U.S. Salary & Compensation Guide: Base, Bonus, Equity and Benefits
Base, bonus, LTI, sign-on, sales comp, pay transparency and exempt status.
| Component | What it is | What to ask |
|---|---|---|
| Base salary | Fixed annual gross pay, paid bi-weekly or semi-monthly. No 13th or 14th month. | Where does the offer sit in the band? When is the next review? |
| Short-term incentive | Annual bonus, usually a target % of base (often 20% to 100%+ at senior levels), tied to company and individual goals. | What were actual payouts in the last 3 years? Is year one pro-rated or guaranteed? |
| Long-term incentive | Equity (RSUs, PSUs, options) or cash LTI vesting over 3 to 4 years. Often the largest part of senior pay. | Grant value, vesting schedule, refresh grants, what happens on a sale. |
| Sign-on & make-whole | Cash or equity to compensate for bonus or unvested equity you forfeit by leaving. | Is there a clawback if you leave within 12 to 24 months? |
| Sales compensation | Base plus commission (common 50/50 or 60/40 splits), quotas, accelerators and caps. | Quota attainment of the current team, draw during ramp-up, territory. |
| Perquisites | Car allowance, executive physicals, financial and tax planning, club memberships, travel class. | Which are taxable to you, and is there a gross-up? |
Pay transparency & salary history
Salary ranges must appear in job postings in California, Colorado, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New York, Vermont, Washington and Washington D.C., plus several Ohio cities; Delaware follows in 2027. Many states and cities also ban employers from asking about your salary history. You can decline to share it and focus on your expectations.
Exempt or non-exempt?
Federally, exempt employees must earn at least $684 a week (the higher 2024 rule was struck down), with a "highly compensated" test at $107,432 a year. States such as California, New York and Washington set much higher thresholds. Most senior roles are exempt: no overtime, but more flexibility.
How-to guides
How toNegotiate a senior offer
- Don't negotiate piece by piece. Collect the full offer first: base, bonus, equity, sign-on, benefits, title, start date.
- Know your walk-away number and your target total compensation, including the value of what you forfeit by leaving.
- Prioritize 2 or 3 asks with a clear rationale (market data, competing offer, forfeited bonus or equity).
- Ask for non-cash items that cost the company less: title, reporting line, severance, equity acceleration, remote days, relocation.
- Let your Cygic recruiter carry difficult messages. It protects your relationship with your future manager.
- Get everything in writing before you resign.
How toCompare two offers side by side
- Convert everything to annual total compensation: base + target bonus + annualized equity value + sign-on (amortized).
- Subtract the employee cost of health insurance and add the employer 401(k) match.
- Adjust for state and city taxes and cost of living.
- Weigh risk: public vs. private equity, company stage, bonus payout history.
- Then weigh the non-financial factors: scope, team, manager, growth and flexibility.
How toAnswer "What are your salary expectations?"
- In pay transparency states, ask for the approved range first.
- You don't have to share your current salary; many states forbid employers from asking.
- Give a total-compensation range anchored on market data and the scope of the role, with your target in the lower part of your range.
- Say you are flexible on the mix of base, bonus and equity. It keeps the conversation open.
Frequently asked questions
How are U.S. salaries quoted?
As an annual gross base salary in U.S. dollars, usually paid in 24 or 26 installments. There is no thirteenth or fourteenth month: bonus, commission and equity are stated separately.
Can an employer ask for my current salary?
In many states and cities, including California, New York, New Jersey, Illinois and Massachusetts, employers may not ask about salary history, and a growing number must publish a pay range in job postings.
What should I compare between two offers?
Total compensation: base salary, target bonus, equity, the employer's 401(k) match, health insurance premiums and deductibles, paid time off and any sign-on bonus.
Official sources
- BLS: Occupational Employment and Wage Statistics
- U.S. Department of Labor: Wage and Hour Division
- CareerOneStop: Salary Finder
General information, not legal, tax or immigration advice. Rules change often: check the official sources and speak with a qualified professional.
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Information reviewed September 2026. General information only, not legal, immigration, tax or financial advice. Laws change frequently and vary by state and personal situation; consult qualified professionals.