- 1.Big Tech (FAANG) offers highest total compensation: $250K-$450K for senior engineers, with 40-60% coming from equity (Levels.fyi)
- 2.Early-stage startups pay 15-25% lower base but offer equity that could be worth $0 or $millions
- 3.Enterprise companies (Fortune 500) offer moderate compensation ($150K-$200K) but superior stability and benefits
- 4.Mid-size companies (500-5000 employees) often represent the best risk/reward balance with solid pay and meaningful equity
- 5.Total compensation gap between Big Tech and startups can exceed $150K annually at senior levels
Understanding Company Size Categories
Tech companies fall into distinct categories, each with different compensation structures, cultures, and career implications. Understanding these differences is essential for career planning and salary negotiations.
Companies with < 50 employees and < $10M raised. Highest risk, highest potential upside. Lower base salary compensated by significant equity grants. Your shares could be worth nothing or millions.
Key Skills
Common Jobs
- • Founding Engineer
- • Early Employee
- • Full Stack Developer
Companies with 50-500 employees, typically $20M-$200M raised. Product-market fit achieved. Compensation improves but still below Big Tech. Equity less risky but smaller grants.
Key Skills
Common Jobs
- • Senior Engineer
- • Tech Lead
- • Engineering Manager
Pre-IPO companies like Stripe, Databricks, SpaceX. Competitive base salary, substantial equity with clearer path to liquidity. Best of both worlds for many.
Key Skills
Common Jobs
- • Staff Engineer
- • Principal Engineer
- • Director
Google, Meta, Amazon, Apple, Microsoft, Netflix. Highest total compensation. Liquid equity (RSUs). Excellent benefits. More bureaucracy and narrower scope.
Key Skills
Common Jobs
- • SWE III-VII
- • Staff/Principal
- • Director+
Traditional companies with tech divisions: banks, healthcare, retail. Moderate compensation but strong benefits, stability, and work-life balance. Less equity-focused.
Key Skills
Common Jobs
- • Software Developer
- • Senior Developer
- • Architect
Total Compensation by Company Size
Total compensation (TC) varies dramatically by company size. Big Tech's premium comes primarily from equity, not base salary. Understanding TC—not just base—is critical for comparing offers.
Senior Engineer Compensation by Company Stage
| Company Type | Base Salary | Equity (Annual) | Bonus | Total Comp |
|---|---|---|---|---|
| Early Startup (Seed-A) | $130K-$160K | $0-$50K* | 0-5% | $130K-$180K |
| Growth Startup (B-D) | $150K-$180K | $30K-$80K* | 5-15% | $180K-$260K |
| Unicorn / Scale-Up | $170K-$200K | $80K-$150K* | 10-20% | $260K-$350K |
| Big Tech (FAANG) | $180K-$220K | $100K-$200K | 15-25% | $300K-$450K |
| Enterprise / F500 | $140K-$175K | $0-$30K | 10-15% | $155K-$210K |
Source: Levels.fyi, Glassdoor 2024 (*startup equity highly variable)
Big Tech vs Startup: Total Compensation Gap
Senior Engineer total compensation comparison
Big Tech (FAANG) Senior
Median Annual Salary
Series A Startup Senior
Median Annual Salary
Equity Compensation Deep Dive
Equity is where compensation structures diverge most dramatically. Understanding the difference between stock options (startups) and RSUs (Big Tech) is essential for evaluating offers.
Equity Types Compared
| Factor | Stock Options (Startup) | RSUs (Big Tech) | Winner |
|---|---|---|---|
| Certainty of Value | Low (could be $0) | High (public stock) | RSUs |
| Potential Upside | Very High (10-100x) | Moderate (1-3x) | Options |
| Liquidity | None until exit | Immediate on vest | RSUs |
| Tax Treatment | Complex (ISO/NSO) | Simpler (income tax) | RSUs |
| Exercise Cost | Must pay to exercise | No cost | RSUs |
| Risk Profile | High risk, high reward | Low risk, moderate reward | Depends on goals |
Source: Industry analysis
Source: Levels.fyi
Benefits and Perks Comparison
Beyond salary and equity, benefits add meaningful value. Big Tech and enterprise companies generally offer superior benefits, while startups trade benefits for equity potential.
