Top Paying Tech Companies by SWE Level
As a FAANG engineer going on 9 years now, let me address the usual rebuttals:<p>- There is a selection bias. Nope, this is pretty much accurate.<p>- These aren&#x27;t real. Yes, yes they are.<p>- Self-reporters are lying. Maybe some do but these numbers are pretty accurate. If anything, I question Lyft and Airbnb as such outliers. I wonder if this factored in Lyft&#x27;s post-IPO stock performance and makes unrealistic valuations of Airbnb&#x27;s RSUs&#x2F;options. But for any listed company, these numbers are accurate.<p>- You have to work incredibly hard for this compensation. no, you don&#x27;t. In fact you&#x27;ll typically find significantly better work-life balance at a FAANG than a startup.<p>- These numbers are inflated by years of stock growth that is unlikely to continue in the future. This there is some truth to but not as much as people claim. Amazon, of all these companies, builds in expected stock growth into their initial grant valuation (which I think is total BS; if any Amazon recruiters are reading this, please stop). But I know what offers new hires can get pretty accurately so at current stock prices as a new hire these numbers pare pretty accurate.<p>- Newer offers are likely to be less. False. If anything, initial offers continue just climbing such that anyone who is interested in maximizing their compensation should probably move companies every 3-4 years, especially 4 if you don&#x27;t get an additional grant after your initial grant has fully vested.<p>There are some things to be aware of though and these can make it nontrivial to compare competing offers. Some examples:<p>- Most FAANGs have a 25&#x2F;25&#x2F;25&#x2F;25 vesting schedule. Amazon does not. It&#x27;s vesting schedule is 5&#x2F;15&#x2F;40&#x2F;40 with a vesting signing bonus in the first 2 years to (partially) compensate for this.<p>- Amazon, as noted earlier, assumes stock price growth in their offer.<p>- Amazon (noticing a trend?) has vesting on 401k matches that can take 2-3 years. Most FAANGs do not.<p>- Anything less than a 50% 401k match is below market.<p>- Some FAANGs have caps on 401k matches. Some don&#x27;t.<p>- I think the most generous 401k match I&#x27;ve seen is Google&#x27;s at 50% of your contribution with no cap or vesting period or 100% of the first $3,000 at year&#x27;s end, whichever is higher. The really nice thing is because there&#x27;s no cap you get it immediately. It&#x27;s fairly common to get your bonus in January, put it all in your 401k, get your 50% match and you&#x27;re done for the year.<p>- Some offer the ability to make contributions into after tax 401k (Google &quot;mega backdoor Roth&quot; if you&#x27;re interested in this). This is potentially huge beneficial. You can use it to invest money you can withdraw at any time at no penalty but the investment returns are tax free. If you withdraw the returns (not the initial investment) prior to being aged 59.5 you pay taxes plus a 10% penalty, however.<p>- Vacation days vary but 4 weeks (20 days) should be considered the norm for the US (30 for Europe&#x2F;Australia).<p>- Some companies (eg Google) start you on less vacation days but you get more with length of service.<p>- Unlimited time off is bullshit. Think of this as no time off.<p>- Health insurance can differ but I imagine pretty much all FAANGs at this point have good health insurance. The gold standard is probably Kaiser for CA residents.<p>- Some FAANGs have a 1 year cliff. Some do not (eg Google, FB).<p>- Vesting schedules can vary. Some are monthly, some every 3 months, some annually. Try to avoid anything less frequent than once every 3 months. It can create bad incentives for the company to get rid of you before a big vest date.<p>- FAANGs will give you performance-based RSU grants annually. The time of year can vary. The eligibility can vary. For example, Google gives you a refresh grant at, after Q2-Q3 calibration (based on your previous two halves). And I believe in recent years it changed that if you joined that calendar year you aren&#x27;t eligible.<p>- Because of refresh grants and your initial grant running in tandem, years 2-4 can often be your most lucrative. If you don&#x27;t get promoted or an additional grant you can get significantly less compensation in year 5. Why these companies let people leave because they won&#x27;t give them additional equity rather than competing for a new hire is beyond me. But they do.<p>- Because of the inflation in initial offers, a new hire  can often have a significantly better offer than someone who joined 3 years prior. The veteran may only have higher total compensation because of refresh grants and&#x2F;or stock growth.<p>- FAANGs tightly control salary within bands for a given level. Going beyond this is unlikely to happen however there is FAR more movement on RSUs in an initial offer and&#x2F;or signing bonus.<p>So this is all another reason of why from a financial POV working for a startup is--how should I put this?--suboptimal. Your equity is probably worth nothing (even if you get acquihired, liquidation preferences probably mean all non-founder stock is worth $0). The hours are worse. The benefits are worse. There may be reasons to do this that aren&#x27;t financial (as a non-founder) but personally I&#x27;d suggest people use their most productive years to ensure their financial independence and then chase whatever moonshot tickles your fancy without the pressure of having to pay for food.