How to evaluate a job offer (beyond the base salary)

The number on the offer letter is just the start. Here's a complete framework for evaluating what a job actually pays — and what to push back on.

Most candidates make their decision based on base salary. That's understandable — it's the most visible number and the easiest to compare. But base salary is often a small fraction of the real value (or cost) of a job offer. Making a decision without evaluating the full picture is how people end up in roles that pay less than they thought — or pass on offers that were actually exceptional.

Here's a complete framework for evaluating every dimension of an offer before you respond.

Start with total compensation, not base

Total compensation (TC) includes every form of pay you receive. For most tech and knowledge-work roles, that means:

• Base salary — The fixed annual amount, paid every paycheck.
• Annual bonus — Usually expressed as a percentage of base (10–20% is common). Ask what the target bonus is, what percentage of employees actually hit it, and whether there's a cap.
• Equity / RSUs — Restricted stock units that vest over time. Ask for the total grant value, the vesting schedule (4 years with a 1-year cliff is standard), and whether there are refresh grants after vesting.
• Sign-on bonus — One-time payment, often with a clawback if you leave within 1–2 years. Useful for replacing unvested equity you're leaving behind.

A useful mental model: annualize everything. If you get a $200,000 base, a $20,000 target bonus, and a $100,000 RSU grant vesting over 4 years, your annualized TC is $245,000. That's a very different number than the $200,000 on the offer letter.

Benefits: the hidden value (and cost)

Benefits can be worth $20,000–$40,000 a year in real money — or almost nothing. Here's what to evaluate:

• Health insurance — What's the monthly premium for you? For a family? What are the deductibles and out-of-pocket maximums? A low premium with a high deductible is worse than it looks. Premium-free family coverage is worth $15,000–$25,000/year in pre-tax dollars.
• 401(k) match — A 4% match on a $150,000 salary is $6,000 of free money annually. The vesting schedule matters too — some companies vest immediately, others over 3–4 years.
• HSA contribution — Some employers contribute to your Health Savings Account. $1,000–$2,000/year is common at generous companies.
• PTO — How many days? Is PTO accrued or unlimited? “Unlimited PTO” often means less taken in practice. Ask what the average employee actually takes.
• Parental leave — 12–20 weeks for primary caregivers is a meaningful number. Some companies offer less. This matters more than people realize until they need it.

Equity: ask these questions before you get excited

Startup equity especially deserves scrutiny. A $500,000 equity grant sounds great — but the details determine whether it's meaningful or worthless.

• What percentage of the company does this represent? 0.1% of a $1B company is $1M. 0.1% of a $20M company is $20,000. The dollar value means nothing without the percentage and the valuation.
• What is the current 409A valuation (strike price)? Options are only valuable if the company exits above your strike price. If the company is already valued at $2B and your options strike at $1.50, you need a significant exit to see real value.
• What is the preference stack? Investors with liquidation preferences get paid before employees. In a modest exit, employees can end up with almost nothing even if the company “sold for $X.”
• How long do you have to exercise after leaving? Some companies give you 30–90 days. Others give 5–10 years. A long exercise window is significantly more valuable.

Non-financial factors that affect value

These don't show up in the offer letter but affect the real value of the job:

• Career trajectory — Will this role make you more valuable in 2–3 years? The best jobs accelerate your career in ways that show up in every future offer.
• Manager quality — A great manager is worth more than a $10,000 raise. A bad manager will make you miserable and slow your growth regardless of comp.
• Commute / remote flexibility — A 2-hour daily commute is worth roughly $20,000–$30,000 in time annually at most professional salaries. Remote work eliminates this cost.
• Company trajectory — Are they growing or contracting? Is the business model sound? Compensation at a company in decline can disappear fast.

How to compare two offers

Build a simple spreadsheet. Put both offers side by side with these rows: base salary, target bonus (%), RSU annual value, sign-on (annualized), health premium cost (subtracted), 401k match, and total. Then add a subjective score from 1–10 for role quality, manager, and trajectory. You'll often find that the offer that seemed lower is actually competitive once you run the numbers.

If one offer clearly wins on comp and you prefer the other for other reasons, use the better offer as leverage — most companies will move if they know they're competing.

What to negotiate

Everything on the offer is negotiable — but pick your top two or three and lead with those. Trying to negotiate everything signals a difficult-to-work-with candidate. Negotiating the most important things signals a confident, prepared one.

If base is non-negotiable (some companies have fixed bands), ask for a higher sign-on, accelerated vesting, or more equity. There's almost always something they can move on — you just need to ask. For a full guide on signing bonuses specifically, read how to negotiate a signing bonus.

Once you know what you want to push on, read how to negotiate salary after a job offer for the exact scripts to use in the conversation.