Global Compensation

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Compensation Principles

  1. We're an open organization and want to be transparent about our compensation principles and paying local rates, while not disclosing individual compensation. We've developed a compensation calculator that provides an estimate of market rates for various roles, across the globe.
  2. We offer stock options for most positions.
  3. Compensation aims to be at the 50th percentile of market your region, your job title, your seniority, your experience.
  4. We base compensation on current position and performance, not on what we paid you last month.
  5. When your position, or title changes we'll adjust your pay as soon as the change is made.
  6. When your seniority or experience factor changes we'll change your pay in January.
  7. Your experience factor informs our pay, we should not set the experience factor to get to a certain pay.
  8. If we change our compensation we change it both for existing people (in January) and new people.
  9. We don't offer ping pong tables or free lunches. We think it is more important to offer people flexibility and freedom, see the Top 10 reasons to work for GitLab on our culture page.
  10. The rent index depends on your geographical area.
    1. To determine your area, select the country you live in. This will filter out all areas outside of your country. Based on the remaining choices under "area," if you live within one hour and forty five minutes of a city listed, you may use that as your location. If not, you will select "Everywhere else." If the only item listed for the country is "All," the country has the same Rent Index regardless of the city you live in. If applicable, a state or province might be listed instead of a city.
    2. If your country is not listed, reach out to People Ops to gather relevant data.
    3. When you move you have to inform us and we may adjust your compensation up or down. Refer to the "move calculator" to see what the likely impact will be.
  11. We hire across the globe but we're not location agnostic. Your timezone, the market rate in your region, and vicinity to users, customers, and partners can all be factors. For example, we may favor an applicant over another because they live in a region with a lower market rate or because we need someone in that timezone. All things being equal we will hire people in lower cost markets vs. higher cost markets.
  12. As you can see from our contracts, compensation is typically set at a fixed monthly rate. People on quota (account executives, account managers, and sales leadership) have variable compensation that is about 50% of their On Target Earnings (OTE). Individual contributors in the sales organization have variable compensation that is purely based on commission. Solutions Architects currently have a lower variable component, we're not sure how this will evolve. All other people have fixed compensation (but we do have bonuses and incentives).
  13. Compensation decisions around level and experience levels and for functions not in the calculator are taken by the compensation committee. This committee consists of the CFO, CEO, and Chief Culture Officer. When there is no time to coordinate with the committee the CEO can take a decision and inform the committee. When the CEO is away (e.g. vacation), the two other members of the committee can take a decision and inform the committee. Whatever the decision is, the compensation committee should be cc-ed (or bcc-ed) on the final email, so that the committee members can know that the loop was closed.

Regular Compensation

  1. Employees of our Dutch entity (GitLab B.V.) will get their salary wired on the 25th of every month, and can see their pay slip in their personal portal on HR Savvy's system towards the end of the month.
  2. Employees of our Dutch entity who are based in Belgium will get their salary wired around the last day of each month and will receive their pay slip in their personal portal on Boekfisk's system
  3. Employees of our Dutch entity based in India that are employed through GitLab's co-employer Lyra will get their salary wired around the last day of the month. Lyra will send pay slips electronically but will be switching to a HR portal very soon so that pay slips and tax declaration forms can be accessed directly.
  4. Employees of our US entity (GitLab Inc.) have payroll processed semi-monthly through TriNet, and they can access their pay slips through the TriNet portal.
  5. Employees of our UK entity (GitLab Ltd) will get their salary wired on the last day of every month, and can see their pay slip via their personal portal on Vistra's system towards the end of the month.
  6. Employees of our German entity (GitLab GmbH) will get their salary wired on the last day of every month, and can see their pay slip via their person portal on RPI International Payroll's system towards the end of the month.
  7. Contractors to GitLab (either entity) should send their invoices for services rendered to ap@gitlab.com
    • For 'fixed fee' contracts, it is OK to send the invoice before the time period that it covers is over. For example, an invoice covering the period of March 1-31 can be sent on March 25.
    • All invoices are internally reviewed, approved, and then payment is processed. This is usually a fast process, but be aware that it can incur delays around vacations. In principal, payments go out once per week on Fridays.
    • An invoice template can be found as a Google sheet named "Invoice Template" (also listed on the finance page )

