What should we pay for this role?

Questions CTOs ask

How do you set engineering salary bands?

Setting salary bands starts with defining your compensation philosophy — which market percentile you intend to pay at — and gathering benchmark data from a current survey. Bands have a midpoint representing the target for a fully performing employee, with a spread above and below it; a narrower spread makes progression clearer, a wider one gives more room to reward depth in role. You need distinct bands for each engineering level, adjusted for geographic market differences. This calculator gives you a starting structure: it uses a fixed plus or minus 15 percent spread around the midpoint and does not ask you to choose a percentile, so treat the output as a shape to adjust rather than a band to publish.

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.