How Much Google ACTUALLY Pays Their Software Engineers | My Real Six Figure Tech Salary

Summary

In this informative video, the creator shares their journey as a software engineer at Google, revealing the substantial compensation package that includes base salary, bonuses, and equity. Highlighting their personal experience of earning over $1 million in just five years, they break down compensation levels for various roles and locations, offering insights into Google's pay structure and the potential for significant financial growth in the tech industry.

Takeaways

• 😀 Getting a job offer from Google felt like a dream come true, as it validated all the hard work.
• 💰 Google software engineers earn significant salaries, with compensation varying by location and level.
• 📈 Entry-level software engineers (L3) at Google have an average total compensation of $196,000.
• 🔄 Mid-level software engineers (L4) earn around $281,000 annually, while senior engineers (L5) make about $374,000.
• 🌟 Principal software engineers (L8) can make over $1 million per year.
• 📊 Total compensation at Google includes base salary, bonuses, and equity (GSUs), not just the salary.
• 💵 Base salary is paid in cash, distributed evenly across 24 paychecks per year.
• 💼 Bonuses include sign-on bonuses, relocation bonuses, performance bonuses, and peer recognition bonuses.
• 📈 Equity is given as Google Stock Units (GSUs) and vests over time, contributing significantly to total compensation.
• 📈 Google's stock performance can greatly enhance the value of equity compensation, driving up total earnings.

Q & A

What was the initial reaction of the speaker upon receiving their offer from Google?

The speaker felt like it was a dream come true, as it signified that all their hard work had finally paid off.

What is the main purpose of the video according to the speaker?

The main purpose of the video is to inform viewers about the compensation of software engineers at Google, inspire others by showing the potential earnings in this role, and to provide clarity on total compensation which the speaker initially found confusing.

How much is the base salary for an entry-level software engineer (Level 3) at Google according to the data from levels.fyi?

The base salary for an entry-level software engineer at Google is $139,000.

What are the three components of total compensation at Google?

The three components of total compensation at Google are base salary, bonus, and equity.

What is the average total compensation for a Level 4 (mid-level) software engineer at Google?

The average total compensation for a Level 4 software engineer at Google is $281,000.

How does the speaker describe their career progression at Google that contributed to earning over 1 million dollars?

The speaker joined Google as an entry-level engineer (L3), got promoted to mid-level (L4) after one and a half years, and has consistently received high performance reviews, which contributed to their total compensation increasing over the years.

What is the significance of equity in the total compensation package at Google?

Equity, in the form of restricted stock units or RSUs, can significantly increase an employee's total compensation, especially if the value of Google's stock increases over time.

How does the speaker explain the vesting schedule of equity grants at Google?

Equity grants at Google are typically vested over four years, with a certain number of stocks vesting each year. The value of these stocks can increase if the price of Google's stock goes up, which can result in higher payouts when the stocks vest.

What is the average total compensation for a Level 5 software engineer at Google?

The average total compensation for a Level 5 software engineer at Google is $374,000 per year.

What advice does the speaker give to those who want to work at Google?

The speaker advises to apply as soon as possible, emphasizing the potential earnings and career growth opportunities at Google.

How does the speaker address the issue of pay discrimination in the tech industry?

The speaker encourages salary transparency by sharing compensation figures on platforms like levels.fyi, which helps ensure fair pay for all employees.

Outlines

00:00

🤑 Earning a Million as a Google Software Engineer

The speaker, John, introduces the video by expressing his excitement about receiving a job offer from Google and the substantial compensation package that came with it. He clarifies that the video's purpose is to inform viewers about the potential earnings of a software engineer at Google, to inspire others, and to demystify the compensation structure. John shares that he has made over a million dollars in his career at Google, despite being early in his career and in his 20s. He emphasizes his background of not coming from a wealthy family and acknowledges his privilege. The video promises to delve into compensation figures at various Google software engineer levels, using data from levels.fyi, and to explain the total compensation structure beyond just salary.

