[crazyeights777]

I was formerly confused by Google's compensation packages as well. I was focused on first year base salary and not aware of how raises, bonuses and stock packages play out.

My base salary has been higher than my classmates who joined FAANG since graduating ugrad. I jumped between non FAANG companies, they have been quite loyal. However,they are now clearly in a better financial position than myself.

1. FAANG compensates for institutional knowledge; engineers are rewarded for sticking around. my classmates that started at 100k USD 5 years ago, are now making ~175 base. They have gotten a 10% raise each year. 2. Performance bonuses. Not as common, for those who have a perf bonus the target is 15% of salary. 3. FAANG will give aggressive stock packages to engineers (which has real value from the get-go, unlike startup stock options) My classmates receive an annual stock package of 65-100% their salary.

This effectively bumps their 2018 compensation to between 225-300k USD. They are 5-6 years out of undergrad.

[skybrian]

Historically, stock appreciation made a big difference too. (Google doubled in the last five years and quadrupled in the last ten.) Though you can't count on that going forward.

[jarsin]

Sweet then you just need to save 50% of your total comp for 10 years to buy and pay for that very small $1 million fixer upper house.

[skybrian]

Mortgages exist.

[gnulinux]

And they create a lot of stress and anxiety for the individual.