Total compensation is the complete annual value of a job, not just the base salary printed on the offer letter. It includes base pay, target annual bonus (which may be 0–20% of base at many companies, or far higher in finance and sales), the annualized value of equity grants, and the dollar value of employer-paid benefits — chiefly the 401(k) match and the health insurance premium the employer covers on your behalf. Comparing two jobs on base salary alone is a common and costly mistake: a lower-base role with a generous RSU grant and a 6% 401(k) match can easily be worth $20,000–$40,000 more per year than a higher-base role with thin equity and no match.
RSUs (Restricted Stock Units) vest over a schedule — typically four years with a one-year cliff — and are taxed as ordinary income when they vest, not when they are granted. To value them fairly in a job comparison, divide the total grant by the number of vesting years and multiply by the current share price; that gives you the annual equity income at today's valuation. Severance packages generally scale with tenure: one to two weeks of pay per year of service is common, though some companies pay more. The severance calculator also factors in accrued but unused PTO (which must be paid out in most U.S. states) and any WARN Act notice-period pay if the company is conducting a mass layoff.
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How do I compare two job offers fairly?
Convert everything to an annual dollar figure. For each offer calculate: base + target bonus + annualized equity (grant divided by vesting years, multiplied by share price) + employer 401(k) match + employer health premium. Then compare the two totals. Also factor in non-cash items like remote-work flexibility, PTO, and career trajectory — but lead with the numbers so you are not fooled by a higher base that is offset by weak equity or no match.
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How are RSUs valued in an offer?
Take the total grant value, divide by the vesting period in years (typically four), and use the current share price for the calculation. RSUs vest as ordinary income, so you will owe income tax — federal, state, and FICA — on each tranche as it vests. At a public company this is relatively predictable; at a startup the shares may have no liquid market until an IPO or acquisition.
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Should I always counteroffer?
In most cases, yes. Politely and professionally asking for more is expected, and companies rarely rescind offers over a reasonable counter. Anchor your ask to market data (Levels.fyi, Glassdoor, Payscale, or LinkedIn Salary) and be specific — "Based on comparable roles in this market, I was expecting a base closer to $X" is more effective than a vague request for more. The downside risk is very low; the upside can be thousands of dollars per year compounded over your career.
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What affects my severance amount?
Standard severance is one to two weeks of base pay per year of service, though employer policies vary widely. Your package may also include: payout of accrued PTO (required in California and several other states), continuation of health benefits through the end of the month or via COBRA subsidy, accelerated vesting on equity, and WARN Act pay if the company triggered a qualifying layoff. Always get the full package in writing before signing a separation agreement.