Benefits by Company Type
| Benefit | Early Startup | Big Tech | Enterprise |
|---|---|---|---|
| Health Insurance | Basic plans | Excellent (low cost) | Good (moderate cost) |
| 401(k) Match | Rare/none | 50-100% up to 6% | 50-100% up to 6% |
| Parental Leave | Statutory minimum | 16-26 weeks | 12-16 weeks |
| PTO Policy | Unlimited (often less) | Flexible (4-6 weeks) | Fixed (3-4 weeks) |
| Learning Budget | Limited | $5K-$15K/year | $2K-$5K/year |
| Free Food/Perks | Some snacks | Full meals + perks | Occasional |
| Estimated Annual Value | $5K-$10K | $30K-$50K | $15K-$25K |
Source: Company benefits analysis
Career Growth Trade-offs
Compensation isn't everything. Each company size offers different career growth patterns, learning opportunities, and lifestyle trade-offs.
Career Growth by Company Stage
Startup: Breadth and Ownership
You'll wear many hats, make high-impact decisions, and learn rapidly. Career titles progress quickly (Senior in 2 years vs 4-5 at Big Tech). Downside: less mentorship, chaotic processes, and potential burnout.
Big Tech: Depth and Polish
World-class mentorship, formal career ladders, and deep specialization. Learn from industry experts. Downside: slower progression, narrower scope, and more process overhead.
Enterprise: Stability and Balance
Predictable career paths, strong work-life balance, and exposure to large-scale systems. Downside: slower technology adoption, more bureaucracy, and potentially less exciting work.
Growth-Stage: Best of Both
Meaningful ownership with growing resources. Product-market fit reduces existential risk. Strong learning with some structure. Often the sweet spot for mid-career engineers.
Consider Your Career Stage
Early career: Big Tech for mentorship and fundamentals. Mid-career: Startups for growth and ownership. Senior: Wherever aligns with your goals (impact, compensation, or balance).
Which Company Stage is Right for You?
The 'best' company size depends on your personal situation, risk tolerance, and career goals. Here's a framework for deciding:
Company Stage Decision Framework
| If You Value... | Best Fit | Avoid |
|---|---|---|
| Maximizing cash compensation | Big Tech | Early startup |
| Potential life-changing upside | Early startup | Enterprise |
| Job security and stability | Enterprise / Big Tech | Seed-stage startup |
| Rapid career progression | Growth startup | Enterprise |
| Work-life balance | Enterprise | Early startup |
| Learning and mentorship | Big Tech | Tiny startup |
| Autonomy and ownership | Startup | Big Tech |
| Resume brand value | Big Tech / Unicorn | Unknown startup |
Source: Career analysis
Negotiation Strategies by Company Type
Negotiation tactics differ by company size. Big Tech has structured bands; startups have more flexibility but tighter budgets.
Negotiation Tactics by Company Type
| Tactic | Startup | Big Tech | Enterprise |
|---|---|---|---|
| Negotiate base salary | Moderate flex | Limited (bands) | Limited (grades) |
| Negotiate equity | High flexibility | Moderate (refreshers) | Usually N/A |
| Negotiate signing bonus | Sometimes | Common ($30K-$100K) | Rare |
| Level negotiation | Very flexible | Possible but hard | Possible |
| Remote work | Usually negotiable | Policy-dependent | Often negotiable |
| Best leverage | Competing offers | Competing offers | Internal advocacy |
Source: Industry best practices
This analysis combines crowdsourced compensation data, industry surveys, and company-specific information to compare compensation across company sizes.
Frequently Asked Questions
Continue Your Research
Data Sources and References
Crowdsourced tech compensation by company and level
Salary reports and company reviews
Startup compensation benchmarks
Aggregated from public company benefits pages and employee reports
Taylor Rupe
Full-Stack Developer (B.S. Computer Science, B.A. Psychology)
Taylor combines formal training in computer science with a background in human behavior to evaluate complex search, AI, and data-driven topics. His technical review ensures each article reflects current best practices in semantic search, AI systems, and web technology.