Compensation & Pay Transparency at Sourcegraph

Pay philosophy overview

Generous: We want to pay more competitively than most companies, so we leverage aggregate data from thousands of technology companies based in zone 1 - the high cost of labor zone (using Radford salary survey data and/or external compensation experts). We then compensate all teammates at the 75th percentile of their respective salary band as a starting point. This means that teammates can expect to be paid above average while working at Sourcegraph. Salary bands are determined based on 1) role 2) level and 3) location.

• We re-evaluate our compensation ranges every 12 months, in alignment with our Impact Review Process, to ensure our compensation remains up-to-date and market competitive. This means that every 12 months, our band entry point may go up, down, or stay the same. And if our band goes down, we will never decrease our teammate’s pay.
• We believe opening up offers to negotiations can lead to inequitable and biased compensation in the long term, so we only negotiate compensation if there’s a business-critical need to do so (this requires approval by the Executive sponsor, Head of People, Head of Ops, and CEO).
• Note: the People Team owns the compensation strategy and ultimately has the right to make final band determinations when Radford (our primary data source) doesn’t align with the needs of the business.

Performance-based: We pay for performance in order to motivate and retain our teammates. We reward strong performance through merit increases, promotions, annual equity refreshes, and spot bonuses. You can read more about our merit process here. Read more about how we create a high performance culture here.

• We use our annual performance review process(aka Impact Reviews) to evaluate teammate performance, which directly influences compensation increases. This means that teammates who are considered top performers (“superior performance” or “distinguished performance”) may move up the band faster than teammates who are not meeting our high bar (“meeting” or “partially meeting” scores). Teammates who do not meet our performance expectations do not receive increases. You can read more about our performance ratings in the “Ratings definitions'' section of our Impact Review Handbook page.
• We will consider off-cycle compensation increases on an as-needed basis, based on the business need only. We do not factor in how frequently someone requests a raise; all compensation changes are based on business needs and compensation data. To make a request, a Manager must reach out to their People Partner + Head of People.

Zone-based: We have a zone-based location pay model to ensure we’re paying competitively and building the right team to be able to reach our goals fast. When a hiring manager opens a new role, they specify which locations they’re open to in the job description. To determine our compensation ranges for each zone, we identify the 75th percentile of US tech company market data in high cost of labor zones (zone 1) only, and establish this as the entry point for our zone 1 salary band. In order to simplify our compensation philosophy, we determine our other three location-based zones as a % of zone 1.

• All locations and the corresponding zone % are listed here (internal-facing document only).
  • Zone 1 entry point is the 75th percentile of US technology company market data. The top of the band is set at ~15% above the band entry point. This means that our compensation band entry points are above market and competitive from the outset, with plenty of room to grow as teammates progress in their respective band.
  • Zone 2 entry point is determined by taking 80% of zone 1 entry point. The top of the band is +15%.
  • Zone 3 entry point is determined by taking 60% of zone 1 entry point. The top of the band is +15%.
  • Zone 4 entry point is determined by taking 40% of zone 1 entry point. The top of the band is +15%.
• All internal teammates have access to the salary bands for each zone via Assemble, and all candidates have visibility into all zones via job postings on our careers page. If we are missing a country, please let us know and we’ll add it to our list.
• If you believe that we’ve assigned a location to the wrong zone or a compensation band seems wrong, please tell us by filling out this form and we will review immediately. Our aim is to always pay above average, competitively, and fairly. The People Team reserves the right to manually adjust any band at any time to benefit the business and our teammates.

Transparent: We provide visibility into all roles, levels, and location-based zones via job descriptions and Assemble. This means that every teammate can see the salary bands for all roles across the company. Salary transparency enables accountability for all compensation decisions (hiring, promotions, merit) and ensures parity across location, levels and performance.

• Teammates hired before April 4, 2024 are grandfathered in under our previous location-independent pay philosophy. This means that all teammates who applied and/or were hired before April 4, 2024 are paid under the pre-existing policy which paid everyone the same, regardless of location.
• All teammates who apply and/or are hired after April 4, 2024 are paid under our zone-based pay philosophy.

Other components of compensation

In addition to providing a competitive base salary, we offer:

• Equity
• Perks
• Commission and/or bonus to revenue-generating teammates
• Benefits (only applies to US-based teammates)

Equity: We want to make sure that everyone has a financial stake in our success and that contributions are rewarded. All equity grants have a standard 4-year vesting with a 1-year cliff, and a 10-year exercise window. You can find more details in our equity FAQ and our Handbook page on how and when stock option grants are calculated.. Equity follows the same zone-based philosophy as compensation. This means that Zone 1 teammates will receive an equity grant at the 75th % of US technology companies. Teammates who live in:

• Zone 2: will receive 80% of zone 1 teammates
• Zone 3: will receive 60% of zone 1 teammates
• Zone 4: will receive 40% of zone 1 teammates.

