You have two job offers. Company A pays $180,000 base. Company B pays $160,000. Which is better?

If you chose A without more information, you may have just made a six-figure mistake. Total compensation in tech extends far beyond base salary, and the non-salary components often determine which offer is actually worth more—and which job will serve your career better over the next 3–5 years.

Here is a systematic framework for evaluating the complete picture.

The Total Compensation Stack

Every tech job offer consists of layers. Here is how to evaluate each one:

Base Salary

The most visible number and the easiest to compare. Base salary is guaranteed, predictable, and forms the foundation for future raises, bonus calculations, and retirement contributions.

How to evaluate: Benchmark against your market. Use our salary insights directory to check whether the base is competitive for your role, level, and city. A base salary at or above the 50th percentile for your market is fair. Below the 25th percentile is a red flag unless other components compensate heavily.

Equity (RSUs, Stock Options, ISOs)

Equity is where offers diverge most dramatically. At a public tech company, an RSU grant of $200,000 vesting over four years adds $50,000/year in guaranteed income (you can sell shares as they vest). At a pre-IPO startup, a similar grant on paper could be worth $0 or $2 million—the uncertainty is enormous.

How to evaluate:

  • Public company RSUs: Treat as cash. Use the current stock price multiplied by the number of shares. Divide by the vesting period (typically 4 years) for annual value.
  • Late-stage startup equity: Apply a 50–70% discount to the latest valuation for realistic benchmarking. Ask about secondary market sales options.
  • Early-stage startup equity: The expected value is very low. Treat as lottery tickets, not compensation. Do not accept a below-market base salary in exchange for early-stage options unless you genuinely believe in the company.

Signing Bonus

A one-time payment, typically paid within the first month or split across the first year. Signing bonuses range from $10,000 to $100,000+ at senior levels and are often the most negotiable component of an offer.

How to evaluate: Divide by the number of years you expect to stay. A $50,000 signing bonus amortized over 3 years is roughly $16,700/year in additional compensation. Factor this into your annual TC comparison, but give it less weight than recurring components.

Annual Bonus

Typically expressed as a percentage of base salary (e.g., "15% target bonus"). Actual payout depends on individual and company performance. In practice, most tech companies pay 80–120% of target in a normal year.

How to evaluate: Use the target percentage at 100% payout for comparison. Be skeptical of companies that compensate a low base with a high bonus target—a 30% bonus target that pays out at 60% is worse than a 15% target that consistently pays 100%.

Benefits Package

Benefits can add $15,000–$40,000 in annual value. The components that matter most:

  • Health insurance: What is the employer's premium contribution? What are deductibles and out-of-pocket maximums? For a family plan, the difference between a good and bad health plan can be $5,000–$15,000/year.
  • 401(k) / pension match: A 4% match on a $180,000 salary is $7,200/year in free money. Some companies match up to 6% or even offer mega-backdoor Roth options.
  • PTO policy: Compare actual days, not policies. "Unlimited PTO" often results in employees taking fewer days than a defined 20-day policy.
  • Parental leave: Ranges from 0 to 26 weeks paid in the US. If you are planning a family, this benefit can be worth $20,000–$60,000.

Beyond the Numbers: Career Value

Growth Trajectory

The best offer is not always the highest-paying one today—it is the one that positions you for the highest earnings over the next 5–10 years.

Consider:

  • Promotion velocity: How quickly do people advance? Ask the hiring manager about the typical timeline from your offered level to the next level. At some companies, L4 to L5 takes 18 months. At others, it takes 4 years.
  • Technical learning: Will you work with cutting-edge technology, mentor under experienced engineers, and tackle problems that stretch your skills? A year of meaningful growth can be worth more than a $20,000 salary premium.
  • Brand value on your resume: Working at a top-tier company for 2–3 years can increase your market value by 20–40% for subsequent roles. This is especially true for early-career engineers.

Company Stability

A $200,000 offer from a startup with 12 months of runway is worth less than a $170,000 offer from a profitable company. Ask:

  • What is the company's financial position? (Revenue growth, profitability, cash reserves)
  • When was the last layoff? What triggered it?
  • What is the voluntary attrition rate on the engineering team?

Work-Life Balance

This is hard to quantify but easy to discover:

  • Ask about on-call rotations. Frequency and severity vary enormously.
  • Ask current employees (via LinkedIn or Blind) about typical work hours and weekend expectations.
  • Check Glassdoor reviews specifically for work-life balance ratings on the engineering team.

A role that demands 55 hours/week at $200,000 pays an effective hourly rate of $70. A role at $170,000 with 40-hour weeks pays $82/hour. The "lower paying" job is actually better compensated per unit of your time.

Manager Quality

Your direct manager has more impact on your day-to-day experience and career trajectory than almost any other factor. During the interview process:

  • Ask to meet your potential manager
  • Ask them how they approach performance reviews, growth conversations, and handling disagreements
  • Ask team members what they appreciate about the team leadership

A great manager at a good company beats a mediocre manager at a great company.

The Comparison Framework

When comparing two or more offers, create a simple spreadsheet:

| Component | Offer A | Offer B | |---|---|---| | Base salary | $180,000 | $160,000 | | Annual equity value | $30,000 | $60,000 | | Target bonus | $18,000 (10%) | $24,000 (15%) | | Signing bonus (annualized) | $10,000 | $25,000 | | 401(k) match value | $7,200 | $9,600 | | Healthcare value | $12,000 | $15,000 | | Annual TC | $257,200 | $293,600 |

In this example, the offer with $20,000 lower base salary is actually worth $36,400 more annually. This happens frequently—and it is why evaluating base salary alone is a mistake.

Location Matters

If offers are in different cities, adjust for cost of living and taxes. A $250,000 TC offer in San Francisco provides roughly the same purchasing power as $180,000 in Austin or GBP 120,000 in London. Our city comparison tools can help you run these calculations.

The Decision

Once you have quantified everything, the choice usually becomes clear. But if two offers are within 10% of each other on total compensation, let the qualitative factors—growth potential, manager quality, team culture, and personal fulfillment—break the tie.

The highest-paying job is not always the best job. But the best job almost always pays well when you count everything.

Benchmark any offer against market rates using our salary insights directory.