Should I leave Small Company for MegaCorp?
Should I leave Small Company for MegaCorp?
Hi All
I am in IT (Solutions/Data Engineering.) 44 yo. LCOL/MCOL area.
I have been "head-hunted" by MegaCorp. MegaCorp is a top Fortune company and is in the business of both brick and mortar and some online retail/pickup. They have offered me a 100% remote position so relo is not a factor. I would probably have to visit the mothership occasionally, but travel should be very minimal.
I'm currently employed at a small company with about 400 FT employees, plus 100 or so mostly offshore contract IT workers. I was also head-hunted by this company, and have been here about 1.5 years. Our business has been greatly impacted by COVID and we laid off about 25% of our workforce last year. My specific team was not affected, but IT has had to augment staff with contractors rather than FT hires. Things have stabilized somewhat, but we do a lot of business in Asia and EMEA; plus our business is subject to government lockdowns etc. Countries in Asia and EMEA are wrestling with lockdowns again. Since lockdowns killed our business in 2020, they could continue to hurt us.
Financial Background
I have been a Boglehead for 10-12 years or so, but I really started maxing out tax-deferred accounts about 2 or 3 years ago. DW has a stable state university job, maxes all accounts but her 403b (comes close), and also is vested in a state pension plan. We auto-save about 50% of our yearly income into tax-advantaged and taxable accounts. Current combined income about 200k. No children.
Our Rough Financial Calcs
Tax-Advantaged Svgs: About 750k (Nearly all Vanguard Target-Date Funds)
Taxable Svgs: 110,000 (About 65% in VTMFX and ITOT, rest is CDs/Cash)
Home Equity: 160k or so
No Debt except for 1 home mortgage (170k @ 2.375)
Current Job
Base: 125k
Yearly Bonus: 7-9% (Did not get this in 2020, MIGHT get it in 2021, not looking great though)
Company 401K Contribution: 12% (Outright contribution)
Initial Offer (all in writing)
Total Comp: $170,400
Base: 135k
Yearly Bonus: 23k, but can go up and down company-wide. For 2021, the Bonus company-wide was 200%. e.g. I would have received 46k.
Yearly Stock Grant: $12,500, 1 year vesting.
So in 2021 my total "theoretical" comp would have been something like 193k. I never thought I'd have a chance to make that kind of money...
I have asked for more Base, the recruiter indicated it could be possible (or perhaps a signing bonus, or both) and am waiting to hear back.
At MegaCorp, 401k Match is 5% + $1000, eligible for match after 1 year employed. After 5yrs match is 5% + $2000. 401k is through a reputable, well-known financial firm discussed frequently on this forum.
Reasons to NOT TAKE the job
1) Lack of employer 401k contribution for a year (plus lower ongoing 401k contributions overall). I would miss about 15k tax-advantaged the next year, and roughly 6% ongoing afterwards. This is my major hang-up with the offer, and I have brought it up to the recruiter and is why I am trying to negotiate more base, or a signing bonus to alleviate this.
Would also lose this year's possible bonus at my current job.
2) Offered base pretty close to my current base... Bonus and Stock grants are nice, but stuff happens and that's not guaranteed. If things go sideways at MegaCorp, I could end up with a an overall paycut after taking this job. I'm probably facing an overall paycut for close to a year until bonus time comes due to the lack of 401k match, unless they come up on the base and offer a signing bonus.
3) Usual uncertainty with new job, etc.
Reasons to TAKE the job
1) As you can see there is a lot of potential upside here with the Bonuses and Stock grants... (Not guaranteed, I know)
2) Uncertainty and risk of hanging out at my current company and going through another year without bonuses, merit increases, or worse getting a pink-slip. We're hiring IT contractors left and right. I am managing two teams of contractors in addition to doing technical work at this point, but I am not a manager. I have been vaguely promised to be elevated to management, but there are supposedly HR Roadblocks. I forced the issue a few weeks ago with my manager after I was asked to take on managing another team of contractors. I later received some more assurances about promotion happening at the beginning of the new FY, but they are not concrete and I still haven't seen a new job description for my future position or anything like that. I've been getting talk about how the grand-boss is working on it. Sometimes I wonder if I am on borrowed time.
I'm working 10-12 hours every day and I'm starting to feel it. I am also doing a lot of knowledge transfer to contractors... I have been worried for awhile about this.
3) Career growth and upside at MegaCorp. I have a heavy data background and currently work in Cloud tech, which is pretty in-demand now. I get pings on LinkedIn from recruiters pretty often, sometimes 2 or 3 a week. This is how MegaCorp found me. MegaCorp is shifting to the cloud and needs people with my skills. I can grow skills at MegaCorp further; my skills are languishing now as I've been put into a quasi-management role where I have no authority, but lots of accountability.
