That's what she said !

Buffr salary transparency

“One of the toughest decisions we made with the new formula was to remove the annual 3% loyalty increase given to teammates for each anniversary from their start date. > We looked at a lot of options and in the end decided to remove it as it created an unsustainable, compounding affect on pay.”

“Back in 2013, we began offering teammates the option between an additional $10,000 in annual salary or accepting 30% more in stock options.
71% of our current team opted to take the higher salary choice. This created an annual budget impact of $510,000.
In the end, we decided that in many ways we’ve outgrown the initial intention of this generous offer. ”

https://news.ycombinator.com/item?id=15861043
Permalink HN reporter 
December 6th, 2017 9:31am
What effect that has depends on whether their key people can earn more elsewhere.

They are claiming that their 3% annual auto-raise, which doesn't even keep up with the real rate of inflation right now, is making them broke, and has raised salaries out of competitiveness.

We shall see if that is true.

If the key people leave to make more elsewhere, then they'll have been wrong in their bet.

If everyone stays, then looks like they were right, the entire staff was overpaid and needed a downward adjustment.
Permalink Reality Check 
December 6th, 2017 9:37am
https://open.buffer.com/salary-formula/

Their US staff salaries are WAY below market rate.

If you're one of their remote developers working from Spain or UK, Italy, France... you're making 5-10 times more than you could from any other place in your country.

Really interesting to see that their pay is same for US and third world (Spain, Italy, France) staff.
Permalink Reality Check 
December 6th, 2017 9:40am
Starting from SF median is too low in SF
Permalink Q 
December 6th, 2017 9:43am
Base camp model

Our market rates are based on Chicago. Chicago isn’t the top of the market — you’ll find higher rates in Silicon Valley or New York — but it’s not far off either. So whether you live in Tennessee or Arizona or Alaska or Illinois, we pay the same.

Raises happen automatically, once per year, when we review market rates. Our target is to pay everyone at the company in the 95th percentile, or top 5%, of the market, regardless of their role. So whether you work in customer support or ops or programming or design, you’ll be paid in the top 5% for that position.

We don’t pay traditional bonuses at Basecamp either, so our salaries are benchmarked against other companies’ salary + bonus packages. (We used to do bonuses, many years ago, but found that they were quickly treated as expected salary anyway.)

There are no stock options at Basecamp because we never intend to sell the company. (But we’ve vowed to distribute 5% of the proceeds to all current employees if, against intentions, we did sell the company anyway).

We’ve also recently put a new profit growth sharing scheme in place. If total profits grow year over year, we’ll distribute 25% of that growth to employees in that year.
Permalink Q 
December 6th, 2017 9:59am
Buffer has Chicago at .85 cost of living adjustment. The same adjustment they use for their employees in Kentucky, Ozark, Missouri and rural France and Italy.

Their 1.0 multiplier applies only to NYC, San Francisco and Santa Cruz employees.

I do NOT think Chicago has the same cost of living as Ozark Missouri. But Joel does.
Permalink Reality Check 
December 6th, 2017 10:31am
Buffer's "Senior Engineer" in Chicago is going to go from $145,268 to $123,477 under the new pay scale.

As a senior engineer, he can do a lot better. A $22k salary decrease for a senior engineer based on "administrative adjustment" and not some personal issue, like massive failure to perform, lying on resume, etc, is a massive slap in the face.

Personally, even if I didn't have another job lined up, and even if I couldn't get more elsewhere, I would quit on a $22k salary reduction that wasn't based on my performance. And if I did have performance bad enough to justify that, I think they should just fire me instead of do this $22k thing.
Permalink Reality Check 
December 6th, 2017 10:35am
The Chicago guy is Harrison J. Harnisch. Let's keep an eye on him and see how he responds to this change.
Permalink Reality Check 
December 6th, 2017 10:37am
In addition, if he took the $10k salary option in lieu of stock, his salary will be decreased another $10k starting in 2019.
Permalink Reality Check 
December 6th, 2017 10:38am
>Our target is to pay everyone at the company in the 95th percentile

Everybody should do that.
Permalink libtard_uk 
December 6th, 2017 11:06am
Salary.com has Chicago 50th%ile for Data Scientist as $139k and 75th%ile $162k. 95th not listed, but looking at the bell curve would be above $200k.

salary.com is below actual street salaries since they average reports going back years rather than figuring out what the current year is.

Does base camp list their actual salaries? I want to see if I agree they are paying 95th %ile including bonus.
Permalink Reality Check 
December 6th, 2017 11:20am
Senior Web Engineer in Chicago has $152k mean, $171k 75th%.

25th is $139k.

That means Joel's highest paid guy in Chicago is making well below the 50th and his new salary will be below the 25th percentile.

Joel keeps saying he hires the best and the brightest.

Apparently they are somehow too stupid to know what they are worth?
Permalink Reality Check 
December 6th, 2017 11:25am
Hey hey, I don't do any coding but just reading for stock trading on the side and I make 55K this year. These guys are losers!
Permalink BibimbapClinton 
December 6th, 2017 11:27am
> Senior Web Engineer in Chicago has $152k mean, $171k 75th%.

>  I make 55K this year.

Maybe you should learn web engineering?
Permalink X 
December 6th, 2017 4:19pm
I make 55K in stock trading. Did you read that?
Permalink BibimbapClinton 
December 6th, 2017 4:25pm
Pick a stock
Sell when it goes high
Profit!
Permalink BibimbapClinton 
December 6th, 2017 4:25pm
I challenge you to deliver Pizza after regular job and match my stock trading on the side, X.
Permalink BibimbapClinton 
December 6th, 2017 4:28pm
X, you should do web engineering on the side too. If you are Bob from Atlanta, it is actually your regular job isn't it?
Permalink BibimbapClinton 
December 6th, 2017 4:29pm
> I make 55K in stock trading. Did you read that?

Sure did! I even quoted it in my reply.

Did you see the part where web devs in Chicago make 3 times that?
Permalink X 
December 6th, 2017 4:37pm
Yeah, but 55K isn't my real job.
Permalink BibimbapClinton 
December 6th, 2017 4:40pm
My real job is Software Developer!
Permalink BibimbapClinton 
December 6th, 2017 4:40pm
You figure out the salary...
Permalink BibimbapClinton 
December 6th, 2017 4:40pm
I'll give you a hint...my tax rate next year will go from 28% to 25%.
Permalink BibimbapClinton 
December 6th, 2017 4:42pm
> .my tax rate next year will go from 28% to 25%.

marginal or effective?
Permalink X 
December 6th, 2017 4:43pm
> .my tax rate next year will go from 28% to 25%.

marginal or effective?
Permalink X 
December 6th, 2017 4:43pm
effective.
Permalink BibimbapClinton 
December 6th, 2017 4:45pm
He blended rare on all your income?
Or the top rate on the next dollar you earn?
Permalink X 
December 6th, 2017 10:23pm

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