05:01

💼 Breakdown of Google's Compensation Structure

This paragraph delves into the specifics of Google's compensation structure, which includes base salary, bonus, and equity. Base salary is explained as a regular cash payment made through paychecks, with examples provided to illustrate the distribution of annual pay across bi-weekly paychecks. Bonuses are detailed, including sign-on, relocation, peer bonuses, and annual performance-based bonuses, which are a percentage of the base salary. Equity is described as restricted stock units (RSUs) granted to employees, which vest over time and can significantly increase total compensation, especially if the stock price appreciates. The explanation includes an example of how RSUs are granted, vest, and their potential value increase over time, highlighting the importance of stock performance on overall earnings.

10:01

🚀 My Path to a Million-Dollar Career at Google

John recounts his career trajectory at Google, starting as an entry-level L3 software engineer in 2016 after college graduation. He discusses his promotion to mid-level L4 after one and a half years, which came with a compensation increase. John has consistently received high performance reviews, leading to further bumps in his total compensation. He attributes his ability to earn a million dollars to hard work, early promotion, and the substantial increase in Google's stock value over the years. The video concludes with John's advice to apply to Google as soon as possible to capitalize on the potential earnings and a call to action to watch his Q&A video on landing a job at Google.

Keywords

💡Google

Google is a multinational technology company specializing in Internet-related services and products. In the video, it is the employer of the narrator and the context for the discussion on compensation. The video script mentions Google as the place where the narrator works as a software engineer and has earned over 1 million dollars in their career.

💡Software Engineer

A software engineer is a professional who applies the principles of software engineering to the design, development, maintenance, testing, and evaluation of computer software. The video's theme revolves around the career of a software engineer at Google, discussing the substantial compensation one can earn in this role.

💡Compensation

Compensation refers to the payment or reward received by an employee for their work, which can include salary, bonuses, and benefits. The video provides an in-depth look at the compensation structure for software engineers at Google, emphasizing its significance in the narrator's career earnings.

💡Levels.fyi

Levels.fyi is a platform where tech employees anonymously share their total compensation. The video script uses this website as a source for real compensation figures, highlighting its role in ensuring fair pay and transparency in the tech industry.

💡Base Salary

Base salary is the fixed amount of money paid to an employee by an employer in exchange for work performed. The video explains that base salary is a significant component of total compensation at Google, with specific figures provided for different software engineer levels.

💡Equity

Equity in the context of employment often refers to ownership in the form of shares or stock options. The script explains that equity, specifically in the form of Google Stock Units (GSUs), is a substantial part of the compensation package for Google software engineers, with the potential to significantly increase total earnings.

💡Bonus

A bonus is a financial reward given to an employee in addition to their base salary, often based on performance or company profits. The video details different types of bonuses at Google, such as sign-on bonuses, relocation bonuses, and annual performance bonuses, which contribute to the total compensation of software engineers.

💡Performance Reviews

Performance reviews are evaluations of an employee's work performance over a certain period. In the video, performance reviews are mentioned as a determinant for the size of an employee's annual bonus and as a factor in promotions, directly impacting total compensation.

💡Promotion

Promotion refers to the advancement of an employee to a higher position or rank within a company. The script describes the narrator's promotion from an entry-level to a mid-level software engineer at Google, which resulted in an increase in total compensation.

💡Stock Vesting

Stock vesting is the process by which employees gain the right to acquire their equity grants over time. The video explains how stock vesting works at Google, noting that as the stock price increases, the value of vested equity can greatly enhance an employee's compensation.

💡Career Path

A career path refers to the trajectory of an individual's professional journey. The video outlines the narrator's career path at Google, from entry-level to potentially reaching a senior level, and how this progression contributed to earning over 1 million dollars.

Highlights

The speaker received a job offer from Google and experienced a dream come true moment with the compensation package.

Software engineers at Google are known for high earnings, sparking curiosity about average salaries.

The video aims to inform and inspire, not to brag, about the potential earnings of a Google software engineer.

The speaker clarifies that understanding total compensation at Google involves more than just salary.

The speaker has earned over 1 million dollars in their career at Google, achieved in their 20s and early career.