4) Had great conversations with team and hiring director... We're on the same page about a lot of technical and non-technical stuff. Everyone seems very laid back but professional (which is my style) and big on trust, which is also important to me.
Bottom line
I'm still young enough to parachute into MegaCorp and do some damage.... But before long I might be at "that age" where bias starts to come in. However I have cloud experience and will be helping MegaCorp transition to the cloud, so those skills should at least alleviate some future age bias.
The ultimate goal is that DW and I want to be FI in the next 10-12 years or sooner and possibly RE. To do this we need to grow taxable savings to bridge the gap to age 59 1/2 (Which we are actively doing.) I am thinking that MegaCorp will help me reach that goal more quickly.
I'm leaning towards punching out of my current job and parachuting into MegaCorp, but any thoughts would appreciated.
I am in IT (Solutions/Data Engineering.) 44 yo. LCOL/MCOL area.
I have been "head-hunted" by MegaCorp. MegaCorp is a top Fortune company and is in the business of both brick and mortar and some online retail/pickup. They have offered me a 100% remote position so relo is not a factor. I would probably have to visit the mothership occasionally, but travel should be very minimal.
I'm currently employed at a small company with about 400 FT employees, plus 100 or so mostly offshore contract IT workers. I was also head-hunted by this company, and have been here about 1.5 years. Our business has been greatly impacted by COVID and we laid off about 25% of our workforce last year. My specific team was not affected, but IT has had to augment staff with contractors rather than FT hires. Things have stabilized somewhat, but we do a lot of business in Asia and EMEA; plus our business is subject to government lockdowns etc. Countries in Asia and EMEA are wrestling with lockdowns again. Since lockdowns killed our business in 2020, they could continue to hurt us.
Financial Background
I have been a Boglehead for 10-12 years or so, but I really started maxing out tax-deferred accounts about 2 or 3 years ago. DW has a stable state university job, maxes all accounts but her 403b (comes close), and also is vested in a state pension plan. We auto-save about 50% of our yearly income into tax-advantaged and taxable accounts. Current combined income about 200k. No children.
Our Rough Financial Calcs
Tax-Advantaged Svgs: About 750k (Nearly all Vanguard Target-Date Funds)
Taxable Svgs: 110,000 (About 65% in VTMFX and ITOT, rest is CDs/Cash)
Home Equity: 160k or so
No Debt except for 1 home mortgage (170k @ 2.375)
Current Job
Base: 125k
Yearly Bonus: 7-9% (Did not get this in 2020, MIGHT get it in 2021, not looking great though)
Company 401K Contribution: 12% (Outright contribution)
Initial Offer (all in writing)
Total Comp: $170,400
Base: 135k
Yearly Bonus: 23k, but can go up and down company-wide. For 2021, the Bonus company-wide was 200%. e.g. I would have received 46k.
Yearly Stock Grant: $12,500, 1 year vesting.
So in 2021 my total "theoretical" comp would have been something like 193k. I never thought I'd have a chance to make that kind of money...
I have asked for more Base, the recruiter indicated it could be possible (or perhaps a signing bonus, or both) and am waiting to hear back.
At MegaCorp, 401k Match is 5% + $1000, eligible for match after 1 year employed. After 5yrs match is 5% + $2000. 401k is through a reputable, well-known financial firm discussed frequently on this forum.
Reasons to NOT TAKE the job
1) Lack of employer 401k contribution for a year (plus lower ongoing 401k contributions overall). I would miss about 15k tax-advantaged the next year, and roughly 6% ongoing afterwards. This is my major hang-up with the offer, and I have brought it up to the recruiter and is why I am trying to negotiate more base, or a signing bonus to alleviate this.
Would also lose this year's possible bonus at my current job.
2) Offered base pretty close to my current base... Bonus and Stock grants are nice, but stuff happens and that's not guaranteed. If things go sideways at MegaCorp, I could end up with a an overall paycut after taking this job. I'm probably facing an overall paycut for close to a year until bonus time comes due to the lack of 401k match, unless they come up on the base and offer a signing bonus.
3) Usual uncertainty with new job, etc.
Reasons to TAKE the job
1) As you can see there is a lot of potential upside here with the Bonuses and Stock grants... (Not guaranteed, I know)
2) Uncertainty and risk of hanging out at my current company and going through another year without bonuses, merit increases, or worse getting a pink-slip. We're hiring IT contractors left and right. I am managing two teams of contractors in addition to doing technical work at this point, but I am not a manager. I have been vaguely promised to be elevated to management, but there are supposedly HR Roadblocks. I forced the issue a few weeks ago with my manager after I was asked to take on managing another team of contractors. I later received some more assurances about promotion happening at the beginning of the new FY, but they are not concrete and I still haven't seen a new job description for my future position or anything like that. I've been getting talk about how the grand-boss is working on it. Sometimes I wonder if I am on borrowed time.
