2nd Level Manager - The employee’s direct manager’s manager. When an employee’s manager submits a Compensation Review, it then goes to that person’s manager (2nd Level Manager) for review and approval. This process continues through the approval hierarchy until the review reaches the Top Executive.
409A Valuation - An appraisal of the fair market value of a company's common stock. The term 409A refers to Section 409A of the Internal Revenue Code.
Adjustment - A customization applied to Kamsa’s default market-based pay band to reflect a company’s specific needs or actual scope of the role compared to market. Adjustments can include a premium or discount percentage, or a custom midpoint for Base Salary and/or Total Cash.
Annualized Base Salary - An employee’s Base Salary expressed as an annual amount. Kamsa annualizes hourly and part-time pay so it can be compared consistently with annual market compensation data. For hourly employees, Kamsa multiplies the hourly rate by the standard annual full-time hours. For part-time employees, salary is annualized using the equivalent full-time rate.
Approval Flow - The sequence of managers and approvers who review and approve Compensation Review recommendations. Reviews move through the hierarchy until they reach the appropriate final approver.
Base Salary Compa-Ratio - The calculation of the employee’s base salary divided by the Base Salary Market Midpoint as defined by the company’s compensation philosophy. A base salary compa-ratio of 100% means the employee’s base salary is aligned exactly at the midpoint of the range for their job.
Base Salary Market Midpoint - The gross base salary at the midpoint of the market range for a specific Kamsa Job Match and Market Data Cut, based on the company’s compensation philosophy. It includes mandatory recurring pay components required in a country and excludes supplementary contributions and one-time or discretionary payments.
Business Title - The standardized title your company uses in Kamsa for an employee’s role or an Open Job. The Business Title may differ from the employee’s specific internal title and from the Kamsa Job Match used to align the role with market compensation data.
Example: Senior Front End Engineer and Senior Back End Engineer might both use the Business Title Senior Software Engineer.
Company Profile - The area in Kamsa where company level settings and preferences are maintained, including the market percentiles used for the company’s compensation philosophy.
Company Ranges - The base salary and total cash ranges tailored to a company based on its compensation philosophy, applicable Market Data Cuts, Kamsa Job Matches, and any custom adjustments.
Compa-Ratio - A comparison of an employee’s compensation to the midpoint of the applicable pay range. Kamsa calculates both Base Salary Compa-Ratio and Total Cash Compa-Ratio.
A compa-ratio of 100% means an employee’s pay is exactly at the midpoint of the range for their job.
Kamsa considers 85% to 115% to be the competitive range; below 85% is below the range minimum, while employees with greater experience, performance, or specialized skills may fall toward the higher end of the range.
Compa-ratio, along with factors such as performance and experience, can help inform compensation increase decisions.
Compensation Philosophy - A company’s approach to positioning pay relative to the market. In Kamsa, the compensation philosophy is reflected in the Market Percentiles selected for different job categories.
Compensation Review - A structured process in Kamsa used to review and recommend compensation changes for employees, such as salary increases, total cash changes for sales reps, or equity grant decisions, and route those recommendations through the company’s approval flow.
Compensation Review Cycle - A defined Compensation Review period during which compensation recommendations are submitted, reviewed, and approved for a group of employees.
Department - A functional area within an organization used to group related Job Families and employees, such as Engineering, Finance, Marketing, or People.
Employee Data - The employee information maintained in Kamsa, including compensation, title, job level, location, manager, performance rating, and other data used for market comparisons, analysis, and Compensation Reviews.
Employment Type - Indicates whether an employee is a full-time employee, part-time employee, temporary employee, or contractor.
Equity - An ownership interest in a company, or the right to acquire shares through awards such as stock options or restricted stock units (RSUs). Equity compensation gives employees partial ownership in exchange for their work, helping align employee interests with company goals and long-term value creation.
Equity Grant Types:
New Hire Grants - equity grants given to employees at the time of hiring.
Refresh Grants - equity grants given to employees typically as part of a retention equity program and can be tied to performance and/or tenure.
Promotion Grants - equity grants given to employees for a promotion.
Fully Diluted Shares - The total number of outstanding shares there would be if all convertible securities (e.g., convertible notes) were converted to common stock.
Gender - Optional employee demographic information (e.g., female, male, non-binary) used for gender pay analysis.
Geographic Differential - A percentage adjustment of a common baseline (e.g., US national market data) used to reflect differences in pay across locations. Geographic differentials are commonly used for distributed U.S. workforces, while local market data is generally recommended for employees outside the U.S. They can also be used when local market data is limited and reflect differences in cost of labor and cost of living between locations.
Individual Contributor (IC) & Management Levels -
Individual Contributors (IC): IC1-IC6 - Employees who do not have direct reports or managerial responsibilities.
Management: M1-M6, E1-E3 - Employees who lead, manage, and have one or more direct reports.
Kamsa Job Levels reflect factors such as experience, knowledge, scope, impact, work latitude, and responsibility.
Internal Average - The average compensation of employees at your company who share the same Kamsa Job Match and applicable Market Data Cut. It provides an internal comparison alongside Kamsa market data.
Job Code - A unique code associated with each job title and its respective job level.
Kamsa Job Family - A group of jobs within a department that require similar knowledge, skills, and abilities.
