AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Understanding Total Compensation: Look Beyond the Base Salary
Recognizing the components of total compensation is crucial for assessing affordability. It is a common mistake to react solely to the total compensation figure without considering its breakdown. For instance, a reported salary of $200,000 may consist of a base salary of $80,000 complemented by variable bonuses, equity, and other incentives. This highlights the importance of a comprehensive understanding of compensation structures to make informed financial decisions.