Definition
Compensation package — A compensation package is the complete set of pay and benefits an employer offers an employee for a role, bundling together base salary and any additional forms of pay and non-salary benefits the offer includes. Beyond base salary, a typical package can include an annual bonus target, a signing bonus, equity such as stock options or restricted stock units, health insurance and retirement plan contributions, paid time off, and other benefits like a remote-work stipend, depending on the company and role. The components vary widely by company, industry, and seniority. A startup role might lean heavily on equity with a lower base salary relative to a comparable role at an established company, while a role at a larger company might offer a higher base salary with a smaller or more predictable bonus and less equity. Comparing two offers by base salary alone can be misleading, since a lower base salary paired with strong equity or significantly better benefits can add up to more real value than a higher base salary with a thinner package around it. A compensation package is typically described in full in the offer letter or an attached summary document.
Negotiating a compensation package usually means negotiating more than one line item, since a candidate might trade a smaller base salary increase for more equity, depending on what they value more given the company's stage. Comparing offers across companies also means accounting for how differently each one structures its package.
Frequently asked questions
What's typically included in a compensation package beyond salary?
Common components include bonus potential, equity such as stock options or RSUs, health and retirement benefits, and paid time off, though the exact mix varies widely by company.
Why can't you compare two job offers by base salary alone?
The rest of the package, equity, bonus structure, and benefits, can add substantial real value or reduce it, meaning a lower base salary with a stronger package overall can be worth more.
Is a compensation package the same as total compensation?
They're related. A compensation package describes the components included in an offer. Total compensation is the calculated dollar value of all of those components added together.
Related pages
Look at the whole offer, not just one number
Intervieux's job board shows what's posted for a role up front, and a salary negotiation practice interview helps a candidate think through the full package, not just base salary.