Table of Contents
- Airbnb Offer Compensation Components
- Airbnb Negotiation Process
- Airbnb-Specific Negotiation Advice
Airbnb Offer Compensation Components
Before starting any negotiation, it is important to understand the compensation structure offered by each company you're speaking with. Airbnb offers the following compensation components for Software Engineers:
- Base Salary
- Signing Bonus (also known as Hiring Bonus or Joining Bonus)
- Equity (also known as Restricted Stock Units - RSUs)
- Performance Bonus
- Stock Refreshers
Below is a G8 Software Engineering offer at Airbnb.
Note: stock refreshers likely won't be listed in the offer letter, but they are expected at Airbnb. Ask your recruiter about this for more information on ranges.
Depending on where you're located, the base salary offered by Airbnb will differ, along with the rest of the compensation components. Airbnb compensates people according to the cost of living in their respective location, as well as the going market rate for engineers in the area, so it's important to be mindful of how your location will affect what you're paid. If you are not in the Bay Area, NYC or Seattle, your comp will likely be lower than the numbers you find online.
With that being out of the way, base salary at Airbnb, unsurprisingly, is the component that moves the least when negotiating. Airbnb has a small band for base salary within each level, so you'll likely only see your base move by a maximum of $30k.
Stock Options or Restricted Stock Units (RSUs)
Like many companies at this size, Airbnb's most negotiable compensation component is RSUs. We've seen the stock grants for G9 Software Engineers in the Bay Area range from $600k over 4 years, to $800k over 4 years. That range for equity continues to increase as the levels increase.
At Airbnb, RSUs are subject to a 4-year vesting schedule: 25% vests at the end of the 1st year cliff, then 25% in each of the 2nd, 3rd, and 4th years (6.25% every 3 months). For example, if you were given a stock grant of 400k over 4 years, the equity would vest as follows:
- Year 1 - 25% $100k
- Year 2 - 25% $100k
- Year 3 - 25% $100k
- Year 4 - 25% $100k
Airbnb is more reluctant to pay out signing bonuses, but they will do so if sufficient leverage via competing offer or retention bonus is presented. The signing bonuses offered are not as competitive as some other companies. For example, Facebook will offer up to $100k signing bonuses for E5 software engineers, while at Airbnb signing bonuses for G9 will max out at around $50k.
Airbnb will pay out the full signing bonus in year 1 - we have not seen them split it over 2 years, which Microsoft and Snap are known for doing. One important thing to be aware of is when presenting competing opportunities, Airbnb may say "we've matched your requested yearly compensation in year 1 with the signing bonus". This is a common trap recruiters set for candidates, to encourage them to sign despite the fact that their compensation decreases from year 2 onwards. To mitigate this, make sure to present compensation either as a 4-year value, or divide the signing bonus over the 4 years and factor that into the yearly compensation requested.
Airbnb does offer performance bonuses, which is a very important thing to be aware of when negotiating, especially when other companies you are talking to don't offer a comparable bonus structure. One interesting aspect is that Airbnb does not apply a company multiplier to performance bonuses, which they do for stock refreshers (more on the below). Here are the target bonus numbers for Airbnb:
- G7 - 10%
- G8 - 15%
- G9 - 20%
- G10 - 25%
- G11 - 30%
Of course, performance bonuses are non-negotiable, but if negotiating with a company like DoorDash that doesn't offer these bonuses, you can always factor it into your counter offer's base salary as your "yearly cash amount".
Airbnb issues stock refreshers annually, which stack on top of the initial equity grant you receive. However, detailed information about the range for these refreshers and when they'll be given out is not mentioned in the offer letter. Your recruiter will be the best source of information about current targets (which vary by role/level/location) especially as the company continues to grow.