I'm working 10-12 hours every day and I'm starting to feel it. I am also doing a lot of knowledge transfer to contractors... I have been worried for awhile about this.
3) Career growth and upside at MegaCorp. I have a heavy data background and currently work in Cloud tech, which is pretty in-demand now. I get pings on LinkedIn from recruiters pretty often, sometimes 2 or 3 a week. This is how MegaCorp found me. MegaCorp is shifting to the cloud and needs people with my skills. I can grow skills at MegaCorp further; my skills are languishing now as I've been put into a quasi-management role where I have no authority, but lots of accountability.
4) Had great conversations with team and hiring director... We're on the same page about a lot of technical and non-technical stuff. Everyone seems very laid back but professional (which is my style) and big on trust, which is also important to me.
Bottom line
I'm still young enough to parachute into MegaCorp and do some damage.... But before long I might be at "that age" where bias starts to come in. However I have cloud experience and will be helping MegaCorp transition to the cloud, so those skills should at least alleviate some future age bias.
The ultimate goal is that DW and I want to be FI in the next 10-12 years or sooner and possibly RE. To do this we need to grow taxable savings to bridge the gap to age 59 1/2 (Which we are actively doing.) I am thinking that MegaCorp will help me reach that goal more quickly.
I'm leaning towards punching out of my current job and parachuting into MegaCorp, but any thoughts would appreciated.
Last edited by Fogbank on Sat Apr 24, 2021 8:27 am, edited 1 time in total.
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Re: Should I leave Small Company for MegaCorp?
Yes you should change jobs. Mega Corp will allow you to work on bigger problems and they likely have more toys to play with. I’d make sure to kick the tires to understand the tech stack and data maturity so you know what you’re getting into.
You should also ask for a signing bonus of at least $10,000.
You should also ask for a signing bonus of at least $10,000.
- SmileyFace
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Re: Should I leave Small Company for MegaCorp?
Seems like a no-brainer to me to take the job.
Do they have an ESPP as well? That would be another cherry on top.
Do they have an ESPP as well? That would be another cherry on top.
Re: Should I leave Small Company for MegaCorp?
Change jobs. This is a close to no-brainer, and definitely a no-brainer if they up the offer. Congrats!
Re: Should I leave Small Company for MegaCorp?
As someone that spent 30 years in MegaCorp and has now transitioned to a smaller company, I would absolutely recommend going to megacorp for some time. The skills I learned there have helped me in my new role. Don't get me wrong, i love this smaller company and the impact that i am having. I just learned all of those skills in the larger company. My current smaller company is quite progressive in IT meaning they have good systems. I do see tons of opportunity for improvement, however through the lens of my previous F 500 company.
I am in my late 50s and my skills and connections from my first company got me here. Granted this is a one year gig but that is what i wanted. I have already been asked to stay on but I am leaning toward retirement to do other things i have always wanted to do.
It is hard to get into Megacorp later in your 50s as the Bias will be there. It's not hard to leave Megacorp to a smaller company.
either way it should be a great experience and catapult you to greatness there or in your next assignment thereafter.
I am in my late 50s and my skills and connections from my first company got me here. Granted this is a one year gig but that is what i wanted. I have already been asked to stay on but I am leaning toward retirement to do other things i have always wanted to do.
It is hard to get into Megacorp later in your 50s as the Bias will be there. It's not hard to leave Megacorp to a smaller company.
either way it should be a great experience and catapult you to greatness there or in your next assignment thereafter.
Re: Should I leave Small Company for MegaCorp?
Thank you. I was thinking that I would like them to come up at least another 15k with some combination of Base + Signing Bonus. I don't think 10k Signing Bonus is unreasonable at all for MegaCorp.regularguy455 wrote: ↑Sat Apr 24, 2021 6:03 am Yes you should change jobs. Mega Corp will allow you to work on bigger problems and they likely have more toys to play with. I’d make sure to kick the tires to understand the tech stack and data maturity so you know what you’re getting into.
You should also ask for a signing bonus of at least $10,000.
Yes they do.SmileyFace wrote: ↑Sat Apr 24, 2021 6:05 am Seems like a no-brainer to me to take the job.
Do they have an ESPP as well? That would be another cherry on top.
Thank you. I am definitely starting to think this. I think being a boglehead I am risk-averse and have a fixation on the excellent retirement contribution I currently have... so I need help stepping back and taking in the big picture.
