On this page, we're detailing why we have the compensation framework we have now.
If you have any feedback or questions relating to compensation, please reach out to Total Rewards.
total-rewards@ gitlabif you want to contribute.
total-rewards@ gitlabwhen we don't. If you have a specific question around your compensation or one of your direct reports' please schedule a call with
total-rewards@ gitlabto review.
We want our compensation to be at a level where we can recruit and retain people who meet our requirements. Our requirements for all job-families are at or above the average in the market. Therefore, we can expect to be at or above the 50th percentile of the survey data gathered from providers like Comptryx and Radford. Please do not use the term market rate since this can mean either competitive rate or survey data. Also see our SF benchmark.
When discussing a competitive rate for a single person at GitLab, please refer to this as their lottery factor. For example, if this person won the lottery and left the company what impact would that have. Other common industry terms are walk away factor or bus factor, but those both hold a negative connotation.
As part of offering a competitive rate within our transparent Compensation Calculator, team members are able to see where they fall within the compensation range for their role in their location. Typically in the technology sector, the majority of team members are likely to sit between the minimum and slightly above the median of the overall compensation range. It is not common to see a team member at the top of the range as this would leave little to no room for salary growth.
It is important to note that where someone falls within the compensation range is not an indicator of performance, nor is it a sign of promotional readiness. For more information on how performance is linked to compensation please review the following handbook section. This is different from the Compa Groups GitLab used to have when the bands were more narrow. Additionally, where a team member sits in the range may change as GitLab's compensation philosophy around competitive rates iterates as part of readiness to become a public company to allow more room for salary growth.
There are no policies in place at GitLab that prevent team members from sharing their personal compensation data, though we encourage that any concern a team member has with compensation be directed directly to your manager or Total Rewards as the most efficient route to address concerns and arrive to a resolution.
Competitive rates for roles vary depending on regions and countries. We pay a competitive rate instead of paying the same wage for the same role in different regions. Paying the same wage in different regions would lead to:
As more companies transition to partial or all remote workforces, we are tracking (internal only) the pay philosophy decisions made by these companies to understand the effects these decisions may have on the tech industry and future of remote pay.
We hire the best candidate for each role regardless of location, cost, or other factors. During the sourcing we do optimize what potential candidates we approach in order to bring more diversity (both geographically and people from underrepresented backgrounds) to our team.
We also wrote a blog post about paying local rates.
We have a market-based approach to compensation because:
The Compensation Group is comprised of the CEO, CFO, and Chief People Officer. The Compensation Group is responsible for all Total Rewards escalations based on the approval matrix. When there is no time to coordinate with the group, the CEO can make a decision and inform the group. When the CEO is away (e.g. vacation), the two other members of the group can make a decision and inform the group. This group is different from the compensation committee at the board level.
|Approval Type||Approvals Needed||Process|
|Compensation Requests outside of band (cash/equity) for new hires and current team members||Chief People Officer||Process Document|
|Approval of Benefit Plan Changes (due to implementation or renewal)||If Under 50k USD, Finance Business Partner (G&A)
If 50k-100k USD Finance Business Partner (G&A) and VP, Finance
If 100k+ USD Finance Business Partner (G&A), VP, Finance, and CFO
|Total Rewards to summarize implementation or renewal details|
|Final Approval of Annual Compensation Review||Chief People Officer, CFO, and CEO||Total Rewards to present final proposed increases and budgetary impact|
|Review/approval of Executive and Board Compensation||Chief People Officer and CEO||Total Rewards to present summary of proposal, once approved escalate to Compensation Committee for Final Approval|
|Internal Demotion requests||Chief People Officer||Demotion Process|
Effective Q2 of FY 2021, we have established a one time bonus payment process for team members that are asked to step into an interim management role. Team Members acting in an interim management role should review the expectations of an individual in the management group.
The formula for the bonus recognizes the length of time that the team member is playing the interim role. Payment of the one time bonus would occur at the completion of the interim role. The bonus would be calculated using the following formula:
The greater value of the standard discretionary bonus amount ($1,000 at the current exchange rate) OR the following calculation:
For team members on a base salary compensation plan, your bonus will be an additional 10% of your salary for the duration of the interim role period. The calculation is as follows:
(Annual Base Salary in Local Currency/365) x .10 (10%) x # of Calendar Days in the Interim Role
For team members on an OTE (On Target Earnings) compensation plan, if you assume the quota of the role that you are covering for, you will be paid 10% of your OTE for the interim role period. The calculation is as follows:
(Annual On Target Earnings in Local Currency/365) x .10 (10%) x # of Calendar Days in the Interim Role
If your compensation changes during the interim period (for example, relocation, country conversion, etc.), we will calculate the interim bonus based on the pay rate of each calendar day.
The process for submitting an interim bonus is as follows:
The team member must be an active team member of GitLab at the end of the interim role period to be eligible to recive a bonus payment. If a team member leaves GitLab during the interim role period, they will not be eligible for a prorated payment.
($125,000/365) x .10 x 90 = $3,082.19
($100,000/365) x .10 x 31 = $849.32so we would round up for this bonus and process as a discretionary award.
