Real comp bands: a Series A in Kathmandu, line by line
A complete cash + equity band table for a 42-person Series A engineering org in Kathmandu — what we pay, why, and what we'd change knowing what we know now.
- P50 base for a senior engineer (5–8 yr) in Kathmandu Q2 2026: USD 31,200. P75: 38,400. Equity grant: 0.10–0.18% over 4 years with 1-year cliff.
- Band width is intentionally narrow (P25 to P75 = 23% spread, vs. industry-typical 40%) because lateral mobility is high — wider bands incentivize external job-hopping for the inside-band raise.
- The hardest call: senior managers earn less than senior ICs at the same level. We protected the IC track because we'd otherwise lose every staff engineer to a non-management offer.
Most comp articles end where the interesting part begins — at the actual numbers. This one starts there. Below is the live band table for a 42-person Series A engineering org headquartered in Kathmandu, with USD-denominated bands set against Mercer South Asia and Levels.fyi remote-region benchmarks.
The philosophy line
- Pay target: P60 of Kathmandu-resident market for the role, P40 of fully-remote global market.
- Bands are USD-denominated, NPR-paid at month-start FX rate +/- 1.5% smoothing band.
- No location adjustment between Kathmandu, Pokhara, or Biratnagar. We do not have enough non-Kathmandu staff to justify a separate band.
- Promotion = level change. Merit increases inside band capped at P75 unless approved by CEO.
The bands
| Level | Title | P25 (USD) | P50 | P75 | Bonus target | Equity grant % |
|---|---|---|---|---|---|---|
| L2 | Engineer I | $11,800 | $13,400 | $15,000 | 5% | 0.02–0.04% |
| L3 | Engineer II | $15,500 | $18,400 | $21,200 | 8% | 0.04–0.08% |
| L4 | Senior Engineer | $26,500 | $31,200 | $38,400 | 10% | 0.10–0.18% |
| L5 | Staff Engineer | $42,000 | $48,000 | $55,000 | 12% | 0.20–0.35% |
| L6 | Principal Engineer | $58,000 | $66,000 | $74,000 | 15% | 0.35–0.60% |
| M3 | Engineering Manager | $36,000 | $42,500 | $48,000 | 12% | 0.15–0.25% |
| M4 | Senior Eng Manager | $48,000 | $54,000 | $62,000 | 15% | 0.25–0.40% |
| M5 | Director of Engineering | $66,000 | $72,000 | $82,000 | 18% | 0.40–0.70% |
Because the alternative is losing every L5 to a non-management remote role paying USD 70k+. The 'manager premium' is a recruitment tax we no longer pay. M-track is for people who want to manage, not for people who want a raise.
Equity grants
Standard vesting: 4 years, 1-year cliff, monthly thereafter. Strike price reset annually based on most recent 409A-equivalent valuation (currently USD 0.94/share, post-Series A). Refreshes start at year 3 to address the 'cliff retention dip.'
| Level | New-hire grant (% fully diluted) | Year-3 refresh | Promo grant |
|---|---|---|---|
| L3 | 0.04–0.08% | 0.02% | 0.02% |
| L4 | 0.10–0.18% | 0.04% | 0.04% |
| L5 | 0.20–0.35% | 0.08% | 0.08% |
| L6 | 0.35–0.60% | 0.15% | 0.15% |
What we got wrong
- Band width too narrow at L2/L3 — high-potential juniors hit ceiling at 22 months and leave for a 25% external raise. Widening to 32% spread in 2026.
- Bonus targets are theatrical — paid 100% three years running. We're folding bonus into base in the next cycle to stop pretending it's variable.
- No published bands externally. We will publish ranges in JDs starting Q3 2026 — the cost of doing so (a few internal questions) is less than the recruiting drag of not doing so.
- Equity acceptance comes too late in the funnel. We now run a 30-minute equity-literacy session before the offer, and offer-acceptance rate jumped from 64% to 81%.
Frequently asked questions
Why USD-denominated when you pay in NPR?
Because the alternative is repricing every 9 months as the rupee moves, which makes long-term planning impossible for the employee. USD-denominated with monthly FX smoothing removes the question.
Do you adjust for cost-of-living for remote-Nepal staff?
No. We're too small for the complexity. We may revisit at 100 people.
How do you handle counter-offers?
We don't. If a market offer reveals the band is wrong, we update the band. If the offer is above-band for the role, we let them go.
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