Great advice, thanks for sharing your experience. I like this small company too, believe in its mission and was very excited when I got here, but global events have put it in a bad place. Who knows, maybe I can come back one day when they have straightened things out and help them again. I will be sure not to burn any bridges if/when I leave.1moreyr wrote: ↑Sat Apr 24, 2021 7:25 am As someone that spent 30 years in MegaCorp and has now transitioned to a smaller company, I would absolutely recommend going to megacorp for some time. The skills I learned there have helped me in my new role. Don't get me wrong, i love this smaller company and the impact that i am having. I just learned all of those skills in the larger company. My current smaller company is quite progressive in IT meaning they have good systems. I do see tons of opportunity for improvement, however through the lens of my previous F 500 company.
I am in my late 50s and my skills and connections from my first company got me here. Granted this is a one year gig but that is what i wanted. I have already been asked to stay on but I am leaning toward retirement to do other things i have always wanted to do.
It is hard to get into Megacorp later in your 50s as the Bias will be there. It's not hard to leave Megacorp to a smaller company.
either way it should be a great experience and catapult you to greatness there or in your next assignment thereafter.
- ClevrChico
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Re: Should I leave Small Company for MegaCorp?
You should strongly consider the Megacorp job. They have their own issues, but they tend to be much better for long-term careers than Smallcorp.
You should be able to get a signing bonus to help alleviate the initial 401k differences. A $5k bonus is typical without even asking, and you may be able to negotiate more.
You should be able to get a signing bonus to help alleviate the initial 401k differences. A $5k bonus is typical without even asking, and you may be able to negotiate more.
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Re: Should I leave Small Company for MegaCorp?
Is the “theoretical” comp $193k, not the $183k you mentioned?
$135k base, $46k bonus, and $12.5k stock is $193K.
At Megacorps, it is more the norm to have a significant portion of your compensation in bonuses, stock, etc., so that is really not a negative in this situation.
Another vote for you to take the Megacorp job and to ask for a signing bonus.
$135k base, $46k bonus, and $12.5k stock is $193K.
At Megacorps, it is more the norm to have a significant portion of your compensation in bonuses, stock, etc., so that is really not a negative in this situation.
Another vote for you to take the Megacorp job and to ask for a signing bonus.
Re: Should I leave Small Company for MegaCorp?
You're right Thanks.ModifiedDuration wrote: ↑Sat Apr 24, 2021 8:20 am Is the “theoretical” comp $193k, not the $183k you mentioned?
$135k base, $46k bonus, and $12.5k stock is $193K.
At Megacorps, it is more the norm to have a significant portion of your compensation in bonuses, stock, etc., so that is really not a negative in this situation.
Another vote for you to take the Megacorp job and to ask for a signing bonus.
Re: Should I leave Small Company for MegaCorp?
Definitely take the job. I started my career at a small company then switched to a megacorp. The benefits of the small company is that you get to wear a lot of hats and see/participate in parts of the business you normally wouldn't have access to in a megacorp. The benefits of the megacorp is that they will have business processes in place that the small companies just don't have. Eventually you'll have the opportunity to take all the skills you have and either go back to a smaller company in a leadership function, or continue to climb the ladder at a megacorp.
I would just warn you about the bonus...bonuses are bonuses. When I took my current job they had a similar bonus structure. X% target incentive but it can go up to 200% and then they showed me the charts of how they paid out 200% prior two years. Of course my first year there they paid out 0%. Then the following two years they paid out 200%. This year will probably be in the 100-150% range.
I would just warn you about the bonus...bonuses are bonuses. When I took my current job they had a similar bonus structure. X% target incentive but it can go up to 200% and then they showed me the charts of how they paid out 200% prior two years. Of course my first year there they paid out 0%. Then the following two years they paid out 200%. This year will probably be in the 100-150% range.
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Re: Should I leave Small Company for MegaCorp?
I'll be "that guy" - you imply "headhunted" as in you were a passive job hunter. You should apply to all the top tech companies and see what is out there. The comp package (especially stock) seems very low.
Obviously the new offer is still a better choice than the small company job. The only financial reason to work at a small company is you have significant equity stake that may turn into something in the future. Megacorps are eating the world, so there is no future in small companies that have no exit plan.
(source: technology job for 15 years in startups/small companies and then 15 years at megacorps)
Obviously the new offer is still a better choice than the small company job. The only financial reason to work at a small company is you have significant equity stake that may turn into something in the future. Megacorps are eating the world, so there is no future in small companies that have no exit plan.
(source: technology job for 15 years in startups/small companies and then 15 years at megacorps)
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Re: Should I leave Small Company for MegaCorp?
No question whatsoever take the offer. The equity comp is probably reason enough. For me, I took a Megacorp job 20 years ago at age 34 and the wealth added to my comp via stock options and RSUs has moved up my retirement plan from age 63 to age 55 (next year) while putting my 3 kids through college to boot.