2020-12-01 Oanda Rates
|Currency||Rate from USD||Rate to USD|
The compensation calculator is updated in December and June with the most recent exchange rate. Adjustments to existing team members' compensation who are paid in local currency are made as part of the applicable compensation review cycle. This is because since you are paid in local currency, your local purchasing power does not change.
There are a number of reasons why team members may not be paid in local currency. For example, GitLab's bank might not support the currency or there may be a strong economic reason for the team member to choose a different currency. The currencies that GitLab can pay in are published on the contracts page.
(New Rate - Previous Rate)/Previous Rate.
Example: A team member's local currency is the Russian Ruble (RUB) and they are paid in US Dollars (USD). They have not previously opted out and have been employed for greater than 6 months. The exchange rate effective 2020-12-01 is 0.013. If for 2021-06-01 the exchange rate increases to 0.014, then this would result in a percent increase of 7.69%. The team member would have the option to either accept this increase to their salary or opt out.
GitLab is committed to following all applicable wage and working hours laws and regulations. To help ensure that all work performed for GitLab is compensated correctly, team members compensated on the basis of hours worked must report and record time accurately.
Sales and Sales Development roles at GitLab that are subject to quota and paid commission based on the Sales Compensation Plan are not located in the compensation calculator. This includes roles in the following departments:
|Zone||Location Factor Range||Zone Differential|
|Zone 4||0.01 - 0.49||0.60|
|Zone 3||0.50 - 0.69||0.75|
|Zone 2||0.70 - 0.85||0.85|
|Zone 1||0.86 - 1.00+||1.00|
The Variable Pay Frequency is a field held in BambooHR and applicable to roles that receive a commission or bonus. Variable Pay Frequency is assigned according to the following chart:
|Department/Role Description||Variable Pay Frequency Type|
|VP (non-sales), Executives||Company Executive Bonus Program|
|VP (Channel, Field Operations, Customer Success)||Sales Executive Bonus Program|
|VP (Commercial Sales, Enterprise Sales)||Monthly Bonus|
|Director (non-sales)||Company Director Bonus Program|
|Director (Field Operations)||Sales Director Bonus Program|
|Director (Channel, Customer Success, Enterprise Sales)||Monthly Bonus|
|Director (Consulting Delivery)||Quarterly Bonus|
|Channel, Commercial Sales, Customer Success, Enterprise Sales, Sales Development (IC)||Monthly Bonus|
|Consulting Delivery, Education Delivery, Practice Management, Sales Development (Manager)||Quarterly Bonus|
Director compensation is determined as part of the GitLab Compensation Calculator and is comprised of base salary and bonus. The location factors for Directors have a floor built in where the location factor for a team member is subject to either the US Director Minimum location factor of 0.8 or Global Director Minimum location factor of 0.7. If someone is in a location with a higher location factor then this minimum does not apply and the higher location factor will be used.
Directors who are not already enrolled in the Sales Compensation Plan or other performance incentive plan are eligible for a 15% bonus of current base salary (increased from 10% beginning in FY 2021). More information on the bouns plan can be found in the Company Director and above Bonus Plan section.
Executive Compensation (VP and above) is derived outside of the GitLab Compensation Calculator using the following process:
As each Executive has an individual market assessment upon hire, we expect compensation to be aligned to market at each compensation review. If there are large changes in the market for a specific role, those will be addressed.
All targets are based on Company performance against Plan targets as approved by the Board of Directors.
Proration and Eligibility:
Bonus examples can be found in the following google doc.
GitLab reserves the right to change or discontinue the bonus program at any time. All bonus payouts are discretionary and require the achieving of specific company results that will be communicated each year.
Effective FY22, All Director and above team members in the Sales organization that are not in quota carrying roles or on their own role specific compensation plans will have 100% of their variable compensation tied to the CRO Net ARR goal. They will be notified of this goal through the administration of an individual compensation plan or participant schedule.
For more information on the administration of commission plans, please refer to our Sales Commissions handbook page.
The Compensation Committee approves all bonus payouts for direct reports to the CEO at the end of each Fiscal Year. The Compensation Group internally at GitLab approves all other bonus payouts.
At the start of each quarter the General Manager, Meltano and CEO will establish a target tied to the bonus. This should be a key metric which is confirmed via email. Total Rewards will file this email in BambooHR for audit trail.
Proration and Eligibility:
Payout: At the end of each quarter, Total Rewards will calculate the payout from the approved target and add to the next available payroll.
This is an internal process for the Total Rewards team which details how to refresh the Compensation Data Analysis and Modeling sheet which is used for processes such as calculating percent outside of compensation band.
As part of our Q1 OKR, we will be working on ensuring there are materials for a compensation certification. The following are the initial questions to generate the certification.
You can test your knowledge on our compensation by taking the GitLab Compensation Knowledge Assessment quiz.
If you have questions about compensation or the content in the Knowledge Assessment, please reach out to the Total Rewards team. If the quiz is not working or you have not received your certificate after passing the Knowledge Assessment, please reach out to the Learning & Development team.