 So you want to break into the tech industry but you're not sure how much people are getting paid in the space because the compensation is very complex and high in the tech industry. So in this video, I'm going to break down the sweet, complex and high tech salaries such as product manager salaries, software engineer salaries and discuss if gender gap actually exists in the tech industry or not. By the end of this video, you will understand the key components that goes into the half million dollars paycheck in the tech industries and understand why they're getting paid more. Hey guys, this is Dr. Nancy Lee, a director product and featured in Forbes. I've helped 100 people land a dream PM job offer in fan companies and unicorn startups. If you want to take the product management course, please go to PM Accelerator.io to learn more. To learn the most effective way to become a product manager, please subscribe to the channel and hit the bell button to be notified every time I turn on new video every Wednesday. Check out the inspiring stories on Instagram to learn so many people with very similar background just like you. First of all, let me share with you my sad story of how I was underpaid significantly in my first job, fresh out of my school. That was 2013, was still recovering from the recession. I felt I was so lucky I was able to land a systems engineer job and at the time they also sponsored my H1B, especially during recession. Most companies do not sponsor H1B, so I just accept offer without negotiating. Guess what? Later on, I realized that at the moment I have other co-workers who is a man who joined the company, he was actually paid higher than me in terms of the base compensation and he also got additional sign-on bonus. And if I had tried to negotiate after more ask for more salary, my base salary will be significantly different from where I am right now. And guess what? I also discovered that I was continuously underpaid throughout the entire process because I never knew what the different kind of compensation structures in tech companies and actually the six different elements goes into a tech compensation. So that's why I'm filming this video really want you guys to learn what's in and out of the things can goes into compensation so that you never underpaid regardless of your gender. There are six elements goes into any tech compensation. Let me break it down to you guys and also tell you the exact number what you should expect in different stages of your career. First of all, the base salary is the basics. It's like a cash. The moment you join the company, they're going to give you the base salary and the base salary is different compared with type of jobs in tech companies. For example, if you are fresh out of college, you have no work experience but if you join big tech companies such as Google, Meta, Microsoft and Amazon, you're getting paid a lot If you are a software engineer, your base salary could be about 150,000 dollars or up to 200,000 dollars. But they also give you lots of equity and stock options and your total compensation can easily get up to 250,000 dollars as a fresh graduate. For example, this is a real-life salary from a software engineer working for LinkedIn. The case total compensation is 250,000 dollars as a fresh graduate. If you are product managers and join a fan company such as Microsoft, your total compensation could be around 150,000 dollars as a fresh graduate. Therefore, in general, software engineers are getting paid more. However, product manager has much more upside in terms of how you grow as a leader in the company. So the entry-level product manager, your base salary could be about 80,000 dollars if you work for startup or around 130,000 dollars if you work for a fan company. So the range is actually very wide. Now, let's talk about bonuses. There are four types of bonuses. Bonus number one is your annual performance bonus. Those are your target bonus. It's usually around 10% up to 20% if you're entry-level. If you're direct level or someone who's very senior, it's likely your bonus is going to double your base salary. So which means the more senior you are, the higher your bonus will go. Second type of bonus is sign-on bonus. Once you join the company, you can actually ask for sign-on bonus regardless of your entry-level or director or product manager or a software engineer in the company. I have negotiated up to 100,000 dollars at the sign-on bonus for other people. So the range of sign-on bonus is very big. But usually, when companies give you sign-on bonus, they give you different cliffs. They don't give everything upfront to you. They usually say you have to stay in the company for a year or certain amount of time so that you're able to capture all the sign-on bonus. So make sure to pay attention regarding the specific time period in the cliff that's designed for you. The third type of bonus is relocation package. If you move from one state to another state or you move further away from your original location, you're able to negotiate very good relocation bonus. And those relocation packages could also include hiring a realtor to sell your house and waive the transaction fee. And actually when I receive new offers, some company offers this to me so that you actually waive those 5% or 3% of realtor transaction fee. That's significant amount of money. The fourth type of bonuses are different kind of benefits and perks within the company. For example, lots of tech companies give you free gym membership, free lunch, free everything so that you can spend lots of time working in that company. So that's a way, to me, it's a trap. But they can also give you different kind of health benefits. And for example, your health care premium varies significantly. Some company I joined, the health premium is only like $100 or even $20 per month. For some other company, it's like $400-$500 per month. So they vary significantly. So whenever you receive your benefit package, I'm going to ask a lot regarding the health care benefit as well. And on top of that, I also pay close attention to their 401k contribution. Some of my co-workers in the past, their company pay him 10% of the salary can be contributed into the 401k package by the employer. That's 10% growth immediately. And