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How much FAANG ACTUALLY pays software engineers in 2022 (+ Microsoft)
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Feb 6, 2024
The video "How much FAANG ACTUALLY pays software engineers in 2022 (+ Microsoft)" likely provides insights into the salary ranges and compensation packages offered by major tech companies, commonly referred to as FAANG (Facebook, Amazon, Apple, Netflix, Google), as well as Microsoft. It may delve into various factors influencing software engineer salaries, including experience level, location, job role, and company performance. Additionally, the video may discuss trends in tech industry salaries, negotiation tips, and benefits beyond base pay, such as stock options, bonuses, and perks. By presenting real-world data and analysis, the video aims to inform software engineers about their earning potential and help them make informed decisions about their careers.
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0:00
Who doesn't want to be a cool software engineer geeking out at a fang company making more than
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some doctors without spending 10 to 14 years in school and residency? Or if you're already a
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software engineer, how does your pay compare to fang engineers? And by fang, I'm not just
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talking about Facebook, Apple, Amazon, Netflix, and Google. If you add in all the other high-paying
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tech giants, we'd have to use a worse acronym. To make that point more clear, this video will
0:25
also include Microsoft salaries. And with the way things are going in Netflix, maybe we'll end up
0:30
with the new acronym anyways. So let's get started with Facebook. We'll be starting with the entry
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level positions and working our way to the highest level positions on the individual contributor path
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So for Facebook, that entry level position is going to be E3. And that person makes a total
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compensation of $184,828 with $122,546 of that coming from salary, $41,727 in stock, and a $20,555 bonus
1:03
Level E4 has a total compensation of $266,612. The salary is $163,251 with stock worth $81,186
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and a $22,175 bonus. As a quick disclaimer, these estimates are sourced from levels.fyi
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You can find compensation for a ton of other companies there, so be sure to check that site out
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Level E5 has a total compensation of $387,073. A salary of $197,245. They get $155,512 in stock
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and $34,316 in bonus. Level E6 total compensation $574,556. Salary $230,952. Stock $294,860. Bonus $48,744
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It's also important to remember that the higher you go, the more responsibilities you have in
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these positions usually require you to exert more influence across the organization
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impacting things beyond just your team. Facebook's Level E7 gets a total compensation of $920,233
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with a salary of $273,311, $573,344 worth of stock, and $73,578 for the bonus
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Facebook's Level E8 has a total compensation of $1,611,850. $315,500 of that for their salary
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$1,210,000 worth of stock, and $86,350 for the bonus. For Facebook's highest level E9
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there was a whopping total compensation of $4.49 million with $350,000 of that for the salary
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$4 million worth of stock, and a bonus worth $140,000. So insane
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Most software engineers end up in the senior to upper senior levels
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with only a few of them actually making it to the highest levels of the individual contributor track
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This means that the sample sizes for compensation get smaller or non-existent. One of the reasons
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for this is that there are so few engineers in these levels that it's pretty hard to share
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your compensation and remain anonymous. Now let's look at salaries for software engineers at Apple
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Apple's ICT2 junior software engineers take home an average of $162,496 of total compensation
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with a salary of $124,472, $24,424 worth of stock, and a bonus of $13,600
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The ICT3 software engineer has a total compensation of $218,962 with $147,782 coming from
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salary, $53,903 coming from stocks, and $17,277 in bonuses. ICT4 senior software engineer makes
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$316,504 with $185,086 coming from salary, $106,316 from stock, and $25,102 in bonuses
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It's worth noting that for most large publicly traded tech companies that offer stocks
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as you go up the compensation ladder, you hit a point where your salary plateaus
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and a higher percentage of your compensation comes from stocks. Level ICT5 makes $446,470 total compensation, $218,107 from salary, $190,567 in stock
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and $37,796 in bonuses. Level ICT6 makes $697,695 total compensation with $275,667
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coming from salary, $370,556 from stocks, and $51,472 in bonuses
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Also, in addition to higher on RSUs, a lot of companies give annual stock refreshers and
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promotion refreshers that can overlap and create a really large amount of unvested stock. Apple has
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a distinguished engineer position that had two salaries listed, one for $1,175,000 and the other
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for $2,160,000. For that upper figure, that person reported $1.5 million in stock. That's a pretty
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big gap, but if we take their averages, the salary would be $395,000, stock $1.1 million
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and bonuses $172,500. The highest levels at Apple are going to be the senior distinguished engineer
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and an engineering fellow, and there was not any data for either of those
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Before we move on to Amazon, Netflix, Google, and Microsoft salaries, there are some things to keep
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in mind. These averages are based off of historical data that do provide valuable insights
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but there are some important factors influencing these averages that you should understand
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For example, most of the large companies adjust salary based on where you live. With
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bank companies heavily concentrated in the Bay Area and other tech metros
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the total compensation also reflects a significantly higher cost of living, and these numbers can vary widely across other office locations. To put this in perspective
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my co-workers in the Bay Area or in New York might be making a ton more money than me
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but rent might be $3,000 for a tiny apartment for them, but where I live
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that would buy you a good-sized house with a nice yard. Next up, Amazon
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Amazon's Software Development Engineer 1 has a total compensation of $168,291, with a salary of $127,872, $22,064 from stock, and $18,355 bonuses. The Software Development
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Engineer 2 makes $237,279 total compensation, with $156,515 coming from salary, $64,578
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coming from stocks, and $16,186 in bonuses. The Software Development Engineer 3, or Senior
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Software Development Engineer, makes $342,649 total compensation, with $172,926 salary, $155,796