Levels.fyi is a platform where tech employees anonymously share their compensation to fight pay discrimination.

Pay at Google varies by location and job level, with higher pay in competitive markets like Silicon Valley.

Entry-level software engineers at Google (Level 3) can expect an average total compensation of $196,000.

Mid-level software engineers at Google (Level 4) have an average total compensation of $281,000.

Senior software engineers at Google (Level 5) receive an average total compensation exceeding $374,000.

Principal software engineers at Google (Level 8) can earn over one million dollars a year.

Google's total compensation includes base salary, bonus, and equity in the form of RSUs or GSUs.

Sign-on bonuses are provided to new hires as an incentive to join Google over other companies.

Annual bonuses at Google are tied to performance reviews and can vary based on individual performance.

Equity grants at Google vest over four years and can significantly increase an employee's total compensation.

The speaker's career path at Google involved promotions and high performance reviews, contributing to their million-dollar earnings.

The increase in Google's stock price over the years has greatly boosted the speaker's income.

The video encourages aspiring Google employees to apply sooner rather than later to capitalize on potential earnings.

Transcripts

when i got my offer from google and i

saw how much they're gonna pay me it

felt like a dream come true because all

my hard work finally paid off of course

i had some idea of what to expect

regarding my compensation but it hits

different when it's real and official

and in writing if you're watching this

video chances are you know that software

engineers at google make a lot of money

and it's true but how much is a lot and

what does the average software engineer

at google make if you want to know more

keep on watching

[Music]

