When she just started working at Google, Marisa Mayer placed a bet that she could train smart new grads to become Product Managers. And so, the APM, or “Associate Product Manager”, program was born.
How much do Product Managers (including Associate Product Managers) get paid at Google?
Google Product Manager base salary and total compensation
Using data from the Salary Project, the median base salary for a Google Product Manager appears to be $155,000. The median total compensation is $298,000, which includes annual bonus and stock RSU grants.
Below are the approximate base salary and total compensation ranges for Google Product Managers (including the APM, or Associate Product Manager level) broken out by level:
APM1: $120,000 – $128,000
L4: $130,000 – $152,000
L5: $155,000 – $200,000
L6: $200,000 – $204,000
L7: $212,000 – $212,000 (only one data point)
APM1: $150,000 – $171,000
L4: $190,000 – $286,000
L5: $298,000 – $370,000
L6: $365,000 – $390,000
L7: $396,000 – $396,000 (only one data point)
Interestingly, the distribution of years of experience for Google Product Managers appears to be bimodal. In other words, the distribution has “two peaks”. There’s one around the 4-6 years of experience level, and another at the 10-12 years of experience level.
Associate Product Manager compensation
If you’re thinking about Product Management as a career, you may be wondering how much entry level Product Managers can get paid.
Again, using the Salary Project’s data and filtering just for Associate Product Managers (which you can do on the Salary Project easily), we see that the base salary is about $125,000, with total compensation being $163,000.
Let’s dig into total compensation for Associate Product Managers. The annual bonus appears to be about $20,000 and stock RSU grants seem to have an annualized value of about $23,000.
A total compensation of $163,000 straight out of college (or recently graduated) is not bad at all for a role that’s not really “technical” (e.g. not Software Engineering). That’s not to say that Product Management doesn’t require some technical skills: Product Managers work very closely with Engineers to build a product, and often need to do their own analysis. Product Managers do need to have an understanding of how software works and how to analyze data.
Today, many companies hire Product Managers. For those who possess a versatile set of technical, analytical, and business skills, Product Management has become a new hot job where they can be the “CEO” for their own product, within a company.
This analysis was powered by anonymous salary data contributions to the Salary Project, from people like you. Want to see more interesting analyses on how companies pay their employees? Contribute your data anonymously to the Salary Project, and reach out with any analysis ideas!
Two Sigma, a quantitative hedge fund based in New York, is colloquially known as “the Google of Finance” because of its startup-like culture and offices. With the Finance and Technology industries increasingly competing for the same Software Engineering, how does the pay compare?
Google Software Engineer salaries and total compensation
Let’s look at Software Engineers at Google first. While their median base salary is $142,000 and total compensation is $243,000, pay varies a lot based on career level and years of experience.
Breaking out pay by years of experience / level
For example, using the years of experience filter on the Salary Project’s page for Google Software Engineers, if you’re an entry level Software Engineer at Google with 0-2 years of experience (most are leveled at L3 in this case), the median salary is about $127,000 and median total compensation is about $189,000.
We also see that if you have 5 or more years of experience in the industry (usually levels L4, L5, L6, or higher), the median salary jumps up to $171,000, total compensation $310,000 at Google, for Software Engineers.
Below is the full picture of what the base salary ranges look like, by level (using the self-reported data that the Salary Project has).
Breaking out additional compensation
When it comes to additional compensation like annual bonuses and stock RSU grants, the amount that Google Software Engineers earn also depends a lot on level and years of experience.
For entry-level Software Engineers with 0-2 years of experience, the median annual bonus is $19,000 and median stock RSU grant value (annualized) is $35,000.
For experienced Software Engineers with 5 or more years of experience, the median annual bonus jumps up to $32,000 and median stock RSU grant value (annualized) triples, to $105,000.
Two Sigma Software Engineer salaries and total compensation
How does the pay of Software Engineers at Two Sigma differ?
