Salary Negotiation for Data Engineers in 2025: Offers, Equity, and Counter-Offers

Quick takeaways:

• Data engineer salaries are expected to boom in 2025. Data engineer salaries in the US average around $125K–$130K a year, and total compensation at top tech firms easily exceeds $200K when you factor in bonuses and equity.
• Know your total compensation. A job offer for a data engineer typically includes a base salary, bonuses, and often equity (such as stock options or RSUs) as part of the compensation package. All of these are negotiable, so look at the full salary range, not just the base pay.
• Stock options or RSUs might boost your pay significantly if the company performs well. Understand vesting schedules and the company’s growth prospects when valuing equity, and don’t be afraid to negotiate for a better equity grant or signing bonus in your job offer.
• Data engineers who negotiate their salary offers often secure 15–20% higher pay than the initial offer on average. Leverage your high-demand skill set (think big data, cloud, machine learning) and come prepared with market research to confidently ask for more.
• If your current employer makes a counteroffer to keep you, think twice. Counter-offers rarely fix underlying issues, and many who accept them end up leaving within a year anyway. Be polite and professional, but prioritize the role that best aligns with your career growth and salary expectations.
• Don’t focus exclusively on salary or rush to say “yes” immediately. Failing to do salary research, ignoring benefits, or revealing your minimum too early are mistakes that can leave money on the table. We’ll cover these pitfalls and how to avoid them so you negotiate like a pro.

First, check out our students’ actual pay increases by reading the inspiring testimonies of career changers who increased their income after upskilling.

In around five years, the income trajectory of one data engineer increased from about $60,000 to about $500,000. Negotiations and strategic employment changes (such as taking advantage of new offers and highly sought-after abilities) resulted in pay increases from $130,000 to $200K to $350,000 and ultimately to around half a million dollars. This demonstrates what can be achieved with the appropriate timing, abilities, and negotiating approach.

Data engineers are earning some of the top salaries in the computer industry as we approach 2025. Real data supports it, so it’s not simply hype, especially when discussing salary potential. Just the median annual compensation for a data engineer in the United States is approximately $130,000. Have you worked for a well-known company for a few years, or do you possess specific skills in machine learning? Offers over $200K are not unusual in the field of data engineering; at the most competitive companies, they can even approach $300K+ when bonuses and stock are taken into account. To put it briefly, a job in data engineering can be quite profitable. However, you must be able to bargain from the first offer through equity talks and counteroffers, using salary negotiation tips, if you want to take full advantage of those compensation trends.

This tutorial will walk you through the process of negotiating a wage, particularly for data science positions. Examining employment offers, comprehending and negotiating equity, responding to counteroffers, and learning tried-and-true negotiation strategies while avoiding typical traps are all things you’ll learn. 

The Job Offer: Understanding Data Engineering Offers in 2025

A data engineer’s job offer usually isn’t a single number; it’s a compensation package with multiple components. Understanding each piece will give you more leverage when you master salary negotiation as your engineer salary negotiation. 

