Understanding the offer
The anatomy of a tech offer
Most tech offers have four components. Most people only negotiate one of them — base salary. But the other three often represent 30–60% of your total annual value and are frequently more negotiable than base.
| Component | Typical range | Negotiability | Notes |
|---|---|---|---|
| Base salary | $90K–$300K+ | High | Hardest to move at large companies due to internal pay bands |
| Annual bonus | 5–25% of base | Medium | Often a fixed % by level, but target % can sometimes be adjusted |
| Equity / RSUs | $20K–$500K+ / 4yr | High | Most negotiable element, especially at growth-stage companies |
| Signing bonus | $5K–$100K+ | Very high | One-time, often approved when base is capped. Always ask. |
Equity explained
How to value RSUs in a job offer
RSUs (Restricted Stock Units) are the most common form of equity in tech. They're grants of company stock that vest over time — typically over 4 years with a 1-year cliff. Here's how to calculate what they're actually worth to you annually:
RSU annual value formula:
(Total grant value ÷ 4 years) = annualized RSU value
Example: $200,000 RSU grant over 4 years = $50,000/year at current stock price.
For private companies, apply a 50–80% discount to the stated value. Private equity may never become liquid, and valuations can change dramatically before an IPO.
FAANG / large public company RSUs
At companies like Google, Meta, Apple, Amazon, and Microsoft — RSUs vest quarterly after the cliff and are worth exactly their stated value (current stock price × number of shares). These are highly negotiable. A typical counter offer at this level is asking for 10–30% more equity on top of the initial grant.
Startup and pre-IPO equity
Pre-IPO options or equity grants require more due diligence. Key questions to ask: What is the current valuation and preference stack? What was the last 409A valuation? What is the strike price for options? Has the company taken any down rounds? What are the exercise window terms if you leave?
Negotiation strategy
How to negotiate a tech offer step by step
01
Always compare total comp, not base
Use our total comp calculator to compare two offers side-by-side including equity, bonus, and benefits before deciding which is higher.
02
Get competing offers if you can
A competing offer is the strongest possible leverage in tech negotiations. Even an offer from a company you'd never join moves the number.
03
Ask for equity first, base second
At large tech companies, equity grants are often more flexible than base salary because they don't affect internal pay bands or future raise calculations.
04
Always ask for a signing bonus
Signing bonuses are one-time payments that don't affect ongoing compensation bands. They're approved more easily and companies often have discretionary budget for them.
05
Negotiate the equity refresh too
After the initial grant, annual refresh grants keep your equity fresh. At offer stage, ask: "What does the annual refresh grant typically look like for this level?"
06
Check the vesting cliff carefully
Most tech companies have a 1-year cliff — you vest nothing until month 12. If you're currently unvested elsewhere, ask for a signing bonus to cover what you're walking away from.
FAANG vs. startup
Negotiation dynamics: FAANG vs. startup vs. scale-up
| Company type | Base flexibility | Equity flexibility | Best lever |
|---|---|---|---|
| FAANG / large tech | Low — strict pay bands | High — refresh grants | Equity grant + signing bonus |
| Growth-stage (Series B–D) | Medium-high | High — pre-IPO upside | Both — use competing offer |
| Early-stage startup | Low — cash constrained | Very high | Equity % and option terms |
| Enterprise / non-tech | High | Low / none | Base + bonus + signing |
Data from Levels.fyi: The median software engineer at a top-5 tech company negotiates their initial offer up by 12–18% when they have a competing offer. Without a competing offer, the average uplift is 6–9%. The single biggest leverage point in tech is timing multiple offers simultaneously.