Say it like this
- What is your total compensation package?
- The total compensation for this role is competitive.
- Our total compensation includes equity and benefits.
Use it at work
Offers
- What's the total compensation, including equity?
- The total compensation is $180K.
Comparing
- The salary is lower, but total compensation is higher.
- Let's compare total compensation, not just base salary.
Negotiating
- Can we increase total compensation with more RSUs?
- I'm looking for total compensation around this range.
Don't say this
Total compensation must include all benefits, not just base salary.
Don't mix it up
| Term | What it is | Who writes or uses it | When |
|---|---|---|---|
| total compensation | Salary plus bonus, equity and benefits | HR, recruiters | Offers |
| base salary | Fixed yearly pay | HR | Offers |
Practice
Try it
4 quick exercises
1. You are discussing your earnings with a colleague. Which sounds most professional?
2. When comparing offers, you should always look at the _______ rather than just the base salary.
3. Which sentence uses 'total compensation' incorrectly?
4. Rewrite using 'total compensation': 'When you add up the base salary, the bonus they give you, and the stock options, what is the full amount you earn?'
Say it out loud
Phrase 1 of 3
"What is your total compensation package?"
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More about total compensation
Real examples(3)
- in a recruiter call
"Your total compensation will be $150,000 base salary plus $50,000 in annual bonus and stock options."
- in a salary negotiation
"I want to discuss my total compensation, not just my base salary, because the equity component is significant."
- in a team meeting
"The company publishes total compensation data to show how our earnings compare to industry standards."
More mistakes(2)
Handle with care. Often confused with salary alone; total compensation includes salary plus all other benefits and monetary perks. Do not use it to refer only to base pay.
- ✕The job only offers total compensation.✓The job offer includes total compensation of $180,000.
Total compensation is not a standalone offering; you receive compensation, not offer it.
- ✕I want to increase my total compensation by 10%.✓I want to increase my base salary or total compensation by 10%.
Be specific about which component you want increased, as total compensation can be adjusted in multiple ways.
Other forms(3)
- total compensation noun
"The total compensation for senior engineers at this company is excellent."
- total compensation package noun phrase
"We reviewed the total compensation package before accepting the offer."
- total-compensation adjective
"The total-compensation structure varies by level and role."
Often used with(5)
- total compensation package · Used to emphasize the complete, bundled offering of all financial benefits together.
- calculate total compensation · To add up all salary, bonus, and equity components to arrive at the true earning figure.
- total compensation breakdown · A detailed explanation showing how the total is composed of different components.
- competitive total compensation · Compensation that meets or exceeds industry market rates for similar roles.
- total compensation review · A formal assessment of an employee's full compensation package, often done annually.
Similar words(3)
- compensation package · Slightly less formal but means the same thing; package emphasizes the bundled nature.
- total pay · More casual alternative, commonly used in informal conversations.
- all-in compensation · Emphasizes that everything is included; particularly common in startup and tech contexts.
Opposites(2)
- base salary
- salary alone
Questions(5)
- What is included in total compensation?
- Total compensation includes your base salary, annual bonuses, stock options or restricted stock units (RSUs), signing bonuses, relocation assistance, health insurance, retirement contributions (such as 401k matching), and other financial perks. In tech, equity is often a major component.
- Why is total compensation important in tech?
- In tech companies, equity can represent 30-60% of your total compensation, making it crucial to understand the full picture. A company might offer a lower base salary but substantial stock options, making the true earning potential much higher than the base salary alone suggests.
- How do you calculate total compensation?
- Add your base salary plus annual bonus plus the annual value of your equity (grant divided by vesting period) plus the monetary value of major benefits. For example: $120,000 base + $20,000 bonus + $40,000 equity value + $5,000 benefits = $185,000 total compensation.
- Is total compensation the same as salary?
- No. Salary typically refers to base salary only, whereas total compensation includes salary plus all other financial benefits and equity. Always clarify which one you are discussing in negotiations.
- How do you use total compensation in job negotiations?
- Instead of negotiating salary alone, discuss total compensation to increase your leverage. You can negotiate base salary, bonus percentage, equity grants, or other benefits as a package to reach your target total compensation.