• Base Salary.
  This is the annual fixed amount (before stock or bonuses) that contributes to your overall salary information. Data engineers’ base pay varies by region and degree of expertise. Mid-level positions can pay between the low and mid-six figures, senior engineers frequently earn well into the six figures, and entry-level data engineer positions (those with 0–2 years of experience) may pay between the high-80Ks and low-100Ks. For instance, an offer for a mid-level job can include that the base pay is $130,000. It’s crucial to raise your basic income as much as you can afford because it’s only one component of your overall compensation, but it also affects your chances of receiving raises and bonuses.
• Annual Bonus.
  Numerous businesses provide an annual bonus, which is frequently calculated as a percentage of your base pay. At larger companies, a bonus that is based on individual or company success may often be between 10% and 15% of base salary. A 7% yearly bonus on a $120,000 income, for example, would come to roughly $8,400. Find out if the position offers bonuses and how they are calculated because they can eventually add a substantial amount to your average pay, contributing to your overall salary potential. You can inquire about the availability of a sign-on bonus (more on that soon) or whether the bonus objective is negotiable while negotiating your specific salary.
• Equity (Stock Options or RSUs).
  In 2025, equity is a huge part of tech compensation. Companies, especially startups and big tech firms, may offer stock options or Restricted Stock Units (RSUs) can be a valuable part of your compensation, especially for a role like a Microsoft Azure data engineer.. This could range from a small grant of startup stock options (which might be very valuable if the company grows) to large RSU packages at public companies (e.g. thousands of dollars in stock per year at a FAANG company). For example, Disney reportedly offered a data specialist $120K base plus a 7% bonus and stock options as part of the package. Always ask about the total compensation package when discussing offers. How many shares, what’s the current stock price or valuation, and what is the vesting schedule for the data science position? Understanding equity’s value is key – $50K in RSUs at a stable public company is very different from stock options in a brand-new startup. We’ll dive deeper into negotiating equity in the next section.
• Sign-On Bonus.
  Some offers include a one-time signing incentive, particularly for experienced hires. This could be to compensate for unvested stock you’re leaving at your previous job or to persuade you to join. At large companies, skilled data engineers may receive sign-on bonuses ranging from a few thousand dollars to tens of thousands, significantly contributing to their total compensation package and six-figure salary. Asking whether they can offer a sign-on bonus to sweeten the deal is worthwhile if your offer doesn’t contain one, especially if you’re leaving your current employer for remote work opportunities.
• Other Benefits: consider how remote data work options can enhance your overall compensation package. Other benefits are included in the offer’s overall value, even though they are not “salary.” Consider health insurance, paid time off, 401K matches, tuition reimbursement, relocation aid, and so on. These are crucial for your general pleasure, even though they might not be as flexible as pay and equity are, because organizations frequently have set benefit packages. But occasionally, you might provide flexible work schedules or additional vacation days in your counteroffer. Remember that professional development stipends and commuter advantages add up, contributing to your overall salary expectations.

According to experience level, typical U.S. data engineer salaries vary (2025). As seen, mid-level positions often range from $110K to $150K or more, while entry-level engineers may begin at around $85K. Senior data engineers who have worked for more than five years can earn well over $200K in total salary. The location (Silicon Valley vs. mid-cost towns), industry, and demand for the position at the time of your offer will all affect your precise wage range as an engineer in San Francisco.

Spend some time dissecting each pay component when you receive an offer as an engineer in San Francisco. To determine the total annual remuneration, add the basic income, bonus (if desired), and the annual value of any equity. For instance, your total yearly compensation would be roughly $152K if you had a base salary of $120,000, a 10% target bonus of $12,000, and $20K in RSUs annually, which is typical for data engineering roles. This viewpoint will make it easier for you to compare offers side by side, particularly if you’re thinking about several options.

Consider how well the offer aligns with your priorities. A larger base or sign-on bonus may be preferable to a sizable equity grant (which may not be definite) if you value cash on hand. In the long run, asking for more stock options could be very beneficial if you think the company will grow (for example, if it’s a high-flying AI startup). The greatest offers frequently balance equity, bonuses, and salaries to meet your objectives. After discussing the structure of an offer, let’s delve deeper into equity, that enigmatic creature.

Equity and Stock Options: How to Value and Negotiate Your Slice

The key to tech compensation is frequently equity. If the business succeeds, it might transform a “decent” salary into a paycheck that changes your life. How do you negotiate it, though, and what precisely are you being offered? Let’s clarify what equity in data engineering offers:

What kind of equity does it take? Equity in data engineering is usually in the form of restricted stock units (RSUs), which are frequent in larger, publicly traded, or late-stage organizations, or stock options, which are common in startups.

• You can purchase business shares via stock options at a predetermined price, known as the “strike price.” Over time, usually four years, they vest. Exercising options may entail purchasing low and possibly selling high if the company’s value increases significantly over your strike price, especially relevant in cloud data projects. For instance, you may be able to purchase 10,000 shares for a price of $1 each, which could be a great opportunity for a cloud data engineer. When those options are exercised and sold, you will make a big profit ($19 profit per share) if the company eventually goes public for $20 per share, enhancing your overall earning potential and contributing to a six-figure salary. The catch? The options may become worthless if the company performs poorly (if the stock price remains below your strike price). Additionally, exercising options necessitates extra preparation because they can result in expenses and taxes.
• RSUs are an assurance that you will receive actual shares (or their cash equivalent) upon vesting; no purchase is required. They are more straightforward: each RSU typically corresponds to one share of stock, which can contribute to your overall earning potential. Although you usually receive them over time (for example, 250 shares annually for four years), if you receive 1,000 RSUs and the stock is $100 each, that comes to $100,000 for an engineer in San Francisco. While options may become “underwater,” RSUs retain value even if the stock price declines (as long as it remains above $0), making them an important aspect of the total compensation package. Since RSUs are used by the majority of large corporations (think Google, Meta, etc.), they play a significant role in achieving a six-figure salary.), you just receive stock (less any taxes withheld) and don’t have to pay to exercise, which can significantly affect your six-figure salary.

