Glossary
Plain-English definitions for the terms that tend to trip people up in the documents SalaryCheckanalyzes. Each one includes real examples and why it matters when you're making a decision.
Base Salary
Base salary is the fixed annual cash compensation you earn from your job, before bonuses, equity, or benefits.
Cost of Living Adjustment
A cost of living adjustment (COLA) is a raise designed to offset inflation so your real purchasing power holds steady.
Equity Grant
An equity grant is company stock or stock options awarded to an employee, usually vesting over several years.
Market Rate
Market rate is the prevailing pay for a given role, level, and location based on actual hiring and retention data.
Merit Increase
A merit increase is a raise tied to individual performance, typically delivered during the annual review cycle.
Pay Band
A pay band is the defined salary range for a given role and level inside a company.
RSU
A restricted stock unit (RSU) is a promise to deliver shares of company stock after vesting conditions are met.
Sign-on Bonus
A sign-on bonus is a one-time payment given when you join a company, usually to offset unvested equity you left behind or to close an offer gap.
Total Compensation
Total compensation is the full annualized value of your pay package: base salary plus bonus, equity vesting, 401(k) match, and sometimes benefits.
Variable Pay
Variable pay is compensation tied to performance — bonuses, commissions, or performance-based equity — rather than guaranteed base salary.