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Most tech companies do not make ICs millionaires.
by djur 3y ago
Most tech companies do not make ICs millionaires.
- tylerhou 3y agoGoogle and Meta do.
- bonzini 3y agoAt levels comparable to Facebook's E7/E8 they absolutely do. Most tech companies do not have an IC ladder that reaches that level. https://www.levels.fyi/?compare=Amazon,Google,Facebook&track=Software%20Engineer https://www.levels.fyi/?compare=Amazon,Google,Facebook&track...
- coldtea 3y agoMost FAANG ICs never reach those levels.
- oblio 3y agoWe're talking about several hundreds of people, 99% of which are located in a few high cost of living locations. Considering the fact that we're talking about millions of individual contributors, these people are statistically insignificant.
- adrianbordinc 3y agoYou don't need to make 1M a year to become a millionaire. Becoming millionaire doesn't mean having a 1M paycheck a year. You can get there in a couple of years with 0.X * 1M paychecks. For example can be E5 for 5 years at 350K/year, and that gets you there too. And there's not several hundreds E5s or equivalent, there's thousands+ of them.
- TimPC 3y ago$350k paycheck takes a fair amount of time to make a millionaire. You could be paying $72k/year in rent and $130k/year in taxes. If transit food and other expenses are $25k/year you pretty much need an 8 year run to save $1Mil. I’m also not sure $1M should be the standard for making people rich when the typical house where they live is $1.8M-$2.5M
- scarface_74 3y agoOr you can just not live in a high cost of living area…
- kevinventullo 3y agoRight. When I worked for Facebook in Boston my partner and I each paid $1500/month for a 2/1 in Cambridge. In-unit dishwasher but coin-op laundry in the basement. I also drove a 10-year-old Nissan. Maintaining a (grad_student)++ standard of living while working at big tech means your savings go up fast. Alas, my current monthly mortgage is certainly not $1500.
- TimPC 3y agoSure but most of tech companies have regional income adjustments and generally speaking your income adjusts in proportion to cost of living. Usually that means its worth living in a high cost of living area because your savings also scale. If you get $220k in rural montana instead of $350k in SF I don't think you come out ahead.
- scarface_74 3y agoBut then you got to live in SF… But the adjustment isn’t that much different.
- weeznerps 3y agoThe adjustment at the FAANG I work at is 15% less for base salary for the lowest cost of living areas. Stock grants are the same, if the stock price were to be perfectly stable this would be bit less than half of my total comp. This means at my level I make ~9% less because I live in the Midwest instead of the Bay Area. You definitely come out ahead.
- scarface_74 3y agoThe adjustment in base for me would have been about the same.
- hgsgm 3y agoE5 is millionaire net worth accumulation.
- zeroonetwothree 3y agoEven an E5 can become a millionaire pretty quickly. You can definitely save around 100k/yr at that income and with a 6% return (very reasonable) that ends up giving you $4m after 20 years or $8m after 30 years. So you will end up quite well off in retirement.