Kamsa Job Level - Denotes the level of experience, knowledge, work latitude, impact, scope, and responsibilities associated with the job and is used to match to the market job and respective market compensation data more accurately.
Kamsa Job Match - Identifies the Job Family and Job Level that best align with an employee’s role so the employee’s compensation can be accurately compared with market data.
Manager - Someone who manages the development, work activities, and performance of an employee.
Market Compensation - The area of Kamsa used to view your Company Ranges, a listing of any custom Adjustments, Open Jobs, and Compare your customized pay ranges to Kamsa’s default market compensation data.
Market Data Cut - The specific market dataset used to compare compensation based on factors such as employee location or, where applicable, company revenue. For example, the San Francisco Bay Area Market Data Cut represents a specific geographic cut of U.S. market compensation data.
Market Midpoint - The central value of a market compensation range, based on the company’s selected market percentile.
Market Percentile - Indicates how compensation for a job compares with the broader market. For example, at the 50th percentile, half of employees in the market earn less and half earn more. Companies use Market Percentiles to define how they want to position pay relative to the market.
Open Job - An open position added to Kamsa for Recruiters, Finance teams, or other users to reference. If the role does not currently have employees assigned to it, adding it as an Open Job will also make the role appear within the Company Ranges tab.
Pay Basis - Indicates whether an employee is paid on a Salaried or Hourly basis.
Per Share Value - The estimated price of a single share of company stock.
Performance Rating - The rating used in a performance management program to indicate an employee's level of performance or achievement during a set period of time. Ratings can be updated in Employee Data or during a Compensation Review.
Preferred Shares - The preferred stock has rights, preferences, and privileges that common stock does not have. For example, preferred stock owners will be paid before the common stock owners when a liquidity event occurs, such as if the company is sold or goes public. Typically, investors get preferred stock, and founders and employees get common stock (or stock options).
Restricted Stock Units (RSUs) - RSUs are a form of stock-based compensation offered by a company to employees that vest at some point in the future. RSUs are more common at later-stage, more mature companies.
Revenue Cut - A Market Data Cut that segments market compensation data by a specific revenue range. Revenue Cuts should be used for benchmarking U.S.-based executive compensation (e.g., VP and above) for your company’s applicable target revenue for the current or upcoming year.
Stock Options - An incentive offered by a company to employees that gives them the right to purchase a specific number of common shares at a fixed price, known as the exercise price, after the options vest and before they expire. It allows companies to share ownership with employees, reward them for performance, and attract and retain top talent.
Target Bonus % - The employee’s target bonus is represented as a percentage of the employee’s base salary. It represents the bonus opportunity if the employee achieves 100% of their goals, not the actual bonus earned or paid.
Target Bonus Amount - The amount of bonus an employee is eligible to receive if they achieve 100% of their goals. It represents the target bonus opportunity, not the actual bonus earned or paid.
Target Commission % - The employee’s target commission (variable or incentive) is represented as a percentage of an employee’s Base Salary. It represents the commission opportunity if the employee achieves 100% of their quota, not the actual commission earned or the commission rate applied to sales.
Target Commission Amount - The amount of commission or incentive compensation an employee is eligible to receive for achieving 100% of their quota. Also called target incentive or on-target incentive (OTI). It does not represent commission actually earned or paid.
Target Variable Pay - The bonus or commission compensation opportunity an employee is eligible to earn for achieving 100% of their applicable goals or quota. It represents the target opportunity, not the amount actually earned or paid.
Technical vs. Non-Technical -
Technical: Roles that typically require specialized skill sets and may be more resource constrained in the market, making qualified talent more difficult to find. Common Technical job families include Software Engineering, Product Management, and Product Design.
Non-Technical: Roles that are generally less resource constrained in the market and may have a broader available talent pool.
To see whether a Kamsa Job Family is categorized as Technical or Non-Technical, click the Job Family name in Market Compensation to view the assigned Job Group.
Top Executive - The Top Executive is the highest-level manager in a department and usually reports to the CEO. Top Executives have final approval of Compensation Reviews for their departments.
Total Cash - An employee’s Base Salary plus target variable pay, such as a target bonus or commission. It does not include benefits, one-time payments, or non-mandatory allowances.
Example: If an Account Executive has a base salary of $100,000 and a target commission of $100,000, their Total Cash is $200,000.
Total Cash Compa-Ratio - The employee’s Total Cash divided by the applicable Total Cash Market Midpoint. A Total Cash Compa-Ratio of 100% means the employee’s Total Cash is exactly at the midpoint of the market range for their job.
Total Cash Market Midpoint - The midpoint of the market range for Total Cash, based on the company’s compensation philosophy. It includes Base Salary plus target variable pay, such as a target bonus or commission.
Total Outstanding Shares - The total number of company shares that have been issued and are currently held by shareholders. It excludes shares that could be issued through the conversion or exercise of convertible securities, stock options, or other equity awards. Those potential shares are included in the fully diluted share count.
Unvested Shares - Shares that, according to the vesting schedule, the employee has not yet earned full ownership of.
Vesting Schedule - The timeline and conditions under which an employee earns ownership of granted shares.
Work Location - The location from which an employee works. Work Location impacts the market data cut used for the employee’s market comparison.