Many companies offer a stock grant on joining the company which vests over a period of 4 years. What happens after all of this stock vests? Does the compensation drop significantly in the 5th year?

I agree that every year there are stock rewards and base pay increments. There are promotions too within the 4 years. However, the initial stock grant is quite big, and combined with the increase in price of the stock over the last 4 years makes it huge in the 4th year. Thus, it looks like there would be a huge drop in compensation in the 5th year.

If anyone can share their experience, it would be great.