If I make lateral jump for a 40% raise I will most like be making more than my peers at the same level at the new company. Does that mean that my future raises at this new company will be lower so that eventually I’m leveled out with my peers?

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Yes but not for a year or two. That’s why jumping around can be good for comp in the medium term because you’re going from one high part of a salary band to another.

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Probably

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That is correct

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Probably but a 1-2% raise on a 40% higher salary is more total comp than a 10% raise on 40% lower salary. The math says it makes sense.

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Yes, and then when you’re ready for the next big jump you leave for another company and start your cycle anew.

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For a 40% raise it will take a decade for things to catch up, assuming you all are performing at the same level.

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