Salary Considerations
Ok, so I don't know if this is uncouth or what not, but I figure since we've already discussed salaries, it's kosher. I got the official offer from Intel today. Base salary 52K based on a grade 3 entry level. Average expected bonus based on performance: 7k. Geographic compensation for Santa Clara: 13% of combined. So assuming I perform well and Intel does well, I'll be making around 65k. I think that my friends were right, and that for corporations the salary that you name doesn't matter, as long as it's not too high or too low. I guessed the right figure for a Portland salary: ~50k, but boy was I off trying to figure the CA inflation.
I feel like the more people talk about this stuff the better we'll (as n00bs to this bargaining-for-your-bread world) do in the future. But this stuff interests me: how the world decides who is paid what and how that relates to the actual usefullness of that job in my mind. And how different companies compare in "compensation". I know Nike's known for underpaying, because they figure you're lucky to be working for them. *shrug* Anyways, I don't know if you care, but that's what I got. Now...was the MIT education worth it? This has yet to be seen.
Adam, since no one else is
Adam, since no one else is answering your question... Santa Clara can be roughly comparable to Hillsboro... meaning it's not LITERALLY part of San Fransisco... but it's part of the greater metro area. The only thing is Santa Clara is I believe farther away from San Fransisco than Hillsboro is to Portland. So it is in a sense part of the whole San Fransisco metro area. :)
Indeed
Congrats on the job offer. What kind of engineer will you likely be, btw? I worked as a process engineer at a startup before grad school. It was pretty neat.
13% is a pretty high location adjustment, relative to what the federal government does- well, at least what they did a few years ago. So they're probably being pretty reasonable. However, the Santa Clara area is wayyyyy expensive. My buddy worked for Google over the summer; they paid him pretty well, but he still had to live in a shack.
Ok a little confused. Are
Ok a little confused. Are you saying that without the bonus... you are making 58k in Santa Clara (with the adjusted geo compensation)? Or what exactly?
The only reason why I wouldn't count on the bonus in your salary... is because they tax the shit out of bonuses (more than 50% or whatever). Plus... bonuses may not always be as high as you expect... even when the company does well as a whole from an external perspective. Sometimes we seem to be doing awesome externally... but we didn't match our goals internally quite as strong. So just keep that in mind.
Also, uncouth is a cool
Also, uncouth is a cool word.
Agree with Patrick
Bonuses should be counted as less than 50% of their face value. Something about being a 'prize' (note if you win money on a gameshow or lottery, expect to only be able to keep 50% of it - the rest is taxed as a 'prize')
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Other important things to think about are the associated benefits.
I'm knocking on wood because I haven't been offered the position, but I have spoken with a Westat staff member about the benefits (part of their normal interview process... so since my interview wasn't normal... well it just adds to the story).
Insurance is a biggie. There were essentially 4 options that were explained to me going anywhere from costing nothing additionally to costing 140/month additionally.
If there is any sort of pay-in for insurance be sure to look at it.
Also, what are the retirement options? 401(K)? Company stock? What is the company contribution and what will they match?
When talking to Westat the associated benefits (bonus, 401(k), company stock) could be worth 9-15% of base salary every year, so it can be pretty signficant.
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Hey, sorry about the silence. I want to live really close to Intel for now so I'll probably be living about 45 minutes away from Justin, and we'll most likely see each other on the weekends only. I'm planning on driving down Jan. 2nd, viewing apartments and hopefully signing on the 3rd, and then hopefully moving in on the 4th before starting on the 9th. So I should be able to see you Adam, though I'll be in Coos Bay from the 20th to the 26th I think with J's family. When are you in town? Are you going to Patrick's party?
I'm going to be working in the Mobile Platform Architechture and Design Group, I think in Packaging. I don't know what my official title is yet, but I'll basically be simulating motherboard traces to see if any of the FC-PGA/LGA signals are interfering with each other. I think.
Intel's benefits are pretty good; I'm not sure how many levels of health care they have (Providence Hospital has 3, and I was fine on the one that didn't take any $ out of my salary). The 401K is based off of profits only, so if Intel doesn't do well then I don't either; if they do well then it works out to be ~8% of my salary, and I'll only be fully vested in it after 7 years. Pension is based off of the number of years and the average salary over time, and has a percentage over time vesting plan like the 401K. (20% after 3 years, 20% each year after that) The 7 year mark at Intel is pretty key: you get a 8-week sabbatical and you're fully vested in all of your benefits. They have a 15% discount on stock: basically twice a year you are allowed to buy stock with money you have set aside over the 6 months at 15% off--meaning if you sell it immediately it's a 15% rate of return. I think Patrick is right about the bonus thing...I'll get 58K on paper, and then when bonuses are handed out mine gets bumped 13% higher.
I've been looking at apartments online, and the one I like the best for now is going to be 1281$ a month for 700 sq. ft. Ooof. But it's 2 miles from Intel, it's next to a Safeway, and it's relatively new/nice. No decisions until I see it, but I think it'll do. That rate is if I sign a 15 month lease, and I was a bit hesitant to commit to it for so long, but I'd like to get a handle on Santa Clara/San Fran before I find a different place, and it means that I can definitely be focused on doing well at work. I could get a cheaper place/smaller place, but I feel like it's worth knowing that I'm in a safe(=rich hah!) area (for the parents especially), and this is the closest I could find online to Intel which means I won't be facing too much road rage until I'm at least acclimatized to CA. Not that I can walk there given the massive-laned streets surrounding campus according to Google Earth.
If they let you sell it
Often companies have restrictions on stock purchased through company issued stock options.
The vested isn't too major a deal methinks, well aside from the extra perks. Usually vestment means you can remove the money or stop paying into it and it will still acrue interest. If you are unvested usually there is a bigger hit on removing money early and if you leave your account stops compounding.
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There are restrictions on the selling, but I think Intel lets you same-day sell all of it. Vesting for them means that that money is only yours after 7 years, so if you leave the company after 4 years you only get 40% of your 401k to take with you.
PDX
I'll be in Portland from the 23-29. I have no idea if I will be going to Datrick's party, as he never told me when it was going to be (though I got an email invitation requesting feedback on which date is best).
$1300/month isn't bad for an apartment, as I'm paying $1600/month now. And I am dirt poor. But I don't need a car, which increases expenses rather dramatically (especially insurance down in your area!!!! ouch!).
Speaking of houses, I am currently trying to figure out if I can afford purchasing one (or more likely a condo). I get paid crappy ($24k), but I have good credit and only want ~$200k. Anybody know of a good way to go about getting this kind of loan? Anybody have experience with this? (Maybe I should make a blog post on this instead of creating a tangent inside a comment thread...)
Nice
That is very cool that your offer is official now. It was interesting to hear about how they calcutate the California inflation too. I have a couple questions though (unrelated to your income):
I have little clue when it comes to most of California geography (SF/Sac=north, LA=south is about all I know). Where is Santa Clara? And specifically, how close is it to SF? I guess my ultimate question is will you be living with your bf down there, or will you just be in the same vicinity?
Also, do you know when your job starts (e.g. will you be in PDX when I am there in late December)?
Congratulations again!