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Re: Should I leave Small Company for MegaCorp?
Agree.fortunefavored wrote: ↑Sat Apr 24, 2021 8:55 am I'll be "that guy" - you imply "headhunted" as in you were a passive job hunter. You should apply to all the top tech companies and see what is out there. The comp package (especially stock) seems very low.
You are leaving money on the table by being passive and not seeking out opportunities.
Re: Should I leave Small Company for MegaCorp?
From a slightly different perspective, I think COVID helped highlight what companies are ready for the future and what companies are "yesterday's" companies. I recently retired from an industry that's had more downs than ups for 15+ years and was slammed by COVID. It became a worse and worse place to work with heavier and heavier layoffs, fewer growth opportunities, shrinking benefits, more and more jobs off-shored.
So switching to a firm less impacted might be really good long term, regardless of any short term differences. If that turns out to be wrong and Smallcorp does well and Megacorp worse than hoped, typically Smallcorps like people with some Megacorp background.
So switching to a firm less impacted might be really good long term, regardless of any short term differences. If that turns out to be wrong and Smallcorp does well and Megacorp worse than hoped, typically Smallcorps like people with some Megacorp background.
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Re: Should I leave Small Company for MegaCorp?
Comp package is low for someone able to be fully remote and lives in a LCOL? Seems high to me. I'd take the job. You can always job shop later, but this offer seems way too good to pass up, IMHO.fortunefavored wrote: ↑Sat Apr 24, 2021 8:55 am I'll be "that guy" - you imply "headhunted" as in you were a passive job hunter. You should apply to all the top tech companies and see what is out there. The comp package (especially stock) seems very low.
Obviously the new offer is still a better choice than the small company job. The only financial reason to work at a small company is you have significant equity stake that may turn into something in the future. Megacorps are eating the world, so there is no future in small companies that have no exit plan.
(source: technology job for 15 years in startups/small companies and then 15 years at megacorps)
20% VOO | 20% VXUS | 20% AVUV | 20% AVDV | 20% AVES
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Re: Should I leave Small Company for MegaCorp?
Equity awards don't vary greatly by COL in my experience. I'd expect 25% to 100% of my annual salary in an equity grant depending on level/role.Nathan Drake wrote: ↑Sat Apr 24, 2021 2:32 pmComp package is low for someone able to be fully remote and lives in a LCOL? Seems high to me. I'd take the job. You can always job shop later, but this offer seems way too good to pass up, IMHO.fortunefavored wrote: ↑Sat Apr 24, 2021 8:55 am I'll be "that guy" - you imply "headhunted" as in you were a passive job hunter. You should apply to all the top tech companies and see what is out there. The comp package (especially stock) seems very low.
Obviously the new offer is still a better choice than the small company job. The only financial reason to work at a small company is you have significant equity stake that may turn into something in the future. Megacorps are eating the world, so there is no future in small companies that have no exit plan.
(source: technology job for 15 years in startups/small companies and then 15 years at megacorps)
I think they should take that job too, just that they should investigate elsewhere too if they are in a high demand position.
As someone else mentioned, they should also ask for a signing bonus. That's low hanging fruit.
Re: Should I leave Small Company for MegaCorp?
Easiest ‘should I take the job’ post I’ve seen in awhile. This is what I’d call a no brainer.
Re: Should I leave Small Company for MegaCorp?
Just one more thing.
Cultures in small company vs megacorp can be VASTLY different. I moved from 500 person company to a fortune 100 company and it was a hard to make the transition.
Cultures in small company vs megacorp can be VASTLY different. I moved from 500 person company to a fortune 100 company and it was a hard to make the transition.
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Re: Should I leave Small Company for MegaCorp?
Megacorp should offer a sign on bonus large enough make up for the loss of your current bonus. My megacorp did that for me.
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Re: Should I leave Small Company for MegaCorp?
I guess it depends on the company and role. I've heard of equity grants that high for Software Engineering at a top tech firm, but not necessarily for most IT type positions.fortunefavored wrote: ↑Sat Apr 24, 2021 3:04 pmEquity awards don't vary greatly by COL in my experience. I'd expect 25% to 100% of my annual salary in an equity grant depending on level/role.Nathan Drake wrote: ↑Sat Apr 24, 2021 2:32 pmComp package is low for someone able to be fully remote and lives in a LCOL? Seems high to me. I'd take the job. You can always job shop later, but this offer seems way too good to pass up, IMHO.fortunefavored wrote: ↑Sat Apr 24, 2021 8:55 am I'll be "that guy" - you imply "headhunted" as in you were a passive job hunter. You should apply to all the top tech companies and see what is out there. The comp package (especially stock) seems very low.