before we begin i just want to give a

quick disclaimer that this video is not

meant to brag or to show off how much

money i made i'm making this video to be

informative how much money google

software engineers make is actually one

of the top questions i receive on my

comments and on my instagram secondly

i'm making this video to inspire others

by showing just how much money you can

actually make as a software engineer at

google because it's a life-changing

amount and thirdly it's a video i wish i

had because i actually didn't understand

my total compensation when i first

signed my offer letter it's something i

had to learn along the way with all that

in mind let's get back to the video hey

everyone i'm john your friend in tech if

you're new to my channel i'm a full-time

software engineer at google who loves

making videos to help and inspire others

about career tech and life if any of

that interests you consider subscribing

maybe

okay let's get straight into the point

of the video as you can tell from the

title i have earned over 1 million

dollars in my career as a software

engineer at google not clickbait it's

100 facts to give a little bit more

context i'm still fairly early in my

career i've only been working for a

little bit over five years and i'm still

in my 20s and this amount of money is a

big deal to me especially because i

don't come from a wealthy family i

understand i'm very lucky and privileged

to be in this position and so that's why

i'm sharing this information so that

more people have access to it and can

act on it in today's video i'm going to

share how much money google software

engineers make at each level i'm going

to explain in depth how total

compensation at google works because

it's so much more than just salary and

then i'm gonna talk about my path and

how i reached my million dollar

milestone i have a lot to cover in this

video so let's get right into it how

much do software engineers at google get

paid in this section i'm going to share

real compensation figures from actual

google employees and to get this data

i'm going to use a website called

levels.fyi which is a website where tech

employees anonymously share their total

compensation as you know pay

discrimination is real and so by sharing

your salary you're helping make sure

that everyone gets paid fairly and so

that's why all these tech employees

share their salary on this website one

thing to keep in mind is that pay varies

by location and level all things equal a

software engineer will get paid more

working in silicon valley over a smaller

city like austin texas because silicon

valley has a more competitive market the

cost of living is way higher and so many

more other factors just know that when

you're looking at these salaries make

sure you're looking at the location as

well and by level i mean job role and

title and so in this video i'm only

going to be covering the software

engineer role and then i'm going to be

talking about the different levels like

entry level mid-level senior level so on

okay so let's dig into the actual

numbers and i'm going to be using bay

area salaries because that's where i'm

from but later on i'll share some

compensation values from other locations

as well at google the entry level

software engineer starts at level 3 or

l3 base salary is 139 000

equity is 35 000 and bonus is 22 000

which comes up to an average total

compensation of 196 000

so it's very possible to be making

multiple six figures as an entry-level

software engineer level three includes

people who just graduated so new grads

and also people who transferred in from

other companies who are still entry

level the next level is going to be the

mid-level software engineer at google

and that is level 4 or l4 base salary is

168 000

equity is 83 000

and bonus is 29 000 which adds up to a

total compensation on average of two

hundred and eighty one thousand dollars

you can stay at level four for your

entire career if you want to i know

someone that's been in l4 for over 10

years and it's just a personal decision

their reasoning is that they find the

job relatively easy to do and so that's

totally valid but i also know a lot of

people who try and get to at least l5

which is senior software engineer so

level five software engineers at google

will get a base salary on average of 198

000 they get an equity of 138 000 per

year and the bonus is 37 000 per year

which adds up to a total compensation of

374 thousand dollars per year as you can

expect as you level up and get promoted

you're gonna have more impact and more

responsibilities in the company which is

why you get paid a lot more money and

just to show how much money you can make

as a software engineer level eight is

the principal software engineer and they

make over one million dollars a year and

then i also made this table that lists

the average total compensation of google

software engineers from different

locations at each level and i converted

it to local currency so i hope this is

helpful it's not an exclusive list so if

you don't see your location here you can

always look it up on levels.fyi or

another site like glassdoor so pause

here if you want to compare otherwise

let's move on to the next section okay

how does total compensation at google

work total compensation at google is

structured so you get paid in three

different ways base salary bonus and

equity in this section i'll be going in

depth about how each component works and

how it affects your income first up is

base salary which is the most

straightforward base salary is paid out

in cash and it's transferred to your

bank accounts your base salary is what

you're going to be paid in your

paychecks that happen throughout the

year for me i live in the us and so i

get paid about every two weeks which

equals about 24 paychecks per year and

my salary is pretty evenly distributed

between all of those paychecks here's a

table showing examples of base salaries

and the associated paycheck values

pre-tax if your base salary is 150 000

and you get paid 24 paychecks throughout

the year that gives you about six

thousand two hundred and fifty dollars

per paycheck or twelve thousand five

hundred dollars per month before any

taxes are taken out taxes are really

important but they're going to vary

depending on your location and so if you

want to estimate how much taxes are

gonna be taken out of your paycheck you

could just google your location plus

paycheck calculator and that'll give you

a good estimate next up let's talk about

bonus which is also paid out in cash now

there's actually a lot of different

bonuses you can have and so i'm just

gonna list them all out sign on bonuses

are going to be a lump sum bonus that

you receive for signing your offer

letter this can vary depending on what

other job offers you have google uses

the sign on bonus to incentivize you to

join their company versus joining some

other company my sign on bonus was 20

000 and it was paid out within the first

30 days of me joining the company you

