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section 6 : total compensation anatomy

In [7]: # total_comp.ipynb

Total Compensation Anatomybase · equity · bonus, decomposed

Total compensation for senior ML engineers at T2 hyperscalers partitions roughly into 55 percent base, 30 percent equity, 15 percent bonus. The composition shifts substantially by tier and level.

6.1Composition (T2 senior baseline)

fig. 6.1
base 55%
equity 30%
bonus 15%

base

Base salary

$140k - $260k

Fixed annual cash. The only fully guaranteed component. Banded at most T2 hyperscalers; more flexible at T3 unicorns.

  • ·Negotiate to the upper end of the band first
  • ·Base anchors all percentage-based bonus computation
  • ·COL adjustments compress base across geography

rsu

Equity (RSU / pre-IPO)

$40k - $400k+/yr

Public RSUs at T2 vesting over 4 years; pre-IPO equity at T1 and T3 with high variance. Annual refreshes restore the cliff.

  • ·Ask for the annual vesting schedule, not the four-year total
  • ·Negotiate refresh cadence at offer time, not after
  • ·Tax: ordinary income at vest, capital gains thereafter

bonus

Annual bonus

$15k - $60k

Performance-based cash, typically 10-25 percent of base at T2 hyperscalers, 50-200 percent at T4 quant trading.

  • ·Get target bonus % in writing
  • ·Understand performance rating distribution
  • ·Quant trading uses profit-sharing, not target multipliers

6.2Total comp by level (T2 baseline)

table 6.2
LevelBaseTotal
L3 Junior$110k$151k
L4 Mid$160k$244k
L5 Senior$210k$352k
L6 Staff$270k$520k
L7 Principal$340k$730k

Table 6.2. Reflects T2 hyperscaler baseline. T1 frontier labs scale TC 1.3 to 2.5x at L5+; T5 enterprise scales 0.5 to 0.7x.

6.3Signing bonuses by tier

5 tiers

T5 enterprise

$10k - $30k

Often clawback if you leave within 1 year

T2 hyperscaler (mid)

$30k - $80k

Negotiable up with competing offer

T2 hyperscaler (senior+)

$50k - $150k

Sometimes split over 2 years

T1 frontier lab

$50k - $200k+

Often offsets unvested equity at prior employer

T3 unicorn

$20k - $60k

Less common; equity typically takes priority

6.4Frequently asked

3 questions

Q.What percentage of ML engineer total comp is equity?

A.At T2 hyperscalers, equity is roughly 30-40 percent of total compensation for L5 senior engineers, rising to 50 percent at L6+ as RSU grants scale super-linearly. At T1 frontier labs, equity can exceed 60 percent of paper TC at senior+ levels because of 2024-26 valuations. T4 quant trading firms typically have no equity; profit-sharing replaces it.

Q.How do RSU refreshes work?

A.Most T2 hyperscalers grant RSU refreshes annually starting in year 2 at the performance review cycle. A strong-performance refresh might be worth 50-100 percent of the original annual grant. Refreshes create a 'golden handcuff' effect because vested equity steadily decreases as you approach the original 4-year cliff.

Q.Should I prioritise base salary or equity for an ML role?

A.Risk tolerance and employer tier should drive the answer. At a T2 hyperscaler with public RSUs, equity has a tradeable market value, optimise total comp. At a T1 frontier lab or T3 unicorn, base is the safer floor since pre-IPO equity may never become liquid. As a rule, take more equity risk earlier in your career when you can afford the variance.

→ negotiate your offer→ tier benchmarks