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Director of engineering · TN

Director of engineering equity comp in Tennessee

How director of engineerings earning large rsu + psu grants should plan around Tennessee's no-income-tax regime.

Typical comp shape

Director of engineerings usually earn large rsu + psu grants. Common employers include Meta, Stripe, Salesforce. Director-level equity refreshes can exceed $1M annually, so 10b5-1 plans and QSBS stacking become primary planning tools.

What Tennessee changes

Tennessee has no wage income tax, which is structurally favorable for director of engineerings with meaningful RSU comp. The savings vs a CA-resident colleague can be $30-60k per year at senior IC levels. That math is why Austin and Seattle are the two top relocation destinations for Bay Area tech workers.

Planning cadence

For a director of engineering in Tennessee, the three planning windows are: after each RSU vest (withholding check and sell-vs-hold), before any ISO exercise (AMT model at federal only), and in Q4 (estimated tax top-up to clear the safe harbor). A move-out question — if you're considering leaving Tennessee for a high-tax state, time it around vesting.

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