Total compensation explained: base, bonus, equity and benefits
Two offers, same salary, thousands apart in real value. How to compare compensation like an accountant in fifteen minutes.
By Daniel Brooks · 2026-08-02
Base salary is the headline, but it's rarely the whole story. Bonuses, equity, pension matching and healthcare can swing an offer's real value by a third.
The comparison checklist
- Bonus — is it guaranteed, formula-based, or 'discretionary' (translation: maybe zero)?
- Equity — value it conservatively; private-company shares are a lottery ticket, not salary.
- Pension/401k match — free money; a 5% match on a lower base can beat a higher base with none.
- Insurance, leave & learning budgets — real cash value people forget to count.
Do the mathPut every offer into one spreadsheet as expected annual value. The 'lower' offer wins surprisingly often.