On this page, we're detailing why we have the compensation framework we have now.
We want our compensation to be at a level where we can recruit and retain people who meet our requirements. Our requirements for most of our 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.
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:
For more context please also see our blog post about paying local rates.
Please see a Twitter thread from compensation expert Heather Doshay where she discusses paying local rates and how that impacts both companies and team members.
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:
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.
2020-01-01 Oanda Rates
|Currency||Rate from USD||Rate to USD|
The compensation calculator is updated in January and July with the most recent exchange rate. Due to the current economic climate, we will continue to use January 1st for currency conversion until further notice. 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 2020-01-01 is 0.016. If for 2020-07-01 the exchange rate increases to 0.017, then this would result in a percent increase of 6.25%. The team member would have the option to either accept this increase to their salary or opt out.
Due to the current economic climate, we will not be applying salary fluctuations based on the 2020-07-01 local purchasing power review for those not paid in their local currency. We will continue to monitor the economic situation and review the impact to the team before reinstating this process.
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 timeaccurately.
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:
These roles are still benchmarked using market data, but instead of using a location factor, a sales geographic differential is applied based on the team member's country/region alignment according to the following table:
|Country||Sales Regional Differential|
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|
In addition to base compensation, 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). Director Compensation is determined as part of the GitLab Compensation Calculator.
Executive Compensation (VP and above) is derived outside of the GitLab Compensation Calculator using the following process:
For FY22, GitLab will review how we can incorporate performance into the Executive Compensation increase 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.
There are Directors in the Sales organization that are tied to the Company Director and Above Bonus Plan for a portion of their OTI (on target incentive). These team members are notified of this compensation element in their compensation plan. See the breakdown in percentages below:
Targets: 92% of the bonus is tied to a quota. 8% of the bonus is aligned to the Company Director and above Bonnus Plan.
Payout, Communication, Timing, Approvals, Proration and Eligibility, and Bonus Payout Approvals will be the same as for the Company Director and Above Bonus Plan.
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.
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 over 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 qustions 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 recieved your certificate after passing the Knowledge Assessment, please reach out to the Learning & Development team.