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This post from GitLab has their official explanation of why they pay local rates: https://about.gitlab.com/2019/02/28/why-we-pay-local-rates/ https://about.gitl

This post from GitLab has their official explanation of why they pay local rates: https://about.gitlab.com/2019/02/28/why-we-pay-local-rates/ https://about.gitlab.com/2019/02/28/why-we-pay-local-rates/

lordfoom 7y ago
That's a lot of spin on "to save money". They mention San Francisco rents, but they fail to mention all the advantages of living in San Francisco. Awesome for the folks in San Fran to have their lifestyle's subsidized. AND then they spread some FUD with "Remote companies using a standard pay structure are reportedly running into problems with their compensation plans" - nice and vague and ominous. Doesn't even mention what issues they're running into, just "issues". AND then they end with the weak they " hope location band salaray gaps will continue to narrow", as if they genuinely wish they could pay more, but their hands are tied. I think gitlab is a great project, but that is some grade A bullshit.
- andrew_ 7y ago
  One of the benefits of working remotely is that we can escape our local markets' pay scales. Working from anywhere shouldn't negatively affect one's value.
umeshunni 7y ago
Thanks for sharing that. I had a look at their stock options page: https://about.gitlab.com/handbook/stock-options/ https://about.gitlab.com/handbook/stock-options/ and think that it's very misleading. > The reason we give stock options instead of straight stock is that you do not need to spend any money to purchase the stock at the date of grant and can decide to purchase the stock later as your options vest. In addition, we do not provide straight stock grants since this may subject you to immediate tax liabilities. Having worked at pre-IPO companies before, both these statements are untrue 1. Most companies issue RSUs instead of straight up stock. No one makes you 'buy' your RSUs. 2. Every pre-IPO company has a double-trigger vest condition where you 'own' the stock only at IPO or acquisition and you only owe taxes then (and most companies auto-sell a portion at IPO to cover taxes).

lordfoom 7y ago

That's a lot of spin on "to save money". They mention San Francisco rents, but they fail to mention all the advantages of living in San Francisco. Awesome for the folks in San Fran to have their lifestyle's subsidized. AND then they spread some FUD with "Remote companies using a standard pay structure are reportedly running into problems with their compensation plans" - nice and vague and ominous. Doesn't even mention what issues they're running into, just "issues". AND then they end with the weak they " hope location band salaray gaps will continue to narrow", as if they genuinely wish they could pay more, but their hands are tied. I think gitlab is a great project, but that is some grade A bullshit.

andrew_ 7y ago
One of the benefits of working remotely is that we can escape our local markets' pay scales. Working from anywhere shouldn't negatively affect one's value.

umeshunni 7y ago

Thanks for sharing that. I had a look at their stock options page: https://about.gitlab.com/handbook/stock-options/ https://about.gitlab.com/handbook/stock-options/ and think that it's very misleading. > The reason we give stock options instead of straight stock is that you do not need to spend any money to purchase the stock at the date of grant and can decide to purchase the stock later as your options vest. In addition, we do not provide straight stock grants since this may subject you to immediate tax liabilities. Having worked at pre-IPO companies before, both these statements are untrue 1. Most companies issue RSUs instead of straight up stock. No one makes you 'buy' your RSUs. 2. Every pre-IPO company has a double-trigger vest condition where you 'own' the stock only at IPO or acquisition and you only owe taxes then (and most companies auto-sell a portion at IPO to cover taxes).