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Absolutely not, it's a VC ecosystem oddity just like people saying they make $400k when most of that is stock and sometimes there isn't even a liquid market for

by pc86 3y ago

Absolutely not, it's a VC ecosystem oddity just like people saying they make $400k when most of that is stock and sometimes there isn't even a liquid market for it. The median software engineer salary in the US is something like $110k. Still about twice the average individual income in the US[0], but the vast majority are going to be making 99% of their income in cash compensation including bonuses. I've worked for about a dozen companies based across the US in a variety of industries, and never have I or any of my coworkers had access to stock as part of compensation. [0] https://fred.stlouisfed.org/series/MEPAINUSA672N https://fred.stlouisfed.org/series/MEPAINUSA672N

shortrounddev2 3y ago
I believe that a lot of companies offer stock options for two reasons: 1. Software engineers have come to expect it 2. It provides a very cheap incentive for the engineer to remain at the company for the N number of years required to vest And in the end, they may still end up being worthless
- pc86 3y ago
  If you want to use "software engineers" to describe everyone in the US who writes code, I don't think #1 is accurate at all. Half of the developers in the US make less than $100k/yr. Most of these people work for banks, small mom-and-pop companies that have 1-3 developers. Public companies with bigger teams who don't give stock to anyone below the VP level. If your entire exposure to software development has been startup fantasy land where profitability doesn't matter yeah most of those companies are giving everyone stock down to the person at the front desk answering phones. That's the minority by every metric - number of companies, number of developers, total revenue, everything. I don't think anyone expects stock compensation unless they're artificially limiting their search to that type of company.
  - shortrounddev2 3y ago
    I can't speak for all engineers, but I've worked at mid-size companies, huge companies, and startups. At each one, I was granted stock options that I had no faith in the value of (and most of which actually declined in value). Many of my coworkers talked about their stock options as part of their TC though. My experience is probably not the norm though

by pc86 3y ago

shortrounddev2 3y ago

I believe that a lot of companies offer stock options for two reasons: 1. Software engineers have come to expect it 2. It provides a very cheap incentive for the engineer to remain at the company for the N number of years required to vest And in the end, they may still end up being worthless

pc86 3y ago
If you want to use "software engineers" to describe everyone in the US who writes code, I don't think #1 is accurate at all. Half of the developers in the US make less than $100k/yr. Most of these people work for banks, small mom-and-pop companies that have 1-3 developers. Public companies with bigger teams who don't give stock to anyone below the VP level. If your entire exposure to software development has been startup fantasy land where profitability doesn't matter yeah most of those companies are giving everyone stock down to the person at the front desk answering phones. That's the minority by every metric - number of companies, number of developers, total revenue, everything. I don't think anyone expects stock compensation unless they're artificially limiting their search to that type of company.
- shortrounddev2 3y ago
  I can't speak for all engineers, but I've worked at mid-size companies, huge companies, and startups. At each one, I was granted stock options that I had no faith in the value of (and most of which actually declined in value). Many of my coworkers talked about their stock options as part of their TC though. My experience is probably not the norm though