Tech Compensation Breakdown for New Grads: Base, Bonus, RSU (2026)

An offer of "$200K total comp" hides four very different things. Here is how base, signing bonus, performance bonus, and RSUs combine across FAANG, top non-FAANG, and mid-size companies in 2026.

"Total compensation $220K." Somewhere between getting that line on an offer letter and seeing your first paycheck, two things happen: you discover that "total comp" is a projected average, not a guaranteed number, and you discover that the four components of it have wildly different tax treatments and vesting schedules. The "$220K" can mean very different things depending on whether you're at Google, Amazon, or a Series C startup.

This post breaks down the four components, the actual 2026 numbers from compensation tracking sources, the vesting schedules that vary across companies (Amazon's is very different from Google's), and the tax math that matters specifically for F-1 students on OPT versus H-1B. You should walk into your offer negotiation knowing exactly what you're being offered.

The four components of tech total compensation

Every offer has some combination of these four:

1. Base salary — fixed annual, paid biweekly. The most predictable, least negotiable component.
2. Signing bonus — one-time cash payment, usually paid in the first 1-2 paychecks. Often subject to clawback if you leave within 1-2 years.
3. Performance bonus — annual cash bonus, typically a percentage of base, paid based on individual + company performance.
4. Equity (RSUs) — restricted stock units that vest over time. Most of the variable component, and the one most candidates misunderstand.

When a company says "total compensation," they're typically annualizing everything: dividing the equity grant by the vesting period and adding it to base, signing, and target performance bonus. That math works only if (a) the stock price stays flat or rises, (b) you stay at the company through full vesting, and (c) the company hits performance targets.

What FAANG new grad offers actually look like in 2026

Numbers from compensation tracking sources for software engineer new-grad offers (Levels.fyi 2025-2026 data, plus internal data from F1Jobs candidates):

FAANG (Google, Meta, Amazon, Apple, Microsoft)

Top-tier non-FAANG (Stripe, Databricks, Snowflake, Anthropic, OpenAI)

Often higher TC than FAANG for top candidates, especially at AI labs. Stripe and Databricks new-grad TC commonly $200K-$350K. AI labs have pushed select new-grad offers above $400K in 2025 to compete. Vesting tends to be 4-year cliffless or with 1-year cliff.

Mid-tier tech ($1B-$10B revenue, post-IPO)

Series B/C startups (pre-IPO)

Equity at startups is the asymmetric play. It's worth zero in most outcomes and life-changing in a few. Don't take a startup offer expecting the equity to "definitely be worth X."

The vesting schedule that varies most: Amazon vs everyone else

The single biggest gotcha in tech offer comparison: Amazon's RSU vesting schedule is dramatically different from other FAANG companies, and it changes how to compare offers.

Google, Meta, Apple — graded ~25% per year

Most major tech companies vest RSUs in equal annual chunks: 25%/25%/25%/25% across four years, often paid out quarterly or monthly. No cliff for many grants. This means your TC is roughly the same across all four years, assuming flat stock price.

Microsoft — variable

Microsoft has multiple grant structures. Stock awards typically vest 20% twice a year over 5 years, but some grants follow a 25% annual pattern. Read your specific offer carefully.

Amazon — backloaded 5/15/40/40

This is the one that surprises people. Amazon's RSU vesting is:

• Year 1: 5% of grant vests
• Year 2: 15%
• Year 3: 40%
• Year 4: 40%

Vesting cadence: biannual (May and November) for most levels, quarterly for L4-L7.

To compensate for the lean Years 1-2, Amazon adds Year 1 + Year 2 sign-on bonuses paid out monthly. So your annualized cash flow looks similar to Google's in Years 1-2 — but the equity you've actually accumulated by the end of Year 2 is much smaller. If you leave Amazon before Year 3, you walked away with much less equity than the offer letter implied.

This is why Amazon "TC" projections often look comparable to Google's despite different total grant sizes — the projection averages across 4 years assuming you stay through Year 4.

Startups — 4-year vesting with 1-year cliff (standard)

Most startup option/RSU grants vest:

• 1-year cliff — nothing vests until you've been there 12 months. If you leave at month 11, you get zero equity.
• Monthly thereafter — after the cliff, equal monthly vesting for the remaining 36 months.

So the "0.10% equity" on the offer letter only really exists if you stay 4 years.

RSU tax treatment — the part that matters most for F-1 students

RSUs are taxed as ordinary income at the moment they vest, valued at the closing stock price on vesting day. This has implications:

The withholding gap

Default federal withholding on RSU vests is 22% (the supplemental wage rate). This is often less than your actual marginal tax rate if your total income exceeds about $95K (single) or $190K (married). For new grads at FAANG with $180K+ TC, the actual marginal federal rate is 32-35%.

