Customize compensation display

Clear compensation communication drives employee understanding, appreciation, and retention. When employees and candidates can see exactly what they earn, how equity works, and what their total package is worth, they make better career decisions and feel more valued.

These settings control how compensation appears in Total Rewards and Visual Offer Letter. All settings apply to both employees and candidates unless specified otherwise.

Why customization matters

Equity is complex. Most employees and candidates don't understand vesting, share prices, or how equity value changes over time. Without clear display, equity becomes an abstract number that doesn't drive appreciation or decision-making. Customization lets you:

• Reduce confusion: Show only the information relevant to your compensation philosophy
• Increase appreciation: Highlight growth potential or historical value to reinforce equity's worth
• Support decision-making: Give employees the context they need to understand what they own

Cash compensation varies by company. "Bonus" means different things at different organizations. Some use target bonuses, others guarantee amounts, and still others have complex variable structures. Customization ensures employees see compensation in terms they understand.

What you can configure

Equity display

• Grant identification: How grants are labeled (vesting start date, grant date, or grant ID)
• Exercise cost treatment: Net (after exercise costs) or gross (full market value) values
• Information density: Which details appear (values, vested shares, growth, original grant value)
• Future modeling: How employees explore "what if" scenarios with the slider
• Currency conversion: How equity displays for international employees
• Vested equity calculation: Whether past vesting shows historical or current value

Cash compensation display

• Labels and descriptions: Custom headers and explanations for each pay type
• Visibility: Which compensation types appear to employees and candidates
• Order: How compensation tiles are sequenced in the display

Configure equity display

Grant labels: Help employees track their grants

Why it matters: Employees with multiple grants need to identify which is which. The wrong label can cause confusion ("Which grant is this?") or make it hard to reconcile with other systems.

Choose the identifier that matches how employees think about their equity:

• Vesting start date (default): Best when employees think about grants by when they started vesting (e.g., "my 2024 grant")

  • Label format: "Grant vesting 01/15/2024"
  • Use when: Grants vest on predictable schedules and start dates are memorable

• Grant date: Best when employees think about grants by when they were awarded (e.g., "my promotion grant")

  • Label format: "Grant dated 12/01/2023"
  • Use when: Grant dates align with important events (hiring, promotion, annual refresh)

• Grant ID: Best when employees track grants by ID in other systems (e.g., stock plan administration)

  • Label format: "Grant #ISO-2023-001"
  • Use when: Employees need to reconcile grants with external platforms

To configure: Settings > Communicate > Compensation > Equity > Grant label

Equity modes: Show what employees actually receive

Why it matters: Gross equity values can be misleading. An employee sees "$100,000 in equity" but that does not account for what they would pay to exercise their options. Net values set accurate expectations by showing equity value after exercise costs.

However, gross values may be clearer in some contexts:

• Companies that primarily grant RSUs, where exercise costs are minimal
• Pre-IPO companies where exercise pricing details are still evolving
• Candidates comparing offers who want to see full market value

Choose the mode that matches how you communicate:

Employee equity mode:

• Net Equity (default): Shows equity value after deducting exercise costs

  • Use when: You want employees to see equity value after accounting for what they would pay to exercise
  • Impact: Sets realistic expectations by showing the spread rather than the full market value

• Gross Equity: Shows the full market value without deducting exercise costs

  • Use when: You want to emphasize total equity value or your company primarily grants RSUs where exercise costs are minimal
  • Impact: Higher numbers, but does not reflect what employees would pay to exercise options

Candidate equity mode (same options, separate setting):

• Net Equity (default): After deducting exercise costs
• Gross Equity: Full market value without deducting exercise costs

Configure employee and candidate modes independently based on how each audience thinks about compensation.

To configure: Settings > Communicate > Compensation > Equity > Employee equity mode / Candidate equity mode

Equity values and shares: Control information density

Why it matters: Too much information overwhelms employees. Too little leaves them confused. These settings let you match display to your employees' equity literacy and your compensation philosophy.