for some other companies, only give you 3% match. Some companies do not even give you match. So you can actually look into those different kind of bonuses. Here's another important tip for new months. And you should also look into maternity leave policy and also maybe negotiate your maternity leave period. And different company has very different maternity leave policy. And for example, summer students, it's crazy when the company discover they were pregnant and summer students will actually pay less during the interview process. It's crazy. I know. So if you want me to make a separate video, dive deeper on this topic, please comment in the description of this video. Therefore, it's very important you need to negotiate different kind of bonuses and packages. For example, like sign-on bonus are frequently used if you receive other offers or you ask for higher stock options or total compensation, they're not able to match it. They're going to give you higher sign-on bonus. So figure out what's the best way to negotiate higher salary. It's very critical. Gender pay gap actually exists in tech companies. However, if you know the best methodology to negotiate and leverage all different examples I just gave you, you're able to actually get more than other people as well. Check out this video where I teach you the top four strategy to negotiate higher salary in tech companies. I'm also going to link the video in the description of this video. Please comment in the description and regarding what are the things it should be included in the bonuses. I love to hear from you guys. The third type of compensation is called equity. So what does equity mean is that it's your ownership of the company and it's different for a public-traded company and private company. For a public-traded company, they give you something called RSU, stands for restricted stock unit of a company. This condition usually means that you need to vest your RSU. So which means, for example, you join Google, they give you $400,000 RSU over four years and every year they give you about $100,000 per year. So it's fully vested within four years. But companies like Amazon, they're very tricky. The vesting period, they give you more layer of the four years to give you less at the beginning. For example, with the first year, you get zero vesting. Once you hit one year and they give you 15% and later on they give you 25% and year four eventually give you 40%. So the longer you stay in the company, the more RSU you're getting. So the vesting period is different and percentage is different based on different companies. If you work for big tech companies such as Google, Meta and Amazon, majority of your compensation are RSU of those companies. So for example, at the senior level, one of my students, he is a principal product manager. He's a Meta L7 product manager. He's getting paid a total compensation of around $800,000. But more than half of the compensation is Meta stock. Of course, current fees are Meta soft job, which means that his total compensation is also reducing as well. The same rules applies for software engineer. If you're a software engineer, if you're very senior, it's likely you can get paid about $1 million. That's for a very senior software engineer. In Google Meta, those kind of companies, they're getting paid significantly well as well. And majority of the compensation actually those kind of stock options in big tech companies. So it heavily depends on the stock price of those big tech companies. The next part of compensation is the equity in private companies. For example, and if you join private companies, they also give you RSU or stock options. However, these cannot be transferable as easily as just selling your Google stock. So it will take you a while for you to be able to sell your equity within company. So usually they give you something called number of shares when you join the company. And then they give you a strike price, which means when you get into a company, the value of the company is about $1 per share. When they sell the company, when they go IPO or get acquired, the company could worth $10 per share. And your immediately your original $200,000 equity can worth $2 million right away as soon as it gets sold or go IPO. However, if they do not go IPO or startup even went down, it becomes paper money. So the risks and awards are balancing them out. So totally I will leave it up to you. What kind of companies would you like to join? And actually we have several students who are inside the PMX editor who rejected fan offers and joined unicorn startup because they believe that this company is about to go IPO soon. And their $200,000 equity will worth $2 million, hopefully $20 million. That's a life changing money right away. They can just immediately quit the job. This is crazy. I have a friend he joined Coinbase right before it went IPO. His equity actually turned into $8 million in cash as soon as Coinbase went IPO. The last part of conversation is actually not money, but your green card and H1B sponsorship. I personally spent 11 years to get my green card. I understand how hard and how important it is to get green card sponsorships starting from day one. And actually when you negotiate your conversation on your salary with HR, you should also start your green card application conversation as well. We actually have three students inside the PMX editor who are able to negotiate green card sponsorship starting from day one to join the company. If you're thinking about breaking into management space or tech companies, I have a free parliamentary salary table for you. We're going to tell you how much you need to get paid for what type of companies and what years of experience and based on what kind of locations as well. You can go to the link in the description to download the free salary table that's going to help you to achieve your half million paycheck as well. If you like any free content today, please make sure to hit the like button, comment below and share the video with any aspiring parliamentary managers. Make sure to check out this video where we discuss the parliamentary salary breakdown and I hope all of you guys is able to break into tech industry very quickly. This is Dr. Nian Sidi from PMXX Editor Diode. Bye.