Exchange Rate Fluctuations

There are some team members that are not paid in their local currency either by choice or GitLab's bank does not support their currency. The currencies that GitLab can pay in are published on the contracts page. So we can try to keep compensation level in the local currency amount People Operations will perform exchange rate reviews at six month intervals as part of the January 1 and July 1 Oanda rates that are being used as benchmarks for the compensation calculator. People Operations will confirm, by letter of adjustment any increases or decreases to compensation as a result of this review and update the exchange rate based on those dates in BambooHR. Any significant increases or decreases will be reviewed on a case-by-case basis before any changes are made. Additionally if a team member is impacted outside of this review period they should reach out to People Operations.

2018-01-01 Oanda Rates

Rate to USD Currency
1.19786 EUR
1.34912 GBP
0.79659 CAD
0.12168 SEK
0.28662 PLN
0.01566 INR
0.78049 AUD
0.28733 ILS
0.15365 CNY
0.01731 RUB
0.05078 MXN
0.00888 JPY
0.08076 ZAR
0.04683 CZK

Paying Local Rates

Different than business travel, vacation, or visiting a relative for a few weeks, relocation means that you will establish yourself in a new location outside of your current metro area. If you are ending your current residential living arrangement, spending more than six months in one location as part of an extensive period of travel and/or will have your mail delivered to an address in a different city please contact us.

As stated in the people ops section of the handbook, you should first obtain written agreement (from your manager) when planning a relocation. It is the company's discretion to offer you a contract in your new location. At the time of the location update, we will take into consideration your new metro region when making a salary offer for continued employment.

At the onset, this practice sounds harsh when moving to a lower paid region. One might argue that it seems unfair for the organization to pay someone less for the same work in the same role, regardless of where they go. However, if you look at it from another angle for a minute and compare this practice to what most companies do, it should make more sense. For example, say you work for a company with physical locations and say they haven't accepted that remote work is as productive as coming into the office yet. If you wanted to pack up and move to a location where they did not have a physical site, you would have no alternative but to resign and seek new employment in your new location. You would find quickly that companies in the area pay at local employment market rates.

Now, let's say the company did have a site in your new location and they offered the flexibility to transfer. If they did not have a similar position open, you would have to either apply for a different open position in the same company or resign and apply externally (back to the realization that other companies will pay at local market rates). If you were lucky enough that they did have a similar role in the new location, a transfer would come with a pay rate based on the local market to ensure equity across all incumbents (people in the job) by location.

Adjusting pay according to the local market in all cases is fair to everyone. We can't remain consistent if we make exceptions to the policy and allow someone to make greater than local market rate for the same work others in that region are doing (or will be hired to do). We realize we might lose a few good people over this pay policy, but being fair to all team members is not negotiable. It is a value we stand behind and take very seriously.

Annual Compensation Review

During the fourth quarter of each year, People Operations will conduct a compensation review to ensure all team members are paid based on market data in the compensation calculator. This is not a Cost of Living Adjustment, but instead a review of the market changes. Rent Index and Experience Factor will continue to be a part of the compensation calculator equation. The annual compensation review is not directly linked to performance reviews nor the ability to be promoted. The increase percentage may vary for each person. For instance, experience factors are reviewed as part of a compensation adjustment or promotion, which GitLab encourages to happen independently from this review. If a team member was recently adjusted, the annual adjustment might yield no additional salary during the annual compensation review. This review acts as a sweep for each team member’s compensation to be evaluated at least once per year.

Annual Compensation Review Timeline

  1. People Operations will review all benchmarks, rent indexes, and country factors associated with the Compensation Calculator and propose revised inputs to the Compensation Committee for approval/implementation.
  2. People Operations will reach out the managers to obtain updated experience factors for each active team member.
    • People Operations will create a spreadsheet with all active team members listing the following information: employee number (for People Ops use only), name, title, and level.
    • Manager will then use the Experience Factor Guidelines to assess where each team member is within their current position.
    • Remember that this is also a good time to update your team’s job descriptions if they do not reflect the role.
  3. People Operations will calculate the amount of the increase for each team member and obtain approval from Finance for the total budget impact. Depending on budget constraints the increases may be adjusted up or down.
  4. People Operations will generate a google sheet which will serve as a summary of increases for each department and share with all direct and indirect managers. This manager review will be the time for management to verify the compensation calculator inputs and adjust increases. While these adjustments are based on market data and experience factors, rather than performance, team members who are currently struggling to perform at their current level should have that communicated clearly and the manager should consider delaying the increase until performance reaches an commendable level.
  5. Managers will inform the team members of the increase.
  6. People Operations will stage the letters of adjustment, update BambooHR, and notify all payroll providers to be effective January 1st.
  7. People Operations will generate letters of adjustment and stage for signatures.