Show equity values (default: on, employees/candidates only)

• What it does: Display the cash value of equity grants
• When to turn on: Employees understand equity better with dollar values
• When to turn off: You want employees to focus on ownership (share count) rather than dollar value, or share prices are volatile and misleading
• Impact: Off = employees see only share counts, not dollar values

Show vested shares (default: on)

• What it does: Include shares that have already vested in the equity display
• When to turn on: Employees should see their complete equity picture, including what's already theirs
• When to turn off: You want to emphasize future vesting and forward-looking value
• Impact: Off = only unvested shares appear

Show negative growth (default: on)

• What it does: Display negative growth when share price decreases in future modeling
• When to turn on: Transparency about downside scenarios helps employees make realistic plans
• When to turn off: You want to avoid highlighting negative scenarios that could demotivate employees
• Impact: Off = negative growth is hidden in slider projections

Show all growth (default: on)

• What it does: Show all potential growth as share prices change in future modeling scenarios
• When to turn on: Employees should see continuous growth possibilities across all valuations
• When to turn off: You want to focus only on specific milestones (IPO target, acquisition scenarios)
• Impact: Off = only growth at predefined milestones appears

Show Learn the Basics (default: on, employees/candidates only)

• What it does: Display the Learn the Basics popup in the equity section
• When to turn on: Employees need education about equity concepts (vesting, exercise, valuation)
• When to turn off: Your employees are already equity-savvy or you provide education elsewhere
• Impact: Off = removes educational content from the equity display

To configure: Settings > Communicate > Compensation > Equity

Original grant value: Highlight equity appreciation

Why it matters: When share price increases, employees can't see how much their equity has grown unless you show the original grant value. Displaying this appreciation reinforces equity's value and drives retention.

Without original grant value, an employee sees "$200,000 in equity" but doesn't know if it started at $50,000 (4x growth!) or $190,000 (minimal growth). The growth story is the retention story.

Choose the granularity that fits your communication:

• Do not show (default): Original grant values are hidden

  • Use when: Share prices are flat or declining, or you want to emphasize current/future value only
  • Impact: Employees don't see how much equity has appreciated

• Per grant only: Show original value for each individual grant

  • Use when: Employees should see growth for each grant separately
  • Impact: Employees can track exactly how much each grant has appreciated

• Annual vesting only: Show aggregated original value by vesting year

  • Use when: You want to show annual trends without overwhelming detail
  • Impact: Employees see yearly appreciation patterns

• Per grant and annual vesting: Show both per-grant and annual aggregated original values

  • Use when: You want maximum transparency and employees can handle detailed data
  • Impact: Complete visibility into equity appreciation at both grant and annual levels

To configure: Settings > Communicate > Compensation > Equity > Show original grant value

Slider growth type: Enable realistic future planning

Why it matters: Employees use the slider to answer "What if the company succeeds?" Different companies define "success" differently:

• Growth companies think in terms of milestones: "What if we hit $50/share at IPO?"
• Mature companies think in terms of annual growth: "What if we grow 15% per year?"

The slider type should match how your employees naturally think about future value.

Choose the model that fits your company narrative:

• Future value (default): Slider sets a specific future share price or valuation target

  • How it works: Moving the slider to "$50/share" shows what equity is worth if shares reach $50, regardless of current price
  • Use when: You have target valuations or milestones (IPO price, acquisition scenarios)
  • Best for: Pre-IPO companies, companies with clear valuation goals
  • Employee question answered: "What if we reach [milestone]?"

• Year on year growth: Slider applies a growth rate that compounds annually

  • How it works: Setting "20% growth" means shares grow 20% each year (Year 1 = $12, Year 2 = $14.40, Year 3 = $17.28)
  • Use when: Your company communicates in terms of annual growth rates
  • Best for: Public companies, mature private companies with steady growth
  • Employee question answered: "What if we keep growing at [rate]?"

