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> The startup offers I've seen in the bay area for SWE a couple years out of school are pretty high, $150k - $185k which is pretty good cash comp from a startup

> The startup offers I've seen in the bay area for SWE a couple years out of school are pretty high, $150k - $185k which is pretty good cash comp from a startup. I agree that is pretty good for a Bay Area startup, but it is far below the total compensation a FAANG company offers today. After several years, the RSUs at a FAANG could pay out more every year than the salary, and they are immediately sellable on the open market. Startup options are likely to be worthless. This is why startups have a hard time hiring. A lot of engineers would rather work for FAANG or similar large companies, where they will make a lot more money with much less risk.

fossuser 7y ago
Yeah, but I think startups are a different bet - either on comp (betting on equity) or on learning (more access to building a company). OP seemed to suggest that startups have trouble hiring because they don't pay enough and I think that's not entirely true from what I've seen. They don't pay more than FAANG which is expected, but they're not underpaying for that trade-off. I do agree though that FAANG salaries have gotten extreme so it's a harder opportunity cost than it used to be. If you can swing $350k at Netflix or $200-400k+ total comp at the others and you work there for 5-10 years that's basically a small startup exit. I think it used to be less dramatic. I think the misery of the technical interview process is actually the thing that limits mobility most. Some of my extremely capable friends (that do work at FAANGs) don't optimize on moving around or income as much as they could because the process is so painful and anxiety inducing.
- twblalock 7y ago
  The salary difference definitely used to be less dramatic. It is now at least a $100k difference in annual total comp, and it can be more than a $200k difference in some cases.

fossuser 7y ago

Yeah, but I think startups are a different bet - either on comp (betting on equity) or on learning (more access to building a company). OP seemed to suggest that startups have trouble hiring because they don't pay enough and I think that's not entirely true from what I've seen. They don't pay more than FAANG which is expected, but they're not underpaying for that trade-off. I do agree though that FAANG salaries have gotten extreme so it's a harder opportunity cost than it used to be. If you can swing $350k at Netflix or $200-400k+ total comp at the others and you work there for 5-10 years that's basically a small startup exit. I think it used to be less dramatic. I think the misery of the technical interview process is actually the thing that limits mobility most. Some of my extremely capable friends (that do work at FAANGs) don't optimize on moving around or income as much as they could because the process is so painful and anxiety inducing.

twblalock 7y ago
The salary difference definitely used to be less dramatic. It is now at least a $100k difference in annual total comp, and it can be more than a $200k difference in some cases.