The Decline of Big Tech Salaries: Understanding the Changes

📉Big tech salaries that were growing exponentially are now declining due to cost-saving measures.

💰Tech compensation primarily consists of stock grants, which unlock over multiple years and can be affected by fine print.

📈As big tech companies mature, the expected returns on stock compensation decrease, impacting total compensation.

🗺️Big tech companies are focusing on hiring in lower cost-of-living areas and offshoring jobs to reduce expenses.

🏢Big tech employees are experiencing upfront salary cuts due to remote work and cost-saving measures.

Why are big tech salaries declining?

—Big tech salaries are declining due to cost-saving measures implemented by companies, remote work salary reductions, and the decrease in expected returns on stock compensation.

How are big tech companies implementing salary cuts?

—Big tech companies are implementing hidden salary cuts through fine print and front-loaded vesting schedules, inflating 1st-year compensation with a lower overall stock grant.

Are big tech salaries still higher compared to other industries?

—Yes, despite the decline, big tech workers still earn significantly higher compensation compared to other industries.

Will big tech companies become less attractive for top talent?

—It is likely that top talent will start leaving big tech companies as the work becomes more focused on maximizing profitability rather than innovating and building the next big thing.

What impact will these changes have on big tech companies?

—Big tech companies are expected to increase their operating profit per employee and focus on maximizing profitability. However, these changes may result in companies reaching their maturity stage and potentially losing top talent.

00:00Over the past decade, tech salaries have experienced exponential growth.

01:59Big tech companies are implementing hidden salary cuts through fine print and front-loaded vesting schedules.

05:12Google has adopted a new front-loaded vesting schedule, reducing stock compensation over time.

08:44Big tech companies have also implemented upfront salary cuts for remote workers.

11:44The decline in big tech salaries may lead to top talent leaving for smaller companies.

12:23Despite the decline, big tech workers still earn higher compensation compared to other industries.