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Distinguished engineer · AK

Distinguished engineer equity comp in Alaska

How distinguished engineers earning large rsu + psu grants, sometimes options should plan around Alaska's no-income-tax regime.

Typical comp shape

Distinguished engineers usually earn large rsu + psu grants, sometimes options. Common employers include Alphabet, Microsoft, IBM. Total equity often rivals VP packages, so 10b5-1 plans and concentration hedging become central planning tools.

What Alaska changes

Alaska has no wage income tax, which is structurally favorable for distinguished engineers 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 distinguished engineer in Alaska, 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 Alaska for a high-tax state, time it around vesting.

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