The real compensation difference between working at a large tech corporation and a high growth startup

by Founders on January 5, 2012

Through StartupDigest VIP we’ve been able to see the real difference between compensation packages for people moving out of the corporate world and into high growth startups. Here’s what we’ve found so far:


(All specific names and amounts are left out for privacy) 

  • The overall base salary is only 5-10% lower for engineers, designers, and product managers at startups (ones that has raised $M’s, not for unfunded companies) compared to the base salary of Tier-1 Tech Companies (Microsoft, Google, etc)
  • Overall benefits are less at startups. Funded startups typically offer full health coverage & paid meals but unlike large tech corporations they don’t typically offer 401(k)’s, spending accounts, retirement, etc.
  • Startups will typically not cover relocation costs. They will typically cover visas for international hires, but the visa process is complicated.
  • Startups offer private stock shares or options (which have a high variance on their value) and the excitement of working on a smaller & faster team that directly impacts the company as a whole.


TLDR – The full compensation package difference between a large tech corporation and high growth startup is not as drastic as most people believe.


5 comments

  1. sebastian serrano   January 5, 2012

    I will add that join a high growth startup is the easiest way to get to the top management of an organization, which compared to the corporate world could take years of hard work (if happens).

    -Sebastian

  2. Adam   January 6, 2012

    For clarification, is $M’s supposed to mean thousands or millions?

  3. Founders   January 8, 2012

    @Adam – Millions

  4. Christopher Erckert   January 11, 2012

    Are these numbers for programing talent only or all spectrums of job junctions?

  5. Founders   January 11, 2012

    @Christopher – should have specified that but this is for engineers, designers, and product managers. Other business roles might have a higher variance

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