Commission: We provide variable compensation in the form of commissions for roles that are measured by numerical performance. At this point, only certain roles in the Sales and Technical Success organizations are eligible for commission. You can read more about commissions here.

Perks & benefits: We want our teammates to be happy, healthy, and productive. In order to best support that, we provide competitive perks and benefits.

Relocation & compensation

If a teammate is planning on moving, we will consider adjusting their salary if they move to a higher cost-of-labor zone. In this case, teammates must request approval for this change in advance of the move, and an increase is never guaranteed (we have a predetermined headcount budget). To request approval, teammates need to send an email to their manager, the people team (people-team@sourcegraph.com), and finance (finance@sourcegraph.com). Teammates must be employed for a minimum of 6 months in order to be eligible for a move-related increase, and we will not approve more than one compensation change due to location change within a 12-month period. Before a move, please be sure to talk to your manager about your performance and working hours expectations, as well as your availability for team gatherings.We will never decrease a teammate’s salary.

For existing teammates: how to see salary bands

At Sourcegraph, all teammates are able to view all compensation bands, not just their own. We believe this transparency creates clear accountability for compensation decisions and helps us maintain pay parity.

We use a tool called Assemble to share compensation data. To access Assemble:

1. Navigate to: https://app.assemble.inc/
2. Log in using Okta

Step 1: Look up your job code and location zone in Bamboo

1. Login to Bamboo
2. Click “My Info” at the top of the page
3. Select the “Job” tab on your profile
4. Scroll down to the “Compensation” header
   • a. Find your Radford Job Code. The last two digits of the code indicate your role and level.
   • b. Find your location zone.

• Example: a teammate’s profile lists the following information. The “P” in the Radford code indicates that this person is an Individual Contributor and the “1” indicates a level 1. In assemble, you would search for “HR.GLBP.P1 - Zone 1” to their range.
  • Radford code: HR.GLBP.P1
  • Location-zone: Zone 1
• Example: a teammate’s profile lists the following information. The “M” in the Radford code indicates that this person is a Manager and the “3” indicates a level 3. In assemble, you would search for “HR.GLBP.P1 - Zone 3” to their range.
  • Radford code: HR.GLBP.M3
  • Location-zone: Zone 3

Step 2: Use your job code to find your band in Assemble

1. Navigate to: https://app.assemble.inc/
2. Log in using Google SSO
3. Click “Foundations” on the left sidebar
4. Select your Department
5. Select your Career Ladder (this should match your job title)
6. Find your Title + Radford job code + Location-zone

• You’re also able to see other job codes/bands within your own career ladder on this page.

To find your team’s compensation bands (Managers only)

1. Click “People” on the left navigation bar
2. Select “My Team” at the top of the page
3. Bands will be visible on this page

Assemble displays placement in band as “Below,” “In Band,” or “Above Band.” As a reminder, we expect teammates to be within the band, so if you’re below the band please flag it ASAP to the People Team. Teammates new to the role will be at the entry point of the band.

Getting paid

You can read more about payroll here.

• US teammates: on a semi-monthly payroll cycle. Paydays are on the 15th and the last day of every month (or the closest business day prior to those dates). Paystub information is hosted in Rippling.
• Non-US teammates: on a monthly basis through Airbase or a PEO. If not on a PEO, to be paid, you will have to submit an invoice to Finance. Please see instructions on how to do so here. Exchange rates Because we benchmark against US-based data, we use currency conversations for international teammates who are employed via an EOR/PEO model on our vendor Deel. The Sourcegraph finance team is responsible for determining the currency conversion rate used when teammates are paid in their local currency as opposed to US dollars. The currency conversion rate is applied to base salary and bonuses/.

Exchange rates

Because we benchmark against US-based data, we use currency conversations for international teammates who are employed via an EOR/PEO model on our vendor Deel. The Sourcegraph finance team is responsible for determining the currency conversion rate used when teammates are paid in their local currency as opposed to US dollars. The currency conversion rate is applied to base salary and bonuses/commissions.

To determine a fair and reasonable currency conversion rate, and in order to ensure that all teammates are paid consistently, the Sourcegraph Finance team will review currency conversion rates on an annual basis, and the currency conversion rates that are determined at these intervals will be used for all pay adjustments, and all new hires, for the 12 months following this review. To calculate the currency conversion rate, the Sourcegraph Finance team will take the trailing 12-month average.

You can read more about how we determine exchange rates here.