Manager Review

As part of the new Annual Compensation Review, managers will review/approve the proposed salary increases to ensure that we are paying each team member to market. The increases will be effective January 1, 2018 and are derived from the iterated version of the compensation calculator. Please verify the compensation calculator inputs (experience factor, level, title) are accurate. Note: The experience factors come from the 2017 Experience Factor Worksheet, where all managers inputted the data in October 2017.

If you did not conduct an experience factor review with your direct report, please advise People Operations and follow the guidelines from the handbook. It is very important to you use the Experience Factor Worksheet to determine the correct final Experience Factor and to have discussions with your direct reports. It is very important that GitLabbers understand their experience factor.

While some GitLabbers may not receive an increase due to already being at the right market rate for their Experience Factors, Level, Role, and Location there are other circumstances where an increase should be avoided. If there are any reasons as to why the team member should not receive the proposed increase to be aligned with their experience and market in our calculator, please ping brittany@ domain or barbie@ domain in the manager worksheet and add your comments in the “reasoning” cell. This could be due to a current performance issue, pending termination, etc. If you would like to delay the increase, please outline a proposed plan of action and deadline.

Cost of Living Adjustment

For positions in the compensation calculator, each eligible team member will receive at least a prorated 3% increase in base salary as a Cost of Living Adjustment effective January 1, 2018. Eligible Sales team members will also receive the Cost of Living Adjustment effective January 15, 2018. Note: Director/Execs and SDRs/BDRs will be reviewed separately in Q1 2018.

Experience Factor Guidelines

The experience factor is determined by the direct manager for each team member, and reviewed by all indirect managers. This factor does not directly reflect years of work experience, but instead, demonstrated ability to drive projects and deliverables from their job description to completion within GitLab. The goal of quantifying experience factors, as it relates to compensation, is to ensure they are accurate to work toward getting to the right salary. Experience Factors should also be used in coaching and developing employees. We will be fixing the compensation tool, but we need accurate data going into the iteration to make sure the compensation tool is also accurate. In 2017, we hope to get the correct baseline for the experience factors for our employees going into 2018.

If a manager is new to the team member, and has not had time to assess the experience factor, collaboration with previous managers or colleagues to determine the person’s skills is encouraged. This can serve as a strong data point when assessing experience factors.

It is important to take all aspects of the position description into account when determining experience factor. To ensure you are quantifying the experience factors in the right way, refer to our Experience Factor Worksheet. Save a copy in the name of your team member and use the job description to help populate the responsibilities. It is a great idea to this with the participation of your team member. If the job description isn't correct, use this as an opportunity to update it. In addition, the most recent performance review can be a helpful tool when distinguishing the experience factor the team member is currently performing at. We are changing the way we do performance reviews (decoupling from comp, using 360 feedback, etc). Performance reviews should not be about judging, but helping people. We do not want performance reviews where people are holding back, so these metrics are different as experince factors are used within the compensation tool.

It is critical that all managers share the experience factors with the respective team member, including how they arrived at that factor. Team Members should understand where they stand in relation to the individual experience factors and weights that led to the final number.

Experience Factor  
New to the position requirements 0.8
Learning the position requirements 0.9
Comfortable with the requirements 1
Thriving with the requirements 1.1
Expert in the requirements 1.2

Explanation of Experience factors:

If you have any questions around determining experience factors, please feel free to open an issue or email People Operations.

Compensation Calculator

As a natural extension of the Compensation Principles outlined above, and our commitment to transparency, sharing, efficiency, directness, and boring solutions (amongst other values), we developed a Compensation Calculator that we are rolling out for those roles in which we have the most contributors, and thus for whom the question about "what is fair compensation" comes up most frequently.