How to Value Equity: This can be tricky, but here are some guidelines:

• If it’s a public company (or soon to go IPO), check the current stock price. An offer might say “$50K of RSUs per year,”  which you can translate to the number of shares (e.g., if stock is $250, that’s 200 shares/year). You can be fairly confident in the current value (though stock prices fluctuate). For private companies or startups, ask for the most recent valuation and the number of shares outstanding, considering the demand for data engineers in the current market. For instance, if you’re offered 0.05% of the company in stock options, what is 0.05% worth based on the latest valuation? Even if it’s paper value, it helps to know if that’s, say, $20K vs. $200K in theoretical value when evaluating your salary potential. Also consider the growth potential – a smaller startup might justify a lower salary but offer a larger equity % that could be huge if the company takes off (think early employees at Netflix or Snowflake).
• Attend to the vesting schedule. The typical arrangement is four years with a one-year “cliff” (nothing for the first twelve months if you quit, maybe 25% vests, and then monthly or quarterly after that). Some businesses may have a component that vests only at an IPO or purchase (common with stock options and big data firms), while others may offer faster vesting or no cliff. Recognize when you will receive the stock, especially in relation to your data engineering roles. In some situations, such as when you are fired without cause, you may be able to request expedited vesting during negotiations for your software engineer position, especially if you are a Microsoft Azure Data Engineer Associate. This is known as a “trigger.”
• Future grants and refreshers: How the business manages upcoming equity grants or refreshes is one topic to talk about, particularly for offerings that contain a lot of equity. High achievers frequently receive yearly stock refreshers from large corporations. “Will there be an opportunity to gain additional equity in the future (e.g., after the next financing round or a year of performance), and how does that relate to the demand for data engineers?” is a question you may have if you’re joining a business. This shows that you have a long-term perspective on your career and salary potential. It’s helpful to know, even though it’s not directly a topic of contention for the initial offer.

Equity valuation is a combination of art and science. Don’t let it scare you. Equity has helped many people accumulate substantial wealth, but it’s never guaranteed, so balance it with the things that are certain, like base pay and any bonuses that are assured. When a business is very confident in its expansion, it may be more inclined to give additional equity than to reduce basic pay because everyone benefits when the business succeeds.

Get a second opinion if you’re unsure about the equity’s value. This might be from a mentor or an online community, but don’t publicly share any private information. Feeling happy about the entire offer is crucial. The next problem is to evaluate if they will improve the transaction after you’ve examined the base and equity. Negotiation and perhaps balancing multiple offers are necessary in this situation.

Counter-Offers and Competing Offers

Whether your present employer is attempting to convince you to stay or is utilizing a rival job offer to obtain a better deal, managing counter-offers is one of the most difficult aspects of pay negotiation. Big-picture thinking and subtlety are necessary at this point. Let’s unpack the intricacies of the salary landscape, consider the various components of your compensation. Both situations for engineers in San Francisco:

1. Having multiple job offers at the same time can be both thrilling and frustrating, especially for a cloud data engineer navigating the effective salary negotiation process. To start with, congratulations! That’s a great problem to have! Numerous firms are vying for the services of data engineers, particularly those with highly sought-after specialized capabilities (such as proficiency in a particular cloud platform or streaming pipeline). 