Stock refreshers at Airbnb have a multiplier based on your job performance and the company's performance as well. Airbnb refresher multipliers aren't officially communicated but generally are as follows:
Meets Expectations = 1 x refresher grant total
Exceeds Expectations = 1.25 x refresher grant total
Greatly Exceeds Expectations = 2 x refresher grant total
Redefines Expectations = 3 x refresher grant total
Target numbers are potentially changing in 2022 as the company moves to a more stable post-IPO structure, but for now, we've seen the following:
- G8 ~$100k
- G9 ~$180k
- G10 ~$300k
- G11 ~$530k
These refreshers will begin after year 1, and vest evenly over 4 years. You will continue to accrue refresher grants on a yearly basis.
Airbnb Negotiation Process
Candidates often find it helpful to have a high-level overview of the negotiation process. But before diving into that, it's important to understand how Airbnb's levels compare to other tech companies.
One key point to be aware of is that Airbnb has recently changed the verbiage around their leveling system, which will be addressed below. The old leveling verbiage tracks closely to Google's leveling system (i.e. L5 is equivalent to senior software engineer).
- G7, this is typically new grads, formerly called L3.
- G8, formerly called L4
- G9, formerly called L5
- G10, formerly called L6
- G11, formerly called L7
This leveling change is still fairly new, so don't worry if you accidentally use the wrong terms with your recruiter. One other thing to note is that they'll frequently drop the "G", just calling the levels by their numbers instead. This change is another reason why a lot of the data online can be misleading, since there is a big difference between G7 and the old L7.
If you have not yet received an offer from Airbnb, here are some common pitfalls to avoid:
- Do not share your current compensation. In many states (e.g. California) it is illegal for companies to ask this, so you are certainly within your rights to say "I do not feel comfortable sharing that information"
- Do not share your compensation expectations. This is a common request now that recruiters are not able to ask about your current compensation. It is certainly harmful to share a low number but sharing a very high number can also be a bad start to the negotiation, as this will increase the likelihood that you are asked for proof of a competing offer. Instead, reply with something along the lines of "Right now I'm focused on the interview process and don't have a number in mind, but I'm confident we will be able to get to a number that works for both of us"
With that out of the way, let's discuss the negotiation process at Airbnb:
- After finishing up your onsite, you will hear back from your recruiter within a few days.
- They will reach out to setup a call, often saying something along the lines of "I have some exciting news to share". This is the offer call. It's usually a good idea to ask your recruiter a number of questions on this call to gather information you will need for the negotiation. Interview performance is one of those important questions, but at Airbnb interview scores have less of an impact on compensation vs at companies like Google.
- On the offer call, the recruiter will usually push you for compensation expectations. It is not as easy to deflect these requests at Airbnb. Your recruiter will often hold firm and reiterate their need for you to give expectations, which they will then use to put together the first offer. Setting the right anchor here is critical.
- Once you have the initial offer, we recommend you take some time to digest the offer and consider the best point of leverage for your counter offer discussion.
- You should then setup your second call with the recruiter to discuss the offer. On that call you will disclose your counter offer. The recruiter will likely push back and at Rora we build a tree diagram unique to your situation with the most likely objections and the optimal responses to those objections. The goal is to get the recruiter to take your counter offer number back to the comp team.
- If your counter offer is above band, the recruiter will need special approvals/exceptions from the comp team. If they get those approvals, they will then share the updated numbers with you to get your sign off before generating the formal written offer. This is to avoid multiple rounds of negotiation and you potentially leveraging the offer in other negotiations. As a side note, the Airbnb comp team works separately from the hiring committee, which just focuses on leveling.
- When you get an updated offer, it is possible to push back again, but your recruiter will likely be reticent to take your request back to the comp team unless you have new information to bring to the table.
Can I Lose my Airbnb Offer by Negotiating?
This is far and away the number 1 question Rora’s career partners are asked. It is a very common and valid fear, especially in today’s volatile economy. But what’s the actual probability that, when negotiating with Airbnb, they would decide to pull the offer?
