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This seems like it's incorrectly estimating orders of magnitude. Some actual numbers: In 2019, Google's gross revenue was ~$162b. ~$76b went to "costs of rev
by comp_throw7 6y ago
This seems like it's incorrectly estimating orders of magnitude.
Some actual numbers:
In 2019, Google's gross revenue was ~$162b. ~$76b went to "costs of revenue", ~$26b went to R&D, and ~$11b to stock-based compensation. It's unclear what % of costs of revenue is attributable to "salaries of software engineers", though. Let's approach it another way. Google employs 30k+ SWEs, the vast majority of which are in the US. The median outlay probably falls somewhere in the L4 - L5 range, though there's a fat tail at the top. If we want to be conservative, we can just ignore the tail and say ~300k/dev. $300k * 30k = $9b (this is probably low).
Google's net income in 2019 was $34b. So you could multiply SWE comp at Google by not-quite-5 and zero out Google's net income.
What do top pro athletes make? Wikipedia says the top pro athletes earn mid-high eight-figures/year.
There's some headroom to pay engineers more, but it's definitely not "top pro athlete" more. Engineers can and do make that kind of money by founding & growing successful startups, not by working for FAANG (possibly with a very small # of exceptions at the top).
- dilyevsky 6y agoAlso consider that top athletes can only sustain that level of pay for max 10y while engineers generally can increase their comp for much longer. All in all I don’t think it’s a good comparison bc film/sport industries have constrained supply and demand - there’s only so many teams/films each year and only so many players/credited roles.