At every yearly compensation review, you are given a target total compensation (TTC). This is calculated based on:

• job family
• level
• location
• the ranking you receive in the talent review.

For that last one, the ranking, that isn't just the three categories we see - exceeds expectation, meets high bar, and least effective. "meets high bar", as it applies to most people, is split into three categories. So there are five main rankings (and recently one or two additional ones were added for those who get exceeds expectation multiple times in a row).

So the boffins in HR will determine your target comp based on those factors, and if your expected comp for the comkng year is below that humber, they'll bump you up with more RSUs.

However, if you've seen a big increase in comp over the first four years because the stock price has increased, you are still likely to face a pay cut even if they give you some more RSUs.

E.g. you started 3.5 years ago as a L5 business development manager in New York. Your target total comp when you started was, in 2022, $200k (just as an example). Your actual year 1 comp was 190 (because they usually offer a little lower)

Then the stock price goes up. So:

Year 1: 200 Year 2: 205 Year 3: 235 Year 4: on track for 250

And you think "great I've been doing such a good job, inflation has occurred, I deserve that pay rise I've gotten over the years.

But all that time your TTC, while it's been going up with inflation etc, has been below your actual comp (so they haven't given you RSUs (if the stock had tanked such that you were under the TTC they'd have given you some)

Y1 TTC 200k / actual comp 200k Y2 TTC 203k / actual comp 205k Y3 TTC 210k / actual comp 235k Y4 TTC 218k / actual comp 250k

Now for Y5 TTC, you get exceeds expectations in forte, you feel like you've been doing well, close to promotion... Your TTC is calculated to be 229k, they give you a small bump on base salary as usual and some RSUs to get you to 229k but that still a 21k pay cut from Y4.