Obviously the new offer is still a better choice than the small company job. The only financial reason to work at a small company is you have significant equity stake that may turn into something in the future. Megacorps are eating the world, so there is no future in small companies that have no exit plan.
(source: technology job for 15 years in startups/small companies and then 15 years at megacorps)
I think they should take that job too, just that they should investigate elsewhere too if they are in a high demand position.
As someone else mentioned, they should also ask for a signing bonus. That's low hanging fruit.
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Re: Should I leave Small Company for MegaCorp?
ask yourself "are you running FROM the current job or To the new opportunity.
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Re: Should I leave Small Company for MegaCorp?
SWE is extra special, but regular "technical track" (devops, sre, big data, etc) are similar. Again at top firms. These threads always degrade into "those jobs don't exist!" - so I'll stop now. The original poster won't know unless they try.Nathan Drake wrote: ↑Sat Apr 24, 2021 4:15 pmI guess it depends on the company and role. I've heard of equity grants that high for Software Engineering at a top tech firm, but not necessarily for most IT type positions.fortunefavored wrote: ↑Sat Apr 24, 2021 3:04 pmEquity awards don't vary greatly by COL in my experience. I'd expect 25% to 100% of my annual salary in an equity grant depending on level/role.Nathan Drake wrote: ↑Sat Apr 24, 2021 2:32 pmComp package is low for someone able to be fully remote and lives in a LCOL? Seems high to me. I'd take the job. You can always job shop later, but this offer seems way too good to pass up, IMHO.fortunefavored wrote: ↑Sat Apr 24, 2021 8:55 am I'll be "that guy" - you imply "headhunted" as in you were a passive job hunter. You should apply to all the top tech companies and see what is out there. The comp package (especially stock) seems very low.
Obviously the new offer is still a better choice than the small company job. The only financial reason to work at a small company is you have significant equity stake that may turn into something in the future. Megacorps are eating the world, so there is no future in small companies that have no exit plan.
(source: technology job for 15 years in startups/small companies and then 15 years at megacorps)
I think they should take that job too, just that they should investigate elsewhere too if they are in a high demand position.
As someone else mentioned, they should also ask for a signing bonus. That's low hanging fruit.
Re: Should I leave Small Company for MegaCorp?
of course you have to get the job, since it doesn't sound like you have an offer yet, but I would tell them with the loss of bonus for 2021 and loss of 401K until you vest in their bonus structure, you are losing XX,000, if they can increase their base by half of that and signing bonus for other half, and they agree, I would take it. Sounds like smaller company could have a layoff coming and also megacorp will look good on your resume as you get older.
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Re: Should I leave Small Company for MegaCorp?
I would take the job.Fogbank wrote: ↑Sat Apr 24, 2021 5:46 am Hi All
I am in IT (Solutions/Data Engineering.) 44 yo. LCOL/MCOL area.
I have been "head-hunted" by MegaCorp. MegaCorp is a top Fortune company and is in the business of both brick and mortar and some online retail/pickup. They have offered me a 100% remote position so relo is not a factor. I would probably have to visit the mothership occasionally, but travel should be very minimal.
I'm currently employed at a small company with about 400 FT employees, plus 100 or so mostly offshore contract IT workers. I was also head-hunted by this company, and have been here about 1.5 years. Our business has been greatly impacted by COVID and we laid off about 25% of our workforce last year. My specific team was not affected, but IT has had to augment staff with contractors rather than FT hires. Things have stabilized somewhat, but we do a lot of business in Asia and EMEA; plus our business is subject to government lockdowns etc. Countries in Asia and EMEA are wrestling with lockdowns again. Since lockdowns killed our business in 2020, they could continue to hurt us.
Financial Background
I have been a Boglehead for 10-12 years or so, but I really started maxing out tax-deferred accounts about 2 or 3 years ago. DW has a stable state university job, maxes all accounts but her 403b (comes close), and also is vested in a state pension plan. We auto-save about 50% of our yearly income into tax-advantaged and taxable accounts. Current combined income about 200k. No children.
Our Rough Financial Calcs
Tax-Advantaged Svgs: About 750k (Nearly all Vanguard Target-Date Funds)
Taxable Svgs: 110,000 (About 65% in VTMFX and ITOT, rest is CDs/Cash)
Home Equity: 160k or so
No Debt except for 1 home mortgage (170k @ 2.375)
Current Job
Base: 125k
Yearly Bonus: 7-9% (Did not get this in 2020, MIGHT get it in 2021, not looking great though)
Company 401K Contribution: 12% (Outright contribution)
Initial Offer (all in writing)
Total Comp: $170,400
Base: 135k
Yearly Bonus: 23k, but can go up and down company-wide. For 2021, the Bonus company-wide was 200%. e.g. I would have received 46k.
Yearly Stock Grant: $12,500, 1 year vesting.