Translation: you'll owe additional federal tax at year-end beyond what was withheld. Set aside roughly 8-12% of vested RSU value to cover the gap.

State tax variations

Vested RSUs are also subject to state income tax based on where you lived/worked when the underlying work occurred. California and New York tax RSUs at 9-13% effective; Washington, Texas, Florida, Tennessee have no state income tax.

F-1 OPT vs H-1B FICA

This is the F-1-specific detail most students don't know:

• F-1 students on OPT (initial or STEM): exempt from FICA (Social Security + Medicare = 7.65%). Save the 7.65% on every paycheck and on every RSU vest.
• H-1B holders: FICA applies in full.

When you transition from OPT to H-1B (typically October 1 of the year your H-1B is approved), your effective tax rate jumps by 7.65% on the same comp. Plan for it. A $200K TC role nets approximately $15K less per year on H-1B than on OPT, all else equal.

Capital gains on RSU sales

After RSUs vest and you receive the shares, selling them within 1 year = short-term capital gains (taxed at ordinary income rates). Selling after 1 year = long-term capital gains (0%, 15%, or 20% depending on income).

For new grads with significant RSU vests, this is real money. Many tax advisors recommend selling immediately at vest to avoid concentration risk in your employer's stock — the long-term-cap-gains play is worth less than the diversification.

Regional pay variation

Most tech companies adjust pay by location. Tier-1 (SF Bay Area, NYC, Seattle) is the headline number. Tier-2 (Austin, Boston, Denver, DC, Chicago) typically receives 90-95% of Tier-1. Tier-3 (anywhere else US) often 80-90%.

Some companies (Airbnb, GitLab) pay one US-wide rate regardless of location. Most don't.

When adjusted for cost of living, Austin and Denver consistently outrank SF/NYC for purchasing power. A $170K TC in Austin spends like a $230K TC in San Francisco.

The negotiation moves that actually work

Five tactics that have worked for F-1 candidates we've coached:

1. Negotiate on the equity grant size, not base. Base is hardest to move. Equity grant size has more flexibility, especially at non-FAANG.
2. Ask about Year 2 signing bonus. Many companies will add a Year 2 retention bonus if pressed. Amazon's structure already includes one; Google's doesn't, but they'll often agree to one.
3. Get any sign-on bonus paid in the first paycheck, not month 6. Cash flow matters when you're moving cities and paying broker fees.
4. Check the stock-vesting cliff carefully. Amazon's 5/15/40/40 vs Google's 25/25/25/25 means very different things if you might leave before Year 3.
5. Ask explicitly about mobility on H-1B. A "transfer-friendly" employer (cap-exempt or willing to file an amended H-1B if you change roles internally) is more valuable than 5% more base. See our H-1B transfer playbook.

Common mistakes that cost real money

• Comparing two offers by "TC" without checking vesting schedules. Amazon's 5/15/40/40 means a 4-year TC is much less front-loaded than Google's.
• Not setting aside money for the RSU tax shortfall. 22% withholding ≠ your real marginal rate. Plan for the gap.
• Holding onto RSUs after vest as a bet on the company. It's compensation, not investment thesis. Diversify.
• Forgetting that OPT-to-H1B transition adds 7.65% FICA. Your take-home drops noticeably; budget for it.
• Negotiating only the headline number. Base + signing + equity + Year 2 sign-on + benefits is the package.

What "good" looks like for an F-1 new grad in 2026

A reasonable offer for a new-grad SWE F-1 candidate in 2026:

• FAANG: $200K-$240K projected TC across 4 years; sign-on bonus $25K Year 1 + Year 2 if at Amazon; vesting confirmed
• Top non-FAANG: $200K-$280K with strong Year 1 cash (high base + high sign-on)
• Mid-tier: $150K-$170K with reasonable equity and a clear path to growth
• Startups: $130K-$150K with meaningful equity if the founders are credible and the round is recent

Numbers below these for the relevant tier are negotiable. Numbers significantly above are signs of a strong offer worth taking seriously.

The right comparison isn't dollar-for-dollar — it's risk-adjusted across the four components. A FAANG offer with stable equity beats a startup offer with speculative equity, even at higher headline TC, for most F-1 students whose visa timeline favors stability.

Want help comparing two offers? F1Jobs reviews offer letters with a focus on the F-1-specific tax and vesting details that matter.