To configure: Settings > Communicate > Compensation > Equity > Slider growth type

Equity currency conversion: Clarity for international employees

Why it matters: International employees struggle to understand equity value in a foreign currency. Converting to local currency makes equity feel real and enables financial planning.

However, share price is typically standardized globally. Converting it can create confusion if employees see different "share prices" based on currency.

Choose the conversion level that balances local clarity with global consistency:

• Values and share price (default): Convert both equity values and the share price

  • Use when: You want complete localization, and employees understand share price is currency-converted
  • Impact: Maximum local clarity, but share prices differ by country
  • Example: US employee sees $50/share, UK employee sees £40/share (same economic value, different number)

• Values only: Convert equity values but keep share price in company currency

  • Use when: You want to show local value while maintaining consistent share price globally
  • Impact: Employees see grant values in local currency but share price in company currency
  • Example: UK employee sees "£80,000 in equity at $50/share"

• Do not convert: Display all equity values in company currency

  • Use when: You want global consistency, or most employees can work in company currency
  • Impact: International employees must convert mentally or use external tools
  • Example: All employees worldwide see US dollars

To configure: Settings > Communicate > Compensation > Equity > Equity currency conversion

Calculating vested equity: Historical reality vs current value

Why it matters: Vested shares have two possible values:

1. What they were worth when they vested (historical fact)
2. What they're worth today (current value, potentially much higher)

Each tells a different story. Historical values show what employees actually received. Current values show how much vested equity has appreciated, which can drive retention when share price increases.

Choose the calculation that matches your equity narrative:

• Value at time of vest (default): Uses the closing price on the vest date without applying subsequent growth

  • What it shows: The actual value employees received when shares vested
  • Use when: You want to show historical accuracy and avoid retroactive revaluation
  • Impact: Vested equity value is fixed at vest date, doesn't increase with current price
  • Employee sees: "You received $50,000 when these shares vested in 2023" (even if worth $80,000 today)
  • Best for: Companies prioritizing historical accuracy

• Value based on modeled share price: Uses the share price set in the slider

  • What it shows: Current or projected value of vested shares (applies slider value retroactively)
  • Use when: You want to show how much vested equity has appreciated or could be worth
  • Impact: Vested equity value changes with slider, showing growth story
  • Employee sees: "Your 2023 vested shares are now worth $80,000" (at current $50/share vs $30/share at vest)
  • Best for: High-growth companies highlighting appreciation
  • Note: Calculation behavior depends on slider growth type (Future value vs Year on year growth)

To configure: Settings > Communicate > Compensation > Equity > Calculating vested equity

Configure cash compensation display

Why it matters: "Bonus" isn't self-explanatory. Does it mean target, guaranteed, or historical? Is "variable" commission or something else? Without clear labels and descriptions, employees misunderstand their pay, leading to questions and dissatisfaction.

Custom labels and descriptions turn generic field names into meaningful communication that matches your compensation philosophy.

Customize headers and descriptions: Use your company's language

What it does: Replace technical field names with language employees actually use and add context to prevent confusion.

When to customize:

• Integration field names are technical ("annualBonus" instead of "Annual Bonus")
• You need to clarify bonus types (target vs actual, guaranteed vs performance-based)
• Variable compensation needs explanation (commission structure, calculation method)
• You want to add context about timing, eligibility, or calculation

How to configure:

1. Navigate to Settings > Communicate > Comp Types
2. Select the compensation type to customize
3. Edit the employee panel or candidate panel:
   • Label: The header shown for this compensation type (e.g., "Base Salary", "Target Annual Bonus", "Sales Commission")
   • Description: Explanatory text displayed below the value (e.g., "Paid bi-weekly", "Target amount based on company and individual performance", "Calculated monthly on quota attainment")

Default labels:

• By default, all compensation types use the integration field name
• Leave descriptions blank if the label is self-explanatory

Configure separately for employees and candidates:

• Employees may need detail about calculation or timing
• Candidates may need higher-level explanation or context about philosophy

Example customizations:

