The Art of CTO Salary Band Calculator creates competitive compensation bands for engineering roles across levels, accounting for location, company stage, and market percentile targets.
Frequently Asked Questions
How do you set engineering salary bands?
Setting salary bands starts with defining your compensation philosophy (what market percentile you target) and gathering benchmark data from sources like Levels.fyi, Radford, or Pave. Bands typically have a midpoint representing the target for fully performing employees, with a spread of 15-25% above and below. You should create distinct bands for each engineering level and adjust for geographic market differences.
What is the typical salary range for a senior software engineer?
Senior software engineer total compensation varies significantly by market and company stage. In major US tech hubs, base salary typically ranges from $160,000 to $220,000, with total compensation (including equity and bonus) reaching $200,000 to $400,000+ at well-funded companies. Remote-first companies and those outside major hubs generally offer 10-30% less, though the gap has narrowed since 2020.
How often should salary bands be updated?
Salary bands should be reviewed at least annually to reflect market movement, and more frequently during periods of high inflation or talent market shifts. Many companies do a full compensation benchmarking cycle annually and make mid-year adjustments if market data shows significant drift. Failing to update bands regularly leads to compression issues, increased attrition, and difficulty hiring at competitive rates.