total compensation
The full value of everything an employer provides in exchange for work — base salary, variable pay (bonus, commission), equity (stock options, RSUs), benefits (health, dental, 401k match), and other perks. Total comp is the right unit of comparison when evaluating a job offer, not just base salary. In venture-backed companies, equity can represent a significant portion of total comp that doesn't show up in the paycheck.
When you'd see it: Offer letters, compensation benchmarking, salary bands, candidate negotiation.
Why it matters: Most candidates compare base salary; most employers compete on total comp. Understanding all components lets both parties have an honest negotiation and lets employees make informed decisions.
Common mistakes: Treating unvested equity as certain value. Stock options and RSUs have conditions and may be worth nothing if the company doesn't exit or if you leave before vesting.
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