Non-Salary Components of the Offer

An offer is more than just the salary. It may also include the following:

• Bonus or Profit Sharing plan
• Stock Options
• Discounted Stock Plan / ESOP (Employee Stock Ownership Plan)
• 401K with matching employer contribution
• Medical Insurance
• Dental Insurance
• Vision Coverage
• Relocation
• Vacation
• Holidays & Floating Holidays
• Sick Leave / PTO
• Educational Reimbursement / Training
• Gym / Health Club benefits
• Free or discounted meals
• Commuting allowance or discount

A few of these items may seem frivolous, but others are significant and merit additional attention. Don’t be afraid to ask HR for more detail before you accept an offer.

For instance, regarding the Profit Sharing or Bonus, you might want to know the following:

• When the bonus is paid? Is the payout fixed or is it variable?
• Is payout based on individual or company performance?
• What is the historical payout rate?

Likewise, you should get details about the stock option plan if they have one:

• The total # of shares - and for a startup, the % ownership the stocks represent
• The vesting schedule for the options (typically 4 years)
• Any selling restrictions (e.g., a “freeze period” after an IPO).

For a 401K, you should look at the following:

• What percentage of your contributions will the company match, if any? Some companies will contribute a certain amount even if you don’t’ contribute anything.
• What is the vesting schedule for the company’s match?
• What is the maximum % of your pay you can put into a 401K? Some companies limit this to 10% or so.