So in 2021 my total "theoretical" comp would have been something like 193k. I never thought I'd have a chance to make that kind of money...
I have asked for more Base, the recruiter indicated it could be possible (or perhaps a signing bonus, or both) and am waiting to hear back.
At MegaCorp, 401k Match is 5% + $1000, eligible for match after 1 year employed. After 5yrs match is 5% + $2000. 401k is through a reputable, well-known financial firm discussed frequently on this forum.
Reasons to NOT TAKE the job
1) Lack of employer 401k contribution for a year (plus lower ongoing 401k contributions overall). I would miss about 15k tax-advantaged the next year, and roughly 6% ongoing afterwards. This is my major hang-up with the offer, and I have brought it up to the recruiter and is why I am trying to negotiate more base, or a signing bonus to alleviate this.
Would also lose this year's possible bonus at my current job.
2) Offered base pretty close to my current base... Bonus and Stock grants are nice, but stuff happens and that's not guaranteed. If things go sideways at MegaCorp, I could end up with a an overall paycut after taking this job. I'm probably facing an overall paycut for close to a year until bonus time comes due to the lack of 401k match, unless they come up on the base and offer a signing bonus.
3) Usual uncertainty with new job, etc.
Reasons to TAKE the job
1) As you can see there is a lot of potential upside here with the Bonuses and Stock grants... (Not guaranteed, I know)
2) Uncertainty and risk of hanging out at my current company and going through another year without bonuses, merit increases, or worse getting a pink-slip. We're hiring IT contractors left and right. I am managing two teams of contractors in addition to doing technical work at this point, but I am not a manager. I have been vaguely promised to be elevated to management, but there are supposedly HR Roadblocks. I forced the issue a few weeks ago with my manager after I was asked to take on managing another team of contractors. I later received some more assurances about promotion happening at the beginning of the new FY, but they are not concrete and I still haven't seen a new job description for my future position or anything like that. I've been getting talk about how the grand-boss is working on it. Sometimes I wonder if I am on borrowed time.
I'm working 10-12 hours every day and I'm starting to feel it. I am also doing a lot of knowledge transfer to contractors... I have been worried for awhile about this.
3) Career growth and upside at MegaCorp. I have a heavy data background and currently work in Cloud tech, which is pretty in-demand now. I get pings on LinkedIn from recruiters pretty often, sometimes 2 or 3 a week. This is how MegaCorp found me. MegaCorp is shifting to the cloud and needs people with my skills. I can grow skills at MegaCorp further; my skills are languishing now as I've been put into a quasi-management role where I have no authority, but lots of accountability.
4) Had great conversations with team and hiring director... We're on the same page about a lot of technical and non-technical stuff. Everyone seems very laid back but professional (which is my style) and big on trust, which is also important to me.
Bottom line
I'm still young enough to parachute into MegaCorp and do some damage.... But before long I might be at "that age" where bias starts to come in. However I have cloud experience and will be helping MegaCorp transition to the cloud, so those skills should at least alleviate some future age bias.
The ultimate goal is that DW and I want to be FI in the next 10-12 years or sooner and possibly RE. To do this we need to grow taxable savings to bridge the gap to age 59 1/2 (Which we are actively doing.) I am thinking that MegaCorp will help me reach that goal more quickly.
I'm leaning towards punching out of my current job and parachuting into MegaCorp, but any thoughts would appreciated.
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- Posts: 171
- Joined: Wed Mar 06, 2019 4:54 pm
Re: Should I leave Small Company for MegaCorp?
I would take the job.Fogbank wrote: ↑Sat Apr 24, 2021 5:46 am Hi All
I am in IT (Solutions/Data Engineering.) 44 yo. LCOL/MCOL area.
I have been "head-hunted" by MegaCorp. MegaCorp is a top Fortune company and is in the business of both brick and mortar and some online retail/pickup. They have offered me a 100% remote position so relo is not a factor. I would probably have to visit the mothership occasionally, but travel should be very minimal.
I'm currently employed at a small company with about 400 FT employees, plus 100 or so mostly offshore contract IT workers. I was also head-hunted by this company, and have been here about 1.5 years. Our business has been greatly impacted by COVID and we laid off about 25% of our workforce last year. My specific team was not affected, but IT has had to augment staff with contractors rather than FT hires. Things have stabilized somewhat, but we do a lot of business in Asia and EMEA; plus our business is subject to government lockdowns etc. Countries in Asia and EMEA are wrestling with lockdowns again. Since lockdowns killed our business in 2020, they could continue to hurt us.