FAQ

Pay transparency:

• Q. Is pay data anonymous? Can I see exactly who makes what?
  • A: At this point, all pay data is anonymized. The only information you can see, outside of your personal compensation details, are pay bands for every role in each department. You cannot see another teammate’s pay.
• Q. What components of pay are transparent?
  • A: Currently compensation bands are transparent (this includes cash pay, or cash + commission-based pay). bands for other teammates are not visible.
• Q. Who can see our compensation bands?
  • A: Sourcegraph teammates. During the recruiting process, our recruiting team will share our transparent approach to compensation with candidates along with target compensation that’s shared in all job descriptions; however, all compensation bands are not visible outside of Sourcegraph.

Leveling:

• Q. Where do I learn more about job leveling at Sourcegraph?
  • A: For information about leveling at Sourcegraph, check out the Sourcegraph Leveling Guide. For department-specific career development frameworks, check out this handbook page. We have a leveling system unique to Sourcegraph, which means a Level 3 at our company is NOT necessarily equivalent to a Level 3 at another company.
• Q. Where can I view my level?
  • A: You can view your job level in BambooHR. From the BambooHR homepage, click “My Info” on the top navigation bar. Select the Job tab and scroll down to the Compensation section. Here, you will find your Radford code. The last two digits of the code indicate your role and level. Example: HR.GLBP.P1 - the “P” indicates that this person is an Individual Contributor and the “1” indicates a level 1. Example: HR.GLBP.M3 - the “M” indicates that this person is Manager and the “3” indicates a level 3
• Q. Where can I view other teammates’ levels?
  • A: Currently, you can view teammates’ job levels in Bamboo by going to the teammate’s profile under the ‘Job Tab’.
• Q. My level is M4 and I have a Director title. Another teammate’s level is M5 with a Director title. Why is there a difference?
  • A: Our internal titles may vary from team to team; however, we always match our internal jobs to external salary data by focusing on core competencies, rather than title naming conventions.
• Q. My level surprises me, or I’m not sure what my level is - who can I speak to?
  • A: Start with your manager if you have any questions about your compensation level or Radford code match. You can also reach out to your People Partner to discuss.

Band placement:

• Q. My pay appears to be below the band - what does that mean for me?
  • A: The only time a teammate’s salary may fall below the 75th percentile in Assemble is if their salary is calculated & fixed in a non-USD currency and the exchange rate has since fluctuated. This indicates that a teammate’s local currency has dropped (as it relates to USD) since accepting their offer or promotion. At the time of acceptance, all offers are at the 75th percentile. We do not immediately rightsize compensation in these instances as we can’t control currency fluctuations. If you believe your salary is below the 75th % and it is not due to currency fluctuations, we are happy to look into it. Please contact your People Partner.
• Q. Inflation is currently high in the US, and other parts of the world. How is inflation taken into account when calculating compensation?
  • A: By leveraging market data and benchmarking our roles every 12 months, we move as the market moves. This ensures we stay competitive, and continue to pay at the 75th percentile, in times of stability or market volatility and inflation. Salary band and merit increases do not match the rate of inflation. Here is a good article explaining why inflation and salary increases are not the same.
• Q. If we hire externally into the entry point of our salary bands, why are some teammates paid higher in band, or even above band?
  • A: Most teammates are hired into Sourcegraph at the 75th percentile of their respective band at the time their offer is made. Using our pay-for-performance methodology, we offer several opportunities for teammates to receive increases that reward and recognize impact, meaning some top-performing teammates may move up the band faster than others. Read about our merit increase philosophy here.
• Q. How do I move up in my band?
  • A: Teammates are hired at the entry point of the band, unless an exception is made and move up the band during performance reviews. Due to merit increases, some teammates may exceed their respective band over time if their performance is strong. Learn more about our impact reviews here.
• Q: I’m at the entry point of the band, does that mean I’m underpaid?
  • A: No, our band entry points are set competitively and at the 75th percentile of US-based technology companies. Teammates have regular opportunities to receive pay increases through our impact review cycles and promotion. We hire all new teammates into our band entry point - it’s how we’re able to hire and retain amazing talent.
• Q. My pay is above the band - what does that mean for me?
  • A:. In rare instances, we allow salaries to exceed the tops of our bands. We strive to give meaningful merit and promotion-related increases, regardless of position in the band. This means individuals paid above their band can still receive increases. We may also utilize other options to reward performance such as spot bonuses and/or grants.
• Q. How often are bands updated?
  • A: We update bands once every 12 months, in tandem with our Impact Review process. In rare instances, we update the band mid-year if we receive feedback that our band is misaligned with market data and if Radford suggests the market has significantly changed from the original date the band was set. When bands are updated, we provide immediate market adjustments to all teammates so no one falls below the band entry point. Generally speaking, revisiting bands every 12 months helps avoid market volatility and allows us to extend offers to external candidates consistent with internal pay. If a teammate feels that their band is incorrect, we are happy to look at the compensation data off-cycle.

