As I recall, none of Basecamp’s staff actually live in SF so everyone wins! The main goal here appears to be securing their talent, as it’s becoming increasing

As I recall, none of Basecamp’s staff actually live in SF so everyone wins! The main goal here appears to be securing their talent, as it’s becoming increasingly difficult to hold onto staff and create a stable enterprise. I imagine that only becomes more difficult when you’re a distributed team. From the employee perspective: Will you really switch jobs now that your salary is top of market for your location? Any job nearby won’t pay you anywhere near that salary! You will have to move to the valley. So it obviates job choice based on salary being a deciding factor in your life, your location and your connections. (Just because SF and other places have opportunity doesn’t make it attractive to all - opportunity cost like being away from family or friends can outweigh it.) It’s then entirely up to you where you live and how beneficial you make that salary to you and your family. The community where the staff live benefits too. Their surplus income will most likely be spent locally and depending on how they’re taxed, the local authority will benefit too. Basecamp also has a sideline benefit: the massive PR that comes from awareness of this. And I bet they get droves of great talent jumping all over their new positions this year, from everywhere, _especially_ the valley! Great tactic. Putting people first.