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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.

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60-Second Summary
  • 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

Effective Q2 2026. All figures USD/year. Updated quarterly against Mercer + Levels.fyi remote-region data.
LevelTitleP25 (USD)P50P75Bonus targetEquity grant %
L2Engineer I$11,800$13,400$15,0005%0.02–0.04%
L3Engineer II$15,500$18,400$21,2008%0.04–0.08%
L4Senior Engineer$26,500$31,200$38,40010%0.10–0.18%
L5Staff Engineer$42,000$48,000$55,00012%0.20–0.35%
L6Principal Engineer$58,000$66,000$74,00015%0.35–0.60%
M3Engineering Manager$36,000$42,500$48,00012%0.15–0.25%
M4Senior Eng Manager$48,000$54,000$62,00015%0.25–0.40%
M5Director of Engineering$66,000$72,000$82,00018%0.40–0.70%
Why staff ICs out-earn engineering managers at the same level

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.'

LevelNew-hire grant (% fully diluted)Year-3 refreshPromo grant
L30.04–0.08%0.02%0.02%
L40.10–0.18%0.04%0.04%
L50.20–0.35%0.08%0.08%
L60.35–0.60%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.

Written by Pawan Joshi.Sources cited inline.
First published 12 Feb 2025See site changelog →