People have a right to deeply understand their compensation

That includes their merit increases, their performance bonuses, their equity awards, all that.

Everyone in the company should know answers to questions like:

  • Which levers can I pull for my own comp?
  • Which levers can my manager pull for my comp?
  • How was my last raise calculated, and why didn’t I get more (or less)?
  • How much vested vs. unvested equity do I have?
  • When is my next vest date, and how much will vest?
  • What’s my salary band, and where am I in that band?
  • What was my last performance rating, and what’s the math behind how that affected my comp?
  • Will my total comp dip when my next grant stops vesting, or will I get a new grant (and if so, how much)?

If you don’t know those answers, demand them. And for managers, if your direct reports don’t know those answers, explain them. Nobody should have to wonder.

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