• Label: "On-Target Earnings (OTE)" | Description: "Base salary plus target commission at 100% quota"
• Label: "Annual Bonus" | Description: "Target amount paid annually based on company performance. Actual bonus may vary from 0-200% of target."
• Label: "Equity Refresh" | Description: "Annual equity grant awarded based on performance review"

To configure: Settings > Communicate > Comp Types > [Select compensation type] > Employee Panel / Candidate Panel

Show or hide compensation types: Focus on what matters

Why it matters: Not all compensation data belongs in employee-facing tools. Showing too many types creates clutter. Hiding irrelevant or confusing types keeps the display focused on what employees need to know.

When to hide compensation types:

• Technical or internal tracking: Pay types that exist for payroll but aren't meaningful to employees
• Deprecated programs: Old compensation structures no longer in use but still in historical data
• Zero or null values: Compensation types not applicable to most employees
• Confusing without context: Complex types that would require extensive explanation
• Candidate-only or employee-only types: Information relevant to one audience but not the other

Impact of hiding:

• Hidden types don't appear in Total Rewards or Visual Offer Letter
• Data remains visible in admin tools and reports
• Simplifies the employee/candidate view

How to configure:

1. Navigate to Settings > Communicate > Comp Types
2. Find the compensation type
3. Toggle "Show in Portal" on or off

To configure: Settings > Communicate > Comp Types > [Select compensation type] > Show in Portal

Actual vs target bonuses: Set accurate expectations

Why it matters: Confusing target bonuses with actual bonuses causes major expectation mismatches. Employees who see "Bonus: $20,000" expect to receive $20,000, but if that's a target, actual payout could be $0-$40,000 depending on performance. This confusion leads to dissatisfaction and credibility loss.

How Pave distinguishes target from actual: Pave automatically categorizes bonuses based on the isTarget field from your HRIS integration:

• isTarget: true → Displayed as target/expected bonus
• isTarget: false or missing → Displayed as actual/guaranteed bonus

If bonus types appear incorrectly:

1. Verify the bonus configuration in your HRIS: Ensure target bonuses are marked correctly in your source system
2. Check integration field mapping: Confirm the mapping includes the isTarget attribute
3. Default behavior: Bonuses without an isTarget value default to actual (not target)

Note for legacy integrations: isTarget is the current standard for bonus classification. Some legacy implementations may use annualBonus field mappings. Best practice for labels: Use the Customize headers and descriptions section to add clarity in labels:

• Target bonus: "Annual Bonus (Target)" with description "Actual payout varies based on performance"
• Actual bonus: "Guaranteed Annual Bonus" or "Annual Bonus" without qualifier

Reorder compensation tiles: Tell your compensation story

Why it matters: Order creates emphasis. The first compensation type employees see sets the tone for how they understand their total package. Different companies have different priorities:

• Equity-first companies lead with equity to emphasize ownership
• Cash-first companies lead with base salary to emphasize stability
• Sales organizations might lead with variable/commission to emphasize performance

Order also affects comprehension. Grouping related types together (all equity types, all cash types) makes the display easier to scan.

How to configure:

1. Navigate to Settings > Communicate > Compensation > General
2. Select "Reorder compensation tiles"
3. Drag compensation types to reorder them
4. Choose whether to apply the order to employees, candidates, or both
5. Save changes

Configure separately for employees and candidates:

• Candidates may benefit from equity-first ordering to differentiate your offer
• Employees may benefit from cash-first ordering for practical budgeting

Default order: If no custom order is configured, compensation types appear in this sequence:

1. Stock (common stock, options, RSAs, RSUs)
2. Cash (base, variable, bonuses)
3. Benefits

New compensation types added after custom reordering appear at the bottom of the list in alphabetical order.

To configure: Settings > Communicate > Compensation > General > Reorder compensation tiles

Default settings

Default values are noted throughout this document with "(default)" next to each option. All defaults apply when first accessing compensation settings or for newly integrated compensation types.