---
title: "Pay Types: Calculated TDC, Annual Equity, and Refresh Equity"
description: "Overview"
canonical_url: "https://support.pave.com/articles/pay-types-calculated-tdc-annual-equity-and-refresh-equity-D4mrVkpDFi"
md_url: "https://support.pave.com/articles/pay-types-calculated-tdc-annual-equity-and-refresh-equity-D4mrVkpDFi.md"
---
# Overview

Pave now supports advanced compensation structures including **Annual Equity**, **Refresh Equity**, and **calculated Total Direct Compensation \(TDC\)** to help you benchmark and manage comprehensive pay bands more effectively.

## Table of contents

-   [Understanding the new pay types](#h_01K4DSJER3RT834APWEXHH1FQ5)
-   [Configuring pay types](#h_01K4DSJER55S0SYDDTGQJ08T2T)
-   [Edit bands and add pay types](#h_01K4DSJERDM5MYVY957EH3ZGNY)
-   [Reminders and FAQ](#h_01K4DSJEREJ36NZJ8HQKHXM3MQ)

## Understanding the new pay Types

### Annual Equity

The target equity value an employee should vest over a single year. This is commonly used in TDC calculations and is particularly valuable for companies with unique or shorter vesting schedules.

### Refresh Equity

The value of non-new hire equity grants received by an employee in the past 12 months. These grants are typically awarded for retention, performance, or other organizational needs.

### Calculated Total Direct Compensation \(TDC\)

The complete compensation an employee should receive annually, automatically calculated using this formula:

**Calculated TDC = Cash Components \[Base + Variable + Bonus\] + Annual Equity Value**

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## Configuring pay types

### Step 1: Data Source Mapping

1.  Navigate to **Market Pricing** → **Data Sources**
2.  Upload your compensation data OR save a Pave datacut
    ![Screenshot 2025-06-30 at 9.32.13 AM.png](https://support.pave.com/api/attachments.redirect?id=7d911f1d-2ce2-428e-a07f-b44f5cb1806a)
3.  Map relevant fields to TDC, Annual Equity, or Refresh Equity
4.  Save your mappings

### Step 2: Benchmark Jobs

1.  Go to **Market Pricing** → **Benchmarking** → **Edit job mapping**
2.  Select the new compensation types in your survey mapping group
    ![CleanShot 2025-06-30 at 09.33.41.png](https://support.pave.com/api/attachments.redirect?id=0f607885-1c82-4083-83e9-188eb54f7b3e)
3.  Save changes and generate matches
4.  Review benchmarks and apply any necessary adjustments

### Step 3: Generate Pay Bands

1.  Navigate to **Market Pricing** → **Bands**
2.  Select Annual Equity, Refresh Equity, and Calculated TDC in Band Generation
    ![Screenshot 2025-06-30 at 9.35.41 AM.png](https://support.pave.com/api/attachments.redirect?id=db028c28-77f6-4e5b-8444-c37fc09a4041)
3.  Set min/mid/max values for each compensation type
4.  For Calculated TDC:
    -   Ranges are automatically calculated based on your cash and annual equity selections
    -   If Base + Variable + Bonus are selected, these calculate the "Cash" portion
    -   If only Total Pay is selected \(without Base\), Total Pay becomes the "Cash" portion
    -   To include bonus calculations, ensure bonus percentage values are uploaded

\***TDC benchmark values come directly from survey data \(not calculated\) so you can compare your calculated ranges against market benchmarks\***

### Step 4: Upload Band Data

1.  Navigate to Market Pricing → Bands → Import existing compensation bands. Define your job structure
2.  Define your job structure. Click Compensation Types
3.  Configure the pay types for the bands. 
    ![Screenshot 2025-06-30 at 9.38.40 AM.png](https://support.pave.com/api/attachments.redirect?id=76e380c9-d883-4aa9-bf28-04e64e71ff30)
    -   TDC is a calculated field based on the cash & annual equity selections \(see above\).
    -   No TDC range values need to be uploaded, since they are calculated.
    -   If TDC range values are uploaded, they will be ignored.

### Edit bands and add pay types

-   Compare the calculated TDC range values to the TDC benchmarks directly from the market data.
-   The TDC range values cannot be edited directly, but the TDC range values will update when the other values are edited.
-   Add new pay types to existing band sets through Settings
    ![CleanShot 2025-06-30 at 09.41.34.png](https://support.pave.com/api/attachments.redirect?id=70946aac-fcc5-41d0-8ba2-51a3cd4cb300)

### Reminders

-   **TDC ranges cannot be edited directly** - they're calculated from cash and annual equity components
-   **Don't upload TDC range values** in templates - they're automatically calculated
-   **TDC benchmarks come from survey data** - only your calculated ranges are computed by the system

## Frequently Asked Questions

**Q: How is annual bonus included in TDC calculations?** A: If annual bonus percentage is present in your band data, bonus is calculated as Base × Annual Bonus % and included in the TDC formula.

**Q: What if I have both Base and Total Pay values?** A: The system prioritizes Base \(plus Variable/Bonus\) for calculations. If Base isn't available, it falls back to Total Pay.

**Q: What's the difference between Annual and Refresh Equity?** A:

-   **Annual Equity:** Used for benchmarking against standard annual vesting and TDC calculations, common among public companies
-   **Refresh Equity:** Discretionary grants for retention, performance, or other specific organizational needs