FM-12 // COMPENSATION & BENEFITS

Pay Philosophy

Updated Jan 15, 2025 · Contributors: nikhil
Table of Contents

Our Approach

We pay competitively because we want to hire great people and not lose them to compensation. Our philosophy is simple:

  1. Pay well - target the 75th percentile of market rate for the role and level
  2. Be transparent - everyone can see how pay is determined
  3. Be fair - same role + same level + same location = same pay
  4. Keep it simple - no complex bonus structures or negotiation games

How We Set Pay

Salary Bands

Every role has defined salary bands based on:

  • Role - engineering, product, design, operations, etc.
  • Level - IC1 through IC6, M1 through M3
  • Location - adjusted for cost of labor (not cost of living) by geography

Bands are reviewed annually against market data from Pave, Levels.fyi, and our own recruiting data.

No Negotiation

We don’t negotiate individual salaries. When we make an offer, it’s the best offer - not a starting point for negotiation.

Why? Because negotiation rewards confidence and social capital, not skill or value. People who are less comfortable negotiating (disproportionately women and underrepresented groups) shouldn’t earn less for the same work.

Annual Review

Every year we:

  1. Benchmark all roles against current market data
  2. Adjust bands if the market has moved
  3. Review individual placement within bands based on performance
  4. Apply cost-of-labor adjustments for geographic changes

Raises are communicated in January, effective February 1.

Equity

Every full-time employee receives equity (stock options) as part of their compensation. Equity grants are based on role and level, with a standard 4-year vesting schedule and 1-year cliff.

How We Think About Equity

  • Equity is a real part of compensation, not a “bonus” or “incentive”
  • We explain equity in plain language - what it’s worth, what the scenarios look like, and what the risks are
  • Refresh grants are given at annual review to recognize growth and retain talent
  • We offer a 10-year exercise window for departing employees (instead of the standard 90 days)

Contractors

For contractors, we pay market rate for the geography and skill set. Contractors can see the same rate cards as full-time employees. We don’t pay contractors less than equivalent full-time rates - the flexibility premium goes both ways.