Salary & Compensation in English
Learn to state, compare, and negotiate compensation numbers confidently — base salary, RSUs, bonuses, and total comp. 5 exercises.
0 / 5
Exercise 1 of 5
You receive an offer from a US company. The recruiter says:
"The base salary is $145,000. On top of that, there's a 15% annual performance bonus target, $40,000 in RSUs vesting over 4 years, and a $10,000 sign-on bonus."
How much is the total compensation (TC) in the first year?
Option D is correct:
• Base: $145,000
• Target bonus: 15% × $145,000 = $21,750
• RSUs: $40,000 total over 4 years = $10,000/year (assuming equal annual vesting)
• Sign-on: $10,000 (one-time, first year only)
• Year 1 TC: $145,000 + $21,750 + $10,000 + $10,000 = $186,750
Why option B is slightly off:
It writes "$10,000 RSUs (first-year vest)" but then also adds the sign-on separately, overcounting. The distinction: RSUs vest throughout the year, so Year 1 = $40,000 ÷ 4 = $10,000.
Key compensation vocabulary:
• base salary — the fixed annual amount paid regardless of performance
• target bonus — an on-target earnings bonus assuming 100% performance; actual payout may vary
• RSU (Restricted Stock Unit) — company stock granted to you, released ("vesting") over a schedule (e.g. 4-year cliff or monthly)
• vesting schedule — the timeline over which RSUs or options become yours to keep
• sign-on bonus — a one-time payment made when you join; often with a clawback clause (repay if you leave within 1–2 years)
• total compensation (TC) — everything combined: base + bonus + equity + benefits
Key phrase: "What is the total comp including equity?" or "Can you break down the TC?"
• Base: $145,000
• Target bonus: 15% × $145,000 = $21,750
• RSUs: $40,000 total over 4 years = $10,000/year (assuming equal annual vesting)
• Sign-on: $10,000 (one-time, first year only)
• Year 1 TC: $145,000 + $21,750 + $10,000 + $10,000 = $186,750
Why option B is slightly off:
It writes "$10,000 RSUs (first-year vest)" but then also adds the sign-on separately, overcounting. The distinction: RSUs vest throughout the year, so Year 1 = $40,000 ÷ 4 = $10,000.
Key compensation vocabulary:
• base salary — the fixed annual amount paid regardless of performance
• target bonus — an on-target earnings bonus assuming 100% performance; actual payout may vary
• RSU (Restricted Stock Unit) — company stock granted to you, released ("vesting") over a schedule (e.g. 4-year cliff or monthly)
• vesting schedule — the timeline over which RSUs or options become yours to keep
• sign-on bonus — a one-time payment made when you join; often with a clawback clause (repay if you leave within 1–2 years)
• total compensation (TC) — everything combined: base + bonus + equity + benefits
Key phrase: "What is the total comp including equity?" or "Can you break down the TC?"