Zone-based pay:

• Q: Why does Sourcegraph use a zone-based approach to pay?
  • A: The goal of our zone-based pay model is to pay above market average regardless of a teammate’s location. That said, salaries can vary significantly between regions due to local market conditions and competition for talent. A zone-based model allows us to remain competitive in each local market, ensuring we’re able to attract and retain talent in different regions in alignment with local norms and expectations.
• Q: Sourcegraph hasn’t always used a zone-based pay approach. Before April 4, 2024, Sourcegraph paid the same globally, regardless of location (location-independent pay). Why did the change happen?
  • A: Making this decision to move from location-independent pay to zone-based pay allows us to invest in more teammates, to support our growth and customer experience objectives, and reach our goals quicker. It also allows us to ensure we’re paying competitively and fairly across the globe.
• Q: I applied or was hired before April 4, 2024. How does this impact my compensation?
  • A: Your compensation will not be impacted by this change. You are “grandfathered” into zone 1, which is our existing pay model. In other words, nothing is changing for you.
• Q: What is the exact definition of a zone - is it the place someone lives? Where the company (for contractors) is registered? Where they work from most of the time?
  • A: The definition of a zone is where a teammate pays taxes, which is generally where someone lives 51%+ of the time.
• Q: Does a promotion trigger a zone-change?
  • A: No, promotions do not trigger a zone re-evaluation. Teammates will not have their zone re-evaluated at any point after they’ve been hired (unless they move to a higher cost of living zone) and salary is never decreased.
• Q: Would a relocation trigger a zone change/re-evaluation?
  • A: We honor the zone the teammate was hired into when they first join, and we never decrease salary. If teammates move to a location with a lower salary band, we will not reduce compensation. You can read more about relocation here.
• Q: Why did we choose to use zones vs. cost of labor data for each location where we hire?
  • A: It’s important to us that we continue to hire from anywhere in the world and pay competitively globally. Because we hire from almost anywhere in the world, we don’t have the internal resources or budget to access and maintain up-to-date market data for every single location around the globe. To simplify our program while also achieving a fair and competitive compensation strategy, we opted for a zone-based approach.
• Q: How do I provide feedback on a zone and/or pay band? (examples: the zone seems wrong; a location is missing from the list; there are too many/not enough zones in a given location etc.).
  • A: We used Radford to create our salary bands, and leveraged an external third-party compensation expert to determine our zones. If you see a zone or pay band that seems wrong and would prevent us from being competitive in hiring great people in that location or for that role, let us know in this form.
• Q: Is there a limit to how many times I can move between pay zones?
  • A: Yes, teammates can have their compensation adjusted once due to a location move within a 12-month period.
• Q: How do you decide which zone a location falls into?
  • A: We leveraged two external consultants to help create, and validate, each location and the corresponding zone. They used several market data sets to ensure our zones are as accurate as possible.
• Q: Do hiring managers take location into consideration when hiring?
  • A: Yes, each department has a headcount budget. When hiring, they may choose to hire in a lower-cost zone to ensure they’re staying within their budget. We are clear about which locations we’re willing to accept applicants from in the job description.
• Q: How do we ensure we’re hiring the best talent regardless of location, while also balancing hiring managers’ potential desire to make the most of the headcount budget by hiring in a lower-cost zone?
  • A: We will always default to hiring the best candidate for the job. There will be times when a hiring manager chooses to make an exception and hire a candidate outside of a desired zone. In these instances, they will work with finance to find cost savings elsewhere.
• Q: Are we worried about pay disparity given the switch to location-dependent pay?
  • A: We recognize that our introduction of location-dependent pay means that future teammates will be joining with a different starting compensation than some of their peers. The alternative is that we reduce pay for our current teammates who live in zones 2,3, and 4. This was a tough call, but we believe “grandfathering” in teammates who were hired before the change is the better choice for our business. We aim to ensure all future teammates are treated the same under the same new pay structure/program.
• Q: How will this impact my merit increases?
  • A: We do not take our new location-dependent pay program into consideration when considering merit increases. In other words, business as usual.
• Q: What do I do if I think a location falls in the wrong zone?
  • A: Email [peopleops@sourcegraph.com] and we will look into it for you!
• Q: Is our goal to offer the same career progression possibilities, regardless of zone?
  • A: We will not take zone into consideration when making promotion decisions.

Equity:

• Q: Does vary by zone?
  • A: Yes, grants follow the same zone-based approach as our compensation philosophy.
• Q: How are grants affected/not affected for things like quarterly awards?
  • A: Our zone-based philosophy only applies to new hire grants and refreshes. All other grants (such as impact awards) are the same regardless of location.