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The Great Tech Salary Crash

37 pointsby dbreretonalmost 3 years ago

16 comments

Pengtuzialmost 3 years ago
Tech = FAANG, Salary = Stock valuation<p>holy clickbait, Batman.
karlmdavisalmost 3 years ago
That… is not my understanding of the word “salary”; this article is conflating it with total compensation. Rather confusing.
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mooredsalmost 3 years ago
Focuses on stock grants from the big tech cos. Interesting, but more interesting to me is if salaries will drop across the board, which I feel will have a bigger impact on more people.<p>True title should be &quot;The Great Tech RSU Compensation Crash&quot;. :)
nottorpalmost 3 years ago
So... if you work for a public company that gives significant stock options, your total income has gone down.<p>Otherwise nothing changed.<p>How much rep do I need to downvote submissions again?
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twh270almost 3 years ago
Article seems to be clickbait and, worse, after scrolling partway a popup appears demanding an email address and prevents you from reading the rest of the article.<p>I have no patience for that kind of bullshit.
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cudgyalmost 3 years ago
Oh no! Stock options and other stock-based compensation for less than 1% of tech workers is suffering from the easily predictable end of the longest stock bull market in history.<p>Now that these shares are hammered and more fairly priced, wouldn’t these few, rare, lucky FAANG workers be better off since the share prices are less likely to fall as far now?
lordnachoalmost 3 years ago
Some people are going to buy the &quot;you&#x27;ll get shares at a better price at the next refresh&quot;, at least for a year or two. TBF, if that happens and prices go back you should be very happy.<p>Question is whether it&#x27;s going to be a multi-year collapse with the shares under water for ages and ages.
mgdevalmost 3 years ago
Facebook only granted stock yearly, even when their performance review process happened every six months. So that &quot;squeeze effect&quot; doesn&#x27;t mean much, IMO.
system16almost 3 years ago
I think a replacement acronym for FAANG may be in order if Netflix continues its downward trajectory because simply removing it from the current one won&#x27;t work.
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vikneshalmost 3 years ago
Another interesting factor (obviously not specific to tech) is inflation. This means that real wages probably declined by closer to 20-25% once accounting for that.
TrackerFFalmost 3 years ago
A year ago or so I heard about tech workers taking out margin loans (for home purchase) against their RSUs and similar. Wondering how that&#x27;s going right now.
sys_64738almost 3 years ago
Isn&#x27;t stock options meant to be under total compensation. Salary to me is the $$$ in my pocket that I get paid for showing up tomorrow, every two weeks.
kietayalmost 3 years ago
This is comparing expected growth numbers vs actual returns on equity grants
EGregalmost 3 years ago
Wouldn’t this actually drive the companies to offer higher base pay now?
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pcmoneyalmost 3 years ago
If your RSUs are significantly devalued due to a price drop most tech companies will just give you a supplemental refresh to bring you back up. You might not be 100% whole to your target total comp but nobody is letting good engineers take a 35%+ cut to TC (65% to stock) because if they do they will lose their top talent.<p>If I am a strong engineer and my comp gets cut by a 65% reduction in share price and I am at a BigTechCo then I can probably pretty easily:<p>1. Move to a peer company in regards to comp (Meta, Goog, Twtr, Msft, uber, airbnb)<p>2. Get a signing bonus of $40-100,000+ To do so<p>3. Get a new hire set of RSUs with a valuation at the current share price vs my previously underwater ones (which if the whole sector has gone down will probably work out really well for me long term).<p>TL;DR total comp at the elite&#x2F;liquid RSU level wont go down much.
dborehamalmost 3 years ago
s&#x2F;overtime&#x2F;over time&#x2F;