package" signals flexibility without undercutting your anchor
Why option A is weak: "Whatever you think is fair" sounds passive and gives away your negotiating power. Companies have a range; if you don't anchor, they'll offer the bottom.
Why option C is a common mistake: Anchoring to your previous salary can accidentally undersell you (especially if you were underpaid) or reveal information you don't need to share. Many jurisdictions have laws preventing companies from asking about past salary for this reason.
Preparation tips: • Research market rates before the call: Levels.fyi (for big tech), Glassdoor, LinkedIn Salary, Blind • Know your target number and your walk-away number before negotiating • State a range where your target is the lower bound — not the midpoint
Useful phrases: • "I'm targeting a base of X–Y for this level and location." • "I'm open to discussing the total package, including equity and benefits." • "Could you share the budgeted range for this role so we can calibrate?"