Compensation Elements
Base salary
Also called: base pay, fixed pay, annual salary
The fixed, non-variable annual or hourly compensation an employee earns before bonus, equity, or benefits.
Base salary is the predictable, contractually-set pay an employee receives for performing their job. It's the largest single component of total compensation for most non-executive roles and the foundation that variable pay components are built on top of.
Base is typically expressed annually for salaried employees and hourly for non-exempt employees. It's also the basis for benefit calculations (401k contribution percentages, life insurance multiples, severance multiples).
In compensation surveys, "base salary" specifically excludes any bonus, commission, or equity. It's the cleanest comparison metric because it doesn't fluctuate with performance.