Total compensation
Total compensation is the full value of an employment package — base salary plus variable pay, equity, benefits, and any other monetary components. The number to use in offer conversations; base alone usually undersells the offer.
What total compensation actually includes
A typical European SMB total-comp package for a senior role:
- Base salary: contractually guaranteed cash.
- Variable pay: target bonus (annual or quarterly), tied to performance or company metrics.
- Equity: stock options or VSOPs (virtual stock options), typically with a 4-year vest.
- Benefits: pension contributions, health insurance top-ups, parental leave above statutory.
- Other: signing bonus (one-off), relocation, training budget, equipment.
Cash + equity is roughly 80-90% of the headline number; benefits round out the rest.
Why presenting total comp matters
Three concrete moves that improve offer acceptance:
- Show the calculated number, not just base. A candidate comparing “€80k base” to a competitor’s “€85k base” decides on the smaller number. Showing “€102k total comp” against the other offer‘s “€95k” changes the decision.
- Be explicit about volatility. A €90k base + €10k target bonus is not the same as €100k base. Candidates with prior bonus experience know this; first-time variable-comp candidates need it explained.
- Currency-equivalize for relocators. A €100k offer in Berlin vs. €100k in Munich is a different real-comp picture.
What “total comp” hides
- Equity is illiquid until the company has an exit. Treating €50k of options as €50k of cash misleads junior candidates.
- Benefits have personal value variance. Pension matters more to a 45-year-old than a 25-year-old; parental leave more to some than others.