• Be honest but strategic.
  It’s okay to let Company A know that you have another offer, but do so carefully, especially when applying negotiation techniques to maximize your offer.. For example, understanding the market trends can help you anticipate data engineer salaries in 2025. “I’m very interested in this role. I do have another offer, and their package is X; I am considering how it compares to the salary as a data engineer in the current market. If you could match (or exceed) in salary or benefits, I’d be ready to sign with you because I genuinely prefer your opportunity in cloud data. This frames the counter not just as “pay me more,” but as “help me justify choosing you.” Be prepared to provide some details of the other offer if asked (you don’t necessarily need to show the offer letter, but you can share the base salary or total comp figure). Never lie about an offer – companies sometimes know the market and could sniff out an exaggeration, which will kill your credibility.
• Leverage the strengths of each offer.
  Maybe one company has a higher base salary, while another has more equity or a better job title. You can sometimes ask your top-choice company to improve where the other offer is stronger, especially in complex data roles. For instance, “Company B is offering a $20K higher base salary. If you could come closer to that range in the salary guide for 2025, it’d make my decision easy.” They might not match dollar-for-dollar, but you’d be surprised – if they really want you, they might improve the offer. Even a partial improvement in your compensation package is a win, particularly if it aligns with the data engineer salary guide. Just be respectful and emphasize you’re not just shopping for the highest bidder; reiterate your excitement for the role at the company you’re negotiating with.
• Timing matters.
  Offers often have explode dates (e.g., “We’d like an answer by Friday”), especially for engineers in San Francisco. If you need time to hear back from another company, you can professionally ask for a short extension: “Thank you for the offer! I am very interested. This is a big decision; would it be possible to have until early next week to finalize?” Many employers understand you need time, especially at the mid-career level. Use that time to politely nudge the other company if needed (without saying “I have a deadline, answer now!” – rather, “I’m very excited about your role in the data roles; I expect to decide in the coming days. Is there any update on my candidacy?”).
• Don’t divulge every detail.
  You don’t have to tell Company A who the other offer is from if you’re not comfortable (though if it’s a competitor or big name, mentioning it might actually add pressure for them to not lose you in the competitive salary landscape). Keep it factual and focus on the compensation gap or particular terms you care about, such as stock options or remote data opportunities. Also, avoid creating a bidding war mentality in the tech industry – that can sour the tone. Ideally, you have one preferred role, and you use the other offer(s) as legitimate leverage to get a fair package there.

2. Handling a Counter-Offer from Your Current Employer: So you’ve gone through interviews, gotten a shiny new offer, and when you tender your resignation, your current boss says, “Wait! What if we increase your salary or give you a promotion to make you stay?” This is the classic counteroffer scenario that many engineers in San Francisco face. It’s flattering, maybe tempting – who wouldn’t like feeling wanted, especially as an engineer in San Francisco? But approach with caution: negotiating for higher salaries can sometimes lead to unexpected outcomes.

• Ask yourself why you were job hunting in the context of advancing your career in data science or cloud data. Was it only about money for engineers in San Francisco? Often, it’s also about growth opportunities, job satisfaction, company culture, work-life balance, etc. If those issues exist, a counteroffer is usually a band-aid that does not address the underlying expectations. As recruiting experts often note, engineers in San Francisco have unique advantages in negotiations. Many employees who accept counter-offers end up leaving within a year anyway. Why? Because a salary bump doesn’t magically fix a bad manager, or burnout, or lack of career progression. The issues that pushed you to look elsewhere will likely resurface. Before even considering a counteroffer, list the reasons you wanted to leave and see if any would truly change by staying.
• Consider trust and prospects. It’s an unfortunate truth that if you only get a raise because you threatened to leave, some employers will question your loyalty going forward. They might give you that raise now, but you could be first on the list in a downturn or passed up for sensitive projects because they fear you might still jump ship. Also, think about why it took you having one foot out the door to get a better salary could be a sign of how they value (or undervalue) you. On the other hand, some companies genuinely hate to lose talent and will actively work to address your concerns, including offering higher salaries based on the demand for data.
• Money comparisons. If your current place matches or even beats the new offer money, it can be hard to turn down – if money were the only factor, you might prioritize the highest offered for a cloud data engineer role. But be careful. One trick: compare the offers on more than money. Does the new job use newer technologies (good for your skill set growth)? Does it offer a better title or bigger responsibility? Sometimes, a lateral counteroffer with more cash isn’t as valuable as a new role that advances your career. However, if your current job was great and you were mostly leaving for a pay raise, a counteroffer could make sense in rare cases. Just be aware of the statistic often floated (even if anecdotal) that a high percentage of people who accept counters leave shortly after. The trust equation changes once you show you are ready to leave.
• How to respond: If you do get a counteroffer, remain professional. You can thank them and tell them you’ll consider it. You do not have to decide on the spot. In fact, discussing a counter with the new company can be part of a negotiation strategy for engineers in San Francisco, too – but be very careful here regarding the information. Going to your new offer and saying, “My old job is offering X as an engineer in San Francisco, can you beat it?” can sometimes work, but it can also signal to the new employer that you’re not fully committed or might be indecisive. Use this only if, truthfully, you would stay at your current job unless the new offer improves. If the new company really wants you, they might up their offer a bit to meet the industry trends.