There are only a handful of submissions on the Salary Project so far for Software Engineers at Two Sigma, but we can still see trends in the data. The median base salary is $170,000 and total compensation is $275,000, about 20% and 13% higher than the two median numbers for Google Software Engineers, respectively. Pay of course varies depending on career level and years of experience so let’s look at that next!
Breaking out pay by years of experience / level
For Software Engineers at Two Sigma with 0-2 years of experience, it looks like base salary is about $145,000-$150,00, and total compensation is about $200,000, which are about 15% and 6% higher, respectively, than those two numbers for a Software Engineer at Google with a similar experience level.
Software Engineers at Two Sigma with 5 or more years of experience have a median base salary of $210,000, total compensation of $407,000. These numbers are roughly 20% and 30% higher than the corresponding median numbers for Google Software Engineers, respectively.
So, for both entry level and experienced Software Engineers, Two Sigma seems to pay a decent amount more than Google.
Breaking out additional compensation
When we break out the additional compensation for Two Sigma Engineers, we see something interesting.
All of the reported additional compensation is an annual bonus. All the Two Sigma submissions on the Salary Project put $0 as the value of the stock RSU or option grants. Two Sigma is a private company, so any stock that employees do get is hard to value, or the $0 values could mean that employees don’t get any stock at Two Sigma.
For entry level (0-2 years of experience) Software Engineers at Two Sigma, the annual bonus is about $40,000 – $60,000.
Experienced (5+ years of experience) Software Engineers at Two Sigma can earn an annual bonus ranging from $100,000 to a whopping $240,000.
What’s the verdict?
Does Finance pay better than Tech? Maybe: we only compared one top hedge fund to one top tech company. The real answer, of course, depends on a lot of other factors too, like the location, the specific role, etc. Also, with investment and trading firms like Two Sigma, annual bonuses are often tied to the performance of the company’s trades and investments: so in down years, employees likely get a smaller bonus than in up years. Another thing to consider is that Google gives stock grants, which grow in value over time. Right now though, Two Sigma seems to generally pay a little better than Google does for Software Engineers.
You can do a similar comparison looking at the Salary Project’s data for Facebook Software Engineers. Or take a look at this analysis on the salaries across Facebook, Google, and Microsoft. But it makes sense that more quantitative and programmatic finance and investment firms, like Two Sigma, are competing for the same Software Engineers that consider working for top tech companies, and vice versa.
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It looks like in general, Data Scientists have a higher median base salary than Software Engineers. Much of this is likely due to the fact that companies like to look for Data Scientists with experience (and sometimes advanced degrees), whereas there are a lot more entry or junior level Software Engineer positions.
The trend reverse a little when looking at total compensation, which is base salary plus annual bonus plus annual stock RSU grant value. It looks like Software Engineers at Google and Facebook have a higher total compensation than Data Scientists at the same company. At Microsoft, Data Scientists still have a higher total compensation than Software Engineers.
Interestingly, the total compensation for Facebook Software Engineers looks much higher than the total compensation for Facebook Data Scientists.
Comparing the additional compensation data for Facebook Software Engineers vs. Facebook Data Scientists, it looks like while the distribution of annual bonuses is roughly similar, with a median of about $20,000 a year.
The distribution of annual Stock RSU grant value is much wider for Facebook Software Engineers than it is for Data Scientists at Facebook. In other words, Facebook Software Engineers tend to get larger stock RSU grants than Data Scientists, for whatever reason. Concretely, the data on the Salary Project shows that the median (annual) stock RSU grant value for Facebook Software Engineers is $100,000 a year, while for Facebook Data Scientists it is $45,000 a year.
Also, Facebook pays the most out of the three in both base salary and total compensation. Facebook is known to offer the highest pay in the market for its Software Engineers and Data Scientists.
Note: this is not an ad to work for Facebook. Besides, money’s not the only thing that matters in life 🙂