can also get a relocation bonus if you

have to move to join the company this

should cover things like flights travel

and any other moving costs for me i

received a 3 500 relocation bonus

because i had to move from my college

town back to the bay area to work at

google in their headquarters in mountain

view when you're working at google you

can also get bonuses from other

employees at google so someone in your

management chain or one of your peers

that want to recognize you for your hard

work or for going above and beyond their

normal work duties so a good example of

this is volunteering to help another

team or something like that this year i

received about six thousand dollars in

these types of bonuses but the big bonus

that most people talk about when it

comes to your total compensation will be

your annual bonus and that's going to be

a percentage of your base salary the

exact percentage will vary depending on

how you perform throughout the year so

basically it depends on your performance

reviews if you meet expectations you can

expect a 15 bonus if you exceed

expectations you can receive a slightly

larger bonus and if you don't meet

expectations you'll receive less bonus

this year i performed well so i received

a 20 bonus on top of my base salary and

then here's a chart to demonstrate what

i'm talking about using the l4 bay area

average base salary of 168 000 here's

what a bonus would look like at

different bonus target percentages next

up we'll talk about equity which is in

the form of restricted stock units or

rsus at google we call them google stock

units or gsus when i first joined google

right after college i had no experience

with stocks and so this was the hardest

for me to wrap my head around because it

was all new to me the only things i knew

about stocks were things i seen on tv or

in the movies

your total compensation will come with

an equity grant which is valued in usd

but you're not going to be paid in usd

you're going to get paid again in stock

so you know for your salary you're going

to get paid in cash into your bank

accounts for your equity you're going to

get paid in stock and it's going to go

into your brokerage account that google

will set up for you there's a lot of

nuance to know here but i'll try and

simplify it using an example let's say

you joined in january of 2017 and your

equity grant is valued at 100 000 the

stock price at that time was 796 which

means that you'd get 126 stocks over

four years or 31.5 stocks per year now

how you get paid the 31.5 stocks will

vary depending on your investing

schedule in this example just to make

things super simple we're gonna assume

that you get paid all 31.5 stocks at the

beginning of each year and just to

clarify this isn't a realistic investing

schedule it's just to make the example

really simple so in january of 2018 the

first quarter of your grant will vest at

a price of one thousand one hundred and

seventy dollars which means you'll get

paid thirty six thousand eight hundred

and fifty five dollars now you're still

getting paid the 31.5 gsus but the value

of your google stock has increased so

you're gonna get paid over eleven

thousand dollars more than the grant

price in january of 2021 the last

quarter of your initial equity grant

will vest at a price of 1 835

which is the price of google stock at

that time in this vesting period you're

going to get again 31.5 google stock but

now it's valued at a total of 57

802

and that's going into your brokerage

account and once these are transferred

into your brokerage account you have all

the power to sell the stock if you want

to get it as cash or you can hold on to

them as google stock if you want to okay

and that was just for your initial

equity grant you're also able to get a

new equity grant refresh every single

year which again will invest over four

years and so you're gonna have times

when you have multiple equity grants

vesting at the same time which is a

really happy day for my brokerage

account so i hope i didn't lose you with

all those numbers but basically what i

want you to take away from this is that

equity can really drive up your total

compensation if you stick around long

enough for your stocks to fully best and

of course this assumes that google stock

will continue to increase in value as

well which it has been doing for the

last few years to recap you get paid

your total compensation in three

different ways your base salary which is

cash deposited through your paychecks

you also get bonus which is also paid

out in cash into your bank accounts and

then your equity is paid out in google

stock which is transferred directly into

your brokerage account which you can

then buy or sell hopefully that all made

sense if it doesn't or you still have

questions let me know in the comments

and i'll reply to every single one of

them now let's talk about my career path

to one million dollars now that i've

gone over how much software engineers at

google make and how total compensation

at google works i hope you can see that

making 1 million dollars is quite an

achievable feat for any google employee

this is one example of how i did it and

what my path looked like to 1 million

dollars so i joined google in 2016 after

i graduated from college and i started

out as an l3 which is the entry level

software engineer as an l3 i performed

really well and i was promoted to l4 or

mid-level software engineer after one

and a half years of working at google

when you get promoted you also get a

nice bump in your total compensation so

now you're gonna be getting paid at the

next level i've currently been in l4 for

the past three and a half years and i've

been getting high performance reviews

again so my total compensation has had a

nice bump every single year as i'm on

track to become a senior software

engineer so one part of the equation was

hard work and that's honestly the only

thing i had control of which is the

quality of my work the other part of the

equation is going to be the amazing

run-up that google stock has had these

past few years when i first signed my

offer letter i was still in college and

that was one year before i started

working full-time and two years before

my first stocks actually vested from the

time i signed my offer letter to the

time my last stocks from that initial

equity grant vested the google stock

vesting price was more than double the

grant price which really boosted my

income ultimately i was able to earn 1

million dollars thanks to my promotion

early on in my career for performing at

consistently high levels and because the

google stock increased so much my final

message for you is that if you want to

work at google you should apply as soon

as possible there's really no reason to

wait just consider all the money you

could be making if you do get hired if

you like this video be sure to give it a

thumbs up and if you haven't seen it

already i recommend you to watch my q a

video of how i landed my job at google

i'll see you in the next one

[Music]

you