In general, counter-offers from your current employer have more downside than upside. Your resignation can create an awkward dynamic, and unless the counteroffer addresses all your reasons for wanting to leave, it might just be delaying an inevitable departure. There are exceptions, of course, but they’re rare. Most career coaches will advise that you politely decline counter-offers and move forward with your new opportunity. Remember, you sought a new job for a reason – and the fact you landed one means you have something the new employer values highly, such as skills in real-time data processing. That gives you confidence to stick to your decision.

Next up, we’ll get into general  negotiating tips for engineers in San Francisco that apply across the board – whether it’s your first data engineering job or you’re a seasoned pro, and whether you have other offers or not. Being prepared can increase your salary  significantly, sometimes with just a single conversation.

Final Thoughts

Negotiation can indeed feel daunting, especially in a fast-moving field like data engineering, where salaries vary and roles evolve with new technologies. But with the right preparation and mindset, it’s also an opportunity to demonstrate your professionalism and understanding of your worth. The fact is, data engineers are in high demand, and companies are competing for talent. You have more power than you might think when it comes to negotiating a fair compensation package that reflects the value you bring.

Keep in mind that, like any other ability, negotiating your salary in 2025 gets better with practice. Therefore, you will eventually become more at ease, even if you are a little anxious during your first significant discussion. And go back to resources like this if you need a refresher or new tactics (and don’t hesitate to share with that friend who is also preparing for a salary chat!).

Now go forth and get that. Data engineer salaries in 2025 are expected to be significantly higher due to the increasing demand for specific skills. You deserve!

Our personalized training programs can level up your data engineering skill set and put you in an even stronger position in the job market, particularly if you understand the cost of living in your desired area. After all, the more in-demand your skills, the more leverage you have to negotiate the salary you want!

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FAQ: How to Talk About Salary Like a Pro

Q: What’s the first step in a salary data engineer negotiation in 2025?

Do market research.

• Check the market data for engineers in San Francisco. Average salaries and trends for your experience level and location.
• Use multiple sources (e.g., Levels.fyi, job boards, guides) to find a realistic salary for an engineer in San Francisco.  range.
• Convert ranges into a target total compensation (base salary + bonus + Equity and stock options are crucial components of the total compensation package in the tech industry.

Q: How do I pick a target range for a data engineer offer?

• Anchor on total comp: Base salary + annual bonus target + annualized equity (RSUs/options).
• Set a target salary that reflects the current trends and negotiation strategies for software engineers. reach Set a number (ambitious) that aligns with the typical salary for data engineering roles. walk-away number (minimum you’ll accept).
• Adjust for industry trends. location, company size, and your position as an engineer in San Francisco can influence your leverage. skill set (cloud, streaming, ML, big data).

Q: How high should I counter the first job offer?

• Ask slightly above your true target; negotiations often land in the middle.
• Example: Offer $120K base → Counter $135K if your target is $130K, utilizing data pipelines to justify your request.
• Keep tone collaborative and professional.

Q: What are common mistakes that cost data engineers in San Francisco money?

• Accepting too fast; not negotiating before signing.
• Focusing only on base salary and ignoring bonus/equity.
• Giving a number without market data or business impact can be risky for engineers in San Francisco.
• Bluffing about other offers or bringing personal bills into the discussion.
• Not getting the final terms in writing can lead to confusion regarding the total compensation package.

Chris Garzon

Christopher Garzon has worked as a data engineer for Amazon, Lyft, and an asset management start up where he was responsible for building the entire Data Infrastructure from scratch. He is the author “Ace the Data Engineer Interview” and has helped 100’s of students break into the data engineer industry. He is also an angel investor, an advisor to multiple to multiple start ups, and the founder and CEO of Data Engineer Academy.