Financial Background
I have been a Boglehead for 10-12 years or so, but I really started maxing out tax-deferred accounts about 2 or 3 years ago. DW has a stable state university job, maxes all accounts but her 403b (comes close), and also is vested in a state pension plan. We auto-save about 50% of our yearly income into tax-advantaged and taxable accounts. Current combined income about 200k. No children.
Our Rough Financial Calcs
Tax-Advantaged Svgs: About 750k (Nearly all Vanguard Target-Date Funds)
Taxable Svgs: 110,000 (About 65% in VTMFX and ITOT, rest is CDs/Cash)
Home Equity: 160k or so
No Debt except for 1 home mortgage (170k @ 2.375)
Current Job
Base: 125k
Yearly Bonus: 7-9% (Did not get this in 2020, MIGHT get it in 2021, not looking great though)
Company 401K Contribution: 12% (Outright contribution)
Initial Offer (all in writing)
Total Comp: $170,400
Base: 135k
Yearly Bonus: 23k, but can go up and down company-wide. For 2021, the Bonus company-wide was 200%. e.g. I would have received 46k.
Yearly Stock Grant: $12,500, 1 year vesting.
So in 2021 my total "theoretical" comp would have been something like 193k. I never thought I'd have a chance to make that kind of money...
I have asked for more Base, the recruiter indicated it could be possible (or perhaps a signing bonus, or both) and am waiting to hear back.
At MegaCorp, 401k Match is 5% + $1000, eligible for match after 1 year employed. After 5yrs match is 5% + $2000. 401k is through a reputable, well-known financial firm discussed frequently on this forum.
Reasons to NOT TAKE the job
1) Lack of employer 401k contribution for a year (plus lower ongoing 401k contributions overall). I would miss about 15k tax-advantaged the next year, and roughly 6% ongoing afterwards. This is my major hang-up with the offer, and I have brought it up to the recruiter and is why I am trying to negotiate more base, or a signing bonus to alleviate this.
Would also lose this year's possible bonus at my current job.
2) Offered base pretty close to my current base... Bonus and Stock grants are nice, but stuff happens and that's not guaranteed. If things go sideways at MegaCorp, I could end up with a an overall paycut after taking this job. I'm probably facing an overall paycut for close to a year until bonus time comes due to the lack of 401k match, unless they come up on the base and offer a signing bonus.
3) Usual uncertainty with new job, etc.
Reasons to TAKE the job
1) As you can see there is a lot of potential upside here with the Bonuses and Stock grants... (Not guaranteed, I know)
2) Uncertainty and risk of hanging out at my current company and going through another year without bonuses, merit increases, or worse getting a pink-slip. We're hiring IT contractors left and right. I am managing two teams of contractors in addition to doing technical work at this point, but I am not a manager. I have been vaguely promised to be elevated to management, but there are supposedly HR Roadblocks. I forced the issue a few weeks ago with my manager after I was asked to take on managing another team of contractors. I later received some more assurances about promotion happening at the beginning of the new FY, but they are not concrete and I still haven't seen a new job description for my future position or anything like that. I've been getting talk about how the grand-boss is working on it. Sometimes I wonder if I am on borrowed time.
I'm working 10-12 hours every day and I'm starting to feel it. I am also doing a lot of knowledge transfer to contractors... I have been worried for awhile about this.
3) Career growth and upside at MegaCorp. I have a heavy data background and currently work in Cloud tech, which is pretty in-demand now. I get pings on LinkedIn from recruiters pretty often, sometimes 2 or 3 a week. This is how MegaCorp found me. MegaCorp is shifting to the cloud and needs people with my skills. I can grow skills at MegaCorp further; my skills are languishing now as I've been put into a quasi-management role where I have no authority, but lots of accountability.
4) Had great conversations with team and hiring director... We're on the same page about a lot of technical and non-technical stuff. Everyone seems very laid back but professional (which is my style) and big on trust, which is also important to me.
Bottom line
I'm still young enough to parachute into MegaCorp and do some damage.... But before long I might be at "that age" where bias starts to come in. However I have cloud experience and will be helping MegaCorp transition to the cloud, so those skills should at least alleviate some future age bias.
The ultimate goal is that DW and I want to be FI in the next 10-12 years or sooner and possibly RE. To do this we need to grow taxable savings to bridge the gap to age 59 1/2 (Which we are actively doing.) I am thinking that MegaCorp will help me reach that goal more quickly.
I'm leaning towards punching out of my current job and parachuting into MegaCorp, but any thoughts would appreciated.
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- Posts: 450
- Joined: Wed Jan 04, 2017 9:48 am
Re: Should I leave Small Company for MegaCorp?
I would take the job. I've been in the megacorp and small businesses before. The megacorp is always better. The support network, room for career growth, networking, employee benefits, etc. are just all better. I would 100% take the job. Even if you don't decide to stay long term, the name recognition will be a good springboard for the next job.