I have seen many people having doubts on whether they are adequately paid for their role and work experience. They are often confused about comparable offers, and how their CTC (compensation on Cost-To-Company basis) compares with the CTC in another firm.
Well, there are ample resources on the web for research on current salaries, salaries for similar roles in comparable firms and salaries in product management roles within the corporate hierarchy. Some of the more useful ones for product managers include:
- Salarykhoj and Payscale
- R2I Club Forums (give a good idea of salaries in India and overseas)
You should thoroughly investigate these to find out where you stand (in case you are interested in such data).
Additionally, you should also be aware of the different components of the compensation offered. For offshore R&D centers in India, the total compensation could include base salary, variable pay, performance bonus, RSU/Stock/ESOP, joining bonus, relocation allowance, retiral benefits and other smaller components. If you are joining a local market Indian firm, you can potentially expect even more components in your appointment letter to pad up your offered compensation on a CTC (Cost to company) basis.
More points to ponder
- Some firms add non-cash component to CTC, which could include education/training reimbursement, payment for industry certifications etc. Exclude them when comparing CTC from different jobs.
- Some firms include retirals (PF and gratuity) within their CTC, while others exclude it.
- Some firms will consider the performance bonus mentioned in the offer letter as the upper limit. So you can only receive up to 100% of the bonus. Others use the mentioned bonus as a median, and you can receive more than that under favorable circumstances.
- Product management roles should not have variable pay, I have written about it here. You can still see as a part of total compensation in some firms.
- RSU/Stock Grant/ESOPS etc are usually offered only if negotiated for during the hiring process (to sweeten the deal), or at the annual performance appraisal. They are normally excluded from CTC calculations for a variety of reasons.
- Signing bonus and relocation amount (if offered) are part of a standard deal in most firms. There is little room to negotiate on this.
- Many firms are open to increasing their offer by up to 10% for the right candidate. But this only happens if there is a perfect fit between candidate, position and hiring manager.
- Startups can offer stock or stock options or future stock options. In most cases, these are worthless, as there have been very few IPOs (a rare exception is Makemytrip.com) and this is likely to continue. So consider only the cash component when evaluating the CTC at startups.