The goals of the calculator are:

  1. Calculate compensation for 200+ metro regions all over the world.
  2. Based on a simple formula.
  3. Based on market data.
  4. That is as accurate as possible given the other constraints.

As with all things at GitLab, the compensation calculator is a constant work in progress. Please send an email to ernst@ company domain if/when you find a big difference between what the calculator suggests vs. what market data indicates. Please make sure to include all relevant links and data.

The formula

Your compensation = SF benchmark x (0.7 x (max (0.2, Rent Index + Hot Market Adjustment) / 1.26) + 0.30) x Level Factor x Experience Factor x Contract Type Factor x Country Factor

where:

See the calculator in action for example for the Developer role, on the Developer job description.

To convert USD to local currency, we use the January 1 and July 1 Oanda currency conversion rates.

The compensation calculator is a tool to assist People Operations in determining a compensation package for new and existing team members. The results of the calculator are not binding. Written correspondence through a contract or letter of adjustment specify all official compensation changes. We reserve the right to change the calculator at any point in time.

How was it developed?

In developing the compensation formula above, we looked at the compensation of our team members which had been set in the past (without the formula), and found out that there was a statistically significant correlation between compensation and the factors that are now in the formula. We purposefully chose to look for correlations with metrics that are probably causal and definitely relevant in people's lives (the rent!). This also has the advantage of letting us work with data that is readily available publicly, as opposed to trying to scour the web for market compensation rates for all roles in all locations. Perhaps surprisingly, there was a stronger correlation between compensation and rent index than with the more general cost of living index available through Numbeo (or the cost of living with rent index, for that matter); and so we moved ahead with the Rent Index. The goal of the calculator is not to compensate people for their cost of living, the goal is to offer market rate compensation, and rent is a better indicator of that than cost of living.

Geographical Areas

As we gathered feedback from the compensation calculator, we realized in some cities that are not major metro areas, the calculator would come in low. To broaden our rent index data points, we incorporated Geographical Areas into the compensation calculator.

To determine geographical areas, we looked at what the United Nations outlines globally. To determine the rent indexes for each country please see the following process per geographical area and country:

  1. Research via an official website what appropriate regions are within the country/area. For example, in the United States there are four regions with nine subdivisions. In the United Kingdom, for compensation purposes, there are four different areas.
  2. Pull all numbeo data for the region selected.
  3. Determine any outliers for the region (on the high end). Make these separate geographical areas.
  4. Define a commutable region for the area (1.75 hours through a google search).
  5. From the remaining data points, select the highest to be used for everywhere else in the region. (Most of these data points should be very close.)
  6. If there is a historic Numbeo number that is higher than the current Rent Index, use the historic number.
  7. Determine if a minimum rent index should be used in the region. (This would normally occur if there is a large gap between remaining data points.)
  8. If there is no data for a country, do not include in the comp calculator. If needed, we can review the compensation based on the region and other salary data.
  9. If there is no data for a state/province within a country, assign the lowest value of the other states/provinces.

Note: The Compensation Calculator lists out metro areas or states for user interface clarity, but the process above is followed for each region, not per state.

Country Factors

This list will be expanded as we gain more experience with the calculator.

Country Employee Contractor
Rest of World 1.17
Belgium 1.00
China 1.00
Germany 1.00
India 1.00
Netherlands 1.00
United Kingdom 1.00
United States 1.00

Process for Determining Country Factor:

  1. Pull data for all positions where we are currently using a Comptryx benchmark, and where the data is available internationally.
  2. For each country and position, match the location of the Comptryx data to the location of the compensation calculator to determine the multiplier.
    • For example, if you are using the benchmark for Amsterdam, Netherlands in the compensation calculator should you should correspondingly be using the Comptryx benchmark in Amsterdam, Netherlands.
  3. The multiplier is derived from Comptryx Benchmark divided by Compensation Calculator Model for each position in the country. Note: If no data is available from Comptryx, we use Payscale data instead but add an additional factor of 0.15 to the multiplier. This is based on a comparison between Comptryx and Payscale data for locations where both are available.
  4. Round the average multiplier to the nearest five hundreths to determine the final result.
  5. Analyze the country factor against current team members for verification.