First, let’s discuss what benefits it would have for Airbnb to rescind the offer. The primary reason a hiring manager would elect to rescind an offer would be a fear of liability with their intended hire - i.e., this hire may cause a scandal, this hire will in no way be able to perform their duties, this hire will be detrimental to Airbnb, etc. Aside from that, by the time an offer has been extended, Airbnb has already invested a substantial amount of time and money into the candidate they’re giving an offer to, and should have a solid understanding of how this candidate will perform in the role. It would be a net loss for the company to go through all those interviews, conversations, and putting together the offer to then decide that they want to cut ties with the candidate – this is something they try to de-risk before giving an offer.
Even in this economy, we have seen clients get increases in their offers from companies of all sizes by making respectful and well-reasoned requests. It’s very unlikely a company would pull the offer based on negotiation - in our experience, we’ve seen this happen less than 0.5% of the time. And that includes companies that are on hiring slowdown/freezes right now.
Now, there is a fundamental difference between getting an offer rescinded and losing the offer due to headcount. A headcount loss is solely based on the state of Airbnb and the necessity of the role within the team. This isn’t common but can occasionally happen if needs at the company shift – and is more common with earlier-stage startups. It is not reflective of your interview performance or skill level, and oftentimes companies will try to keep in touch with you and share other opportunities once headcount opens up. If your offer was rescinded, the company would not have any interest in keeping you warm.
Regardless of the low likelihood of getting an offer rescinded, we know that this is a very common fear – and one that often holds candidates back from negotiating! To help mitigate the risk (and increase your confidence while negotiating) - follow these dos and don’ts to lower the probability of your offer getting rescinded:
- Do keep it professional - avoid getting into politics or making jokes that may be poorly received and make your hiring manager think you might be a liability to the company
- Do give justification and reasoning behind your ask for increased compensation – this could be based on your market value, another opportunity you have, specific expertise you bring to the table, or the strong relationship you’ve built with your hiring manager
- Do your first compensation ask over a phone call - in most cases we see a higher rate of success and understanding when the first ask is done over a call versus an email
- Do demonstrate to your hiring manager that you’re a solid candidate who would be a strong hire by creating and collaborating on an impact roadmap (outlining your 30 day, 60 day, and 90 day goals for getting started in your new role and your understanding of the priorities for this position)
- Do your best to understand the necessity of the role on this team - How critical is it? How long has the role been open for? This can help you determine the likelihood of the headcount being lost – and also the leverage you may have in negotiating
Airbnb-Specific Negotiation Advice
Not always able to match offers: Airbnb is often competing with FAANG companies for top tier engineers. Airbnb will usually match Google, Amazon and Apple offers. In those scenarios, the goal is to get them to beat your competing offer by the largest margin possible. With Facebook and Netflix cross offers, Airbnb is typically unable to match and different negotiation tactics are required.
Willing to give time: Despite their eagerness to close the negotiation process and lock-in the best engineers, Airbnb knows that pushing hard deadlines on offers will scare candidates off, so they tend to be more willing to give additional time for candidates to respond as needed. We rarely run into hard deadlines when negotiating with Airbnb.
Rarely uplevels: Some companies, like Facebook and Amazon, may be more willing to negotiate level placement if the candidate pushes back. At Airbnb, they will only reconsider your leveling placement if you have a hiring manager backing you throughout the process. Having a strong manager relationship is key if you feel that you've been downleveled. As a note, the hiring committee determines leveling placement exclusively, hence the difficulty in changing leveling placement once decided.
Willing to negotiate: Despite their reluctance to move on level, compensation is a different story. Airbnb is always fighting for strong engineers and is willing to pay what they can to get folks to sign on the dotted line. They may not be able to match your Facebook or Netflix offer 1 to 1, but they will work to get you an offer that's more competitive, and with their strong stock refresher package, the offer may end up being higher than initially expected.
Unique perks: One of the unique benefits of working at Airbnb is the paid company holidays they offer. Along with the standard bank holidays, they also declare December 20 - January 1 a company holiday, allowing families to take extended time off without having to schedule vacation. They also offer competitive relocation bonuses, often providing up to $20k, depending on the move and the amount of people relocating with you.