Benchmark total direct compensation

Total direct compensation (TDC) shows total direct pay for a role in one number. Pave adds each employee's base salary, target variable pay, and equity value, then benchmarks those totals at every percentile.

TDC = base salary + target variable pay + equity value

With TDC, you can:

• See cash and equity together in a single benchmark, calculated from each employee's own pay
• Choose how equity is valued: granted in the last 12 months (total or annualized), or vested in the last 12 months
• View equity as Gross or Net
• Benchmark TDC on Professional, Manager, VP, and C-level pages, and include it in Market Data reports

What's included in TDC

Included:

• Base salary
• Target variable pay (target bonus or target commission, depending on the role)
• Equity, valued using the equity methodology you select

Not included:

• Benefits, retirement, and perquisites
• Actual (paid out) bonus or commission amounts

TDC includes only employees who have equity in the 12-month window for the methodology you select. Employees with no equity in the window are excluded, not counted as zero. For details on who's included and why TDC can differ from other benchmarks on the page, see the article on understanding total direct compensation benchmarks.

Find TDC on the benchmark page

On Professional, Manager, and VP pages, Total direct compensation appears in the Roll-up group, directly after Target total cash. It's the last table on the page, and it's marked New. You can jump to it from the Roll-up group in the page navigation.

On C-level pages, Total direct compensation appears as its own section after the Cash and Equity sections.

[Screenshot: Benchmark page showing the Total direct compensation table under Roll-up, with the employee composition, View equity as, and Equity methodology dropdowns above it]

Each TDC table shows a Consistency Label and the 25th, 40th, 50th, 60th, 75th, and 90th percentiles, the same as other compensation types. On non-C-level pages, TDC is also available in chart view. It does not appear in the target pay mix view.

Adjust TDC settings

Three dropdowns appear above the TDC table:

• Employee composition: Include all employees, only employees receiving variable pay, or only employees not receiving variable pay. This setting applies to every compensation type on the page, not only TDC.
• View equity as: Gross or Net. The default is Gross.
• Equity methodology: Granted in the last 12 months (total), granted in the last 12 months (annualized), or vested in the last 12 months. The default is granted in the last 12 months (total).

You can also change these in Settings. The TDC settings are in the Roll-up section, and employee composition is under All pay types. Select Apply settings to update the page.

For help choosing a methodology and view, see the article on choosing an equity methodology for total direct compensation.

When to use TDC

TDC is most useful when equity is a meaningful and broadly granted part of pay. Common uses include:

• Benchmarking senior and executive roles, where equity is often a large share of pay
• Total rewards and offer conversations, where candidates and employees compare overall packages
• Checking whether your total pay is competitive, even when individual components look in line with the market
• Comparing your target total cash against TDC if you don't have an equity program

Use TDC alongside component benchmarks, not in place of them. When you set a specific pay element, such as base salary ranges or equity grant guidelines, use the benchmark for that element.

TDC may be less helpful for early-stage companies that evaluate equity as a percentage of ownership rather than a dollar value, or for roles where few employees receive equity.

Include TDC in a report

1. Start a new Market Data report. See Create and manage Market Data reports.
2. Under Compensation types, select Total direct compensation.
3. Under View, select Gross, Net, or both.
4. Under Equity methodology, select one or more of the three methodologies.

You must keep at least one view and one methodology selected. Each combination you select appears as its own section in the Excel export, with the same columns as other compensation types. For example, selecting both views and all three methodologies creates six TDC sections.

TDC values in reports are always annual, even when you choose monthly as the cash interval.

Who can access TDC

TDC is available to Market Data Pro customers whose company has connected its equity management system to Pave. To learn more about Market Data Pro, see Upgrade to Market Data Pro.