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in stock, and $13,927 in bonuses. The salaries look tempting, but at my last company, a ton of
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management was recruited from Amazon, and they tried to inject the Jeff Bezos document culture
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and the Amazon penny-pinching culture, which was quite a turnoff for a lot of engineers
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Salary isn't everything. It's also important to really look for a culture that will be good for
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your own interests and lifestyle. They have a Principal Software Development Engineer that
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makes $597,507, and $186,344 of that is the salary, but they have a much higher number of
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stocks at $378,907, with a $32,256 bonus. And this is where we start to see that the stocks
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really start outweighing the salaries. They also have a Senior Principal Software Development Engineer
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that makes $968,125 in total compensation, with a salary of $243,125, and a whopping $725,000
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in stock, but zero bonuses. And then up from there is the Distinguished Engineer that comes in at
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$960,000, so pretty close to the Senior Principal Software Development Engineer, with a salary of
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$160,000, so lower than the Senior Principal Software Development Engineer, but more stocks
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$800,000 worth of stocks, and zero bonus. Netflix is clearly focused on hiring senior engineers
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and they are known for paying 100% salary rather than breaking it down into stocks and bonuses
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though it does appear that may be changing, as some of the recent new grad engineers
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have listed stocks as part of their compensation. For the Netflix new grad software engineer
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it wasn't super clean, so I had to actually go through the list and come up with my own averages
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So the total compensation is going to be $187,900 on average, with an average salary of $167,600
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And for those that did receive stock, the average was $24,000, and for those that received bonuses
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the average was $41,500, but it should be noted that there were a lot of them without any stock
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or without any bonuses, so this definitely looks like it's something newer that they are having
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their stock. Senior Software Engineer, total compensation $493,164, with $493,164 of that
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coming from salary, zero stock, and zero bonus. Even though Netflix doesn't do RSUs like the
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other tech companies, they do have ways for employees to use part of their salary to buy
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stock options at a discount. The king of all companies, Google. Software Engineer 2, which is a new grad software engineer, has a total compensation of $190,859
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with a salary of $132,538, with $37,873 for stock, and a bonus of $20,448
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Software Engineer 3 has a total compensation of $268,751, with $160,606 of that coming from salary
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$80,058 in stock, and $28,087 in bonuses. Senior Software Engineer has a total compensation of
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$358,371, with a base salary of $190,494, and $131,860 in stock, $36,017 in bonuses
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Google is at the top of a lot of software engineers' lists, and they do pay well
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but I'm not sure we can totally trust these numbers. The last couple of years have been
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a real ripper for some serious bidding wars for talent, and it will be a while before those
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numbers lead to big movement in the averages on Levels.FYI. Previous year's salaries can really
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drag down that average. We also have the recession fears weighing down the current market, but for
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several of the larger fang-type companies, I would guess that salaries for each level are actually
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getting closer to the next level up. A Google Staff Software Engineer makes $497,133
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with $225,646 of that in salary, $215,873 in stock, and a good bonus of $55,614
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A Senior Staff Software Engineer makes $703,605, with $265,915 of that in salary, $355,729 of that
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in stock, and a bonus of $81,961. The Principal Engineer has a total compensation of $1,062,222
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The base salary is $331,333, with $612,361 worth of stock, and a bonus of $118,528
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which is more than a lot of software engineers' salaries outside of the Bay Area, just as a bonus
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The Distinguished Engineer position did not have any data, but the highest level Google Fellow
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had $3.6 million total compensation, with $600,000 of that being salary, $3 million in stock
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and zero bonuses. Microsoft is really interesting. They have a ton of levels. We'll be looking at
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59 through 80, but we're going to focus on the seven main levels without all the other micro
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steps. Just know that Microsoft is much more granular, which likely means that promotions
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may be more frequent, but also more incremental in compensation increases. Microsoft Level 59
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Software Development Engineer has a total compensation of $159,232, and $111,362 of that
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is from salary, with $28,740 worth of stock, and a $19,130 bonus. We'll skip Level 60 and go to 61
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Software Development Engineer 2, with a total compensation of $180,710, and that base salary
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is $135,641, with $26,671 in stock and $18,398 in bonus. We'll skip 62 and go to Level 63
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Senior Software Development Engineer, with a total compensation of $222,746. $162,512 of that
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is salary, $35,934 is stock, and $24,300 is the bonus. We'll skip Level 64 and go to 65
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the Principal Software Development Engineer, with a total compensation of $299,748. Base salary is
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$195,441. They get $61,707 in stock and a bonus of $42,600. Let's skip Level 66 and 67. We're going
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to go to Level 68, which is Partner, that makes a whopping $846,550, with the salary of $278,800
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stock worth $408,200, and a bonus of $159,550. We'll skip 69 and go to Level 70, the Distinguished
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Engineer, who gets a total compensation of $945,000. $290,000 of that is in salary, $487,500
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in stock, and a bonus of $127,500. Fellow position did not have any data. I mentioned
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compensation disparity between locations in Silicon Valley and those in other cities when
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working for the same company. If you want to know what's possible outside the major tech hubs
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watch this video where I share my job progression going from a construction worker to software
16:50
engineer at a large tech company. Thanks for watching, and I'll see you in the next one. Lates
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