Pay by Role editorial · Updated August 25, 2026 · 12 min read

Bonus, overtime, and total compensation

When a recruiter says “$140k total,” ask for base, bonus target, and equity separately. Place base on the percentile chart first. This guide is how to handle bonus, overtime, and total compensation without counting money you might never see.

Why is base the number the market speaks?

Occupation wage statistics and most salary pages, including ours, are closest to base (or base-like gross). If you dump bonus and equity into one package number, you will mis-place yourself on the chart. How to read a salary range assumes you are placing base.

If your occupation is overtime-heavy, the published median may already include extra hours in the source data. Do not add overtime on top without knowing how the statistic was built.

How should you treat bonus targets?

A 15% target bonus is a forecast. Use a conservative attainment when you compare offers, not 100% unless the team historically pays full target. Guaranteed and signing bonuses are closer to cash. Year-two compensation that drops the signing bonus should be modeled as a pay cut unless base rises to match.

Commission and OTE belong in the salary vs contractor mindset: separate the floor from the story. Compare floors to occupation percentiles.

How should overtime and shift pay enter the comparison?

Annualise a typical roster, not a heroic month. Shift differentials and on-call stipends are cash; unpaid on-call is a cut in effective hourly rate. Use the hourly calculator when the offer is a rate plus expected overtime, then compare that annualised gross to the chart with a grain of salt.

Why is equity a different asset from salary?

Options and RSUs have value only under vesting, dilution, and price paths you do not control. Compare cash to cash first. Get grant size, type, vesting, and refresh policy in writing. How employers set salary bands covers how companies trade equity for cash. Unusual grants are a reason to use a professional — this is not that advice.

How do you build a one-page total-comp view?

  1. List base, expected bonus, overtime, signing, benefits you would otherwise buy, and equity at a haircut you can defend.
  2. Sum the cash-like items for a budget view.
  3. Put only base (and overtime if it is structural) on the occupation chart.
  4. Run take-home on the cash-like total if you want a household number — bonus months will not be even.

When two employers use different mixes, the “higher package” is often the one with a higher floor. Negotiate the floor first.

Key takeaways

  • Place base on the occupation chart; treat bonus and equity as extra layers.
  • Target bonus is a forecast; signing bonus is closer to cash.
  • Annualise typical overtime, not your best month.
  • Do not convert last year’s stock peak into guaranteed salary.
  • Negotiate the cash floor before you fall in love with a total-rewards slide.

Frequently asked questions

Is total compensation the same as salary?
No. Salary (base) is the recurring cash employers and wage surveys usually quote. Total compensation may add bonus, equity, and benefits. Place base on Pay by Role percentiles first. Then add other layers with honest haircuts so you do not compare a dream package to a market base.
How should I count a bonus when comparing offers?
Separate target from guaranteed. Use a conservative percent of target unless you have evidence the team pays 100%. Model year two without a signing bonus. Compare expected bonus cash after that haircut, not the brochure number.
Does overtime count toward the salary median?
It depends on the statistical programme. Some occupation wages include overtime-heavy hours; others are closer to straight-time. If your roster is quiet, you may land below a median that includes extra hours. Ask how the source is built, and annualise your typical roster rather than adding overtime twice.
How do I value equity in a job offer?
Get grant type, size, vesting, and refresh in writing. Compare cash to market cash first, then decide how much uncertainty you will take. Do not treat last year’s peak stock price as year-one salary. Complex or cross-border grants need professional advice.
Should I negotiate OTE or base?
Negotiate the floor (base, and any guaranteed bonus) first. OTE depends on territory, quota, and ramp. Uncapped OTE is a plan, not a wage. If base sits below local p25 for the real level, a prettier OTE does not fix the occupation-chart problem.

Next step

Total compensation is a stack. Chart the floor, haircut the story, then negotiate. A prettier slide is not a higher market wage.

Use this split when two packages compete →

Or place base on a job page before you add bonus math.