TC is "Total Compensation" right? As in salary + equity and other benefits and etc? Or does it usually refer to just cash salary?
Ahh interesting, I assumed it included things like bonuses and equity, but am surprised to learn 401k contributions are not considered TC. Is this the case even for matched contributions made by the employer?
Meaning if I contribute x (money I was compensated already as a portion of salary), and employer contributes %/x (money the company effectively "gives" me), is that percentage not considered part of the "TC" terminology? OR am I exhibiting an unfortunate misunderstanding of 401k matches?
The rubric for all of these complicated and indirect forms of compensation is "benefits". These benefits are significantly limited in terms of practical cash value and rules around their use by regulation, whereas there is no bound on TC.
For example, an employer who does a 1:1 match up to the IRS limit would be contributing at most ~$20K to your total comp, but when you're dealing with the rest of the package being in the $500K-1M range it tends to get glossed over.
You're exactly right. Signing bonuses - and even equity compensation - are designed to lower your TC over time. The idea is that companies offer a high TC to entice you through the door, with the understanding that at the end of your 4 years your TC will drop precipitously but at that point you'd be too invested/too afraid to interview/etc to leave.
This is why in nearly all companies equity refreshers are always significantly smaller than what would be necessary to keep your TC level. The point is to over several years converge you to a lower TC that is middle of the pack rather than the top-of-band packages FAANGs have to offer to recruit candidates.
It does seem ass backwards - and if you're an engineer who cares a lot about TC (IMO rightly so) and interview well, you will consistently cliff out every 4 years as a result.