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Google's Engineers Are Well Paid, Not Just Well Fed

D H NG writes "According to a study by the career site Glassdoor, Google tops the list of tech companies in the salaries it pays to software engineers. Google paid its engineers an average base salary of $128,336, with Microsoft coming in second at $123,626. Apple, eBay, and Zynga rounded off the top 5."

62 of 342 comments (clear)

  1. $128,000? by crazyjj · · Score: 5, Funny

    Considering the amount of effort in getting a job there, the hours worked, and the cost of living in Mountain View, I think that roughly equals minimum wage. Maybe they need a software engineers' union.

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    1. Re:$128,000? by Anonymous Coward · · Score: 5, Funny

      Jesus, that's roughly 3x's what I make, and I'm on call 24/7. But then I'm not a genius with 3 phd's like the people that mop floors at google.

    2. Re:$128,000? by darjen · · Score: 5, Insightful

      Frankly, I would rather earn 90k, work less, and have more free time to spend with my family.

    3. Re:$128,000? by Anonymous Coward · · Score: 5, Informative

      I work at Google and don't have long hours. I am on an on call rotation, but for a lot of teams, there are dedicated people on call, with a resulting salary bonus. (And the work load for being on call is really very minimal.)

    4. Re:$128,000? by kronak · · Score: 2

      I work for a well-known company (which for NDA reasons must remain unnamed) that is typically associated with "long hours." It's not true. The extra hours are optional. Most of the folks who stay past 6 or 7 either REALLY love what they're doing, or have no idea how to manage their time.

    5. Re:$128,000? by Just+Some+Guy · · Score: 4, Insightful

      I work for a well-known company (which for NDA reasons must remain unnamed)

      You have an NDA that you can't even name your employer?

      Most of the folks who stay past 6 or 7 either REALLY love what they're doing,

      I work in an office stuffed with people who love their jobs. The ones who don't aren't around long (and tend not to get hired in the first place). My boss is big on people being to work by 9, and at 5:15 the place is a ghost town.

      I REALLY love what I'm doing. I also REALLY love my wife and kids and would rather be hanging out with them than pretty much anyone else.

      or have no idea how to manage their time.

      This. I've seen way too many people sit at work for 12 hours but only work for 6. I'd much rather work a solid 8 hours then go home, relax, rest up, and do it again the next day.

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    6. Re:$128,000? by tompaulco · · Score: 2

      Frankly, I would rather earn 90k, work less, and have more free time to spend with my family.
      So would I, but unfortunately, I don't make that much, I work way too many hours, and have little time to spend with my family. But then, I am just a lowly Director of Development, not one of those fancy entry level software engineers.

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    7. Re:$128,000? by NatasRevol · · Score: 2

      If you're making $40k in the US, you're not developing software like the software engineers at Google are.

      Or you graduated with a 2.4 GPA.

      --
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    8. Re:$128,000? by metamatic · · Score: 2

      Considering the amount of effort in getting a job there, the hours worked, and the cost of living in Mountain View, I think that roughly equals minimum wage.

      You were moderated funny, but that's actually insightful. According to an online Cost of Living Comparison Tool, if I wanted to accept a job at Google they'd need to more than double my salary.

      I think that their insistence on moving engineers to Mountain View is likely hurting them.

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    9. Re:$128,000? by darjen · · Score: 3, Interesting

      It's not my salary, just a number I picked. The going rate for a senior developer in my area seems to be hovering around 85-90.

    10. Re:$128,000? by swillden · · Score: 5, Informative

      I work at Google and don't have long hours. I am on an on call rotation, but for a lot of teams, there are dedicated people on call, with a resulting salary bonus. (And the work load for being on call is really very minimal.)

      +1.

      I'm not on an on-call rotation at the moment (though I'm thinking about asking to get back on it, because the extra cash is quite good). I typically work 7:30 AM to 4:30 PM, Monday, Wednesday and Friday, and 6:30 AM to 5:30 PM Tuesday and Thursday(*). So, not counting lunch hours, that's 42 hours per week. On occasion I put in some extra hours during crunch time, but that's not common. For example, two weeks ago I worked a normal day, then got home, spent some time with the family and then worked from home from 10 PM until 3 AM to get some stuff done to meet a deadline before an internal release (dogfood release). That sort of thing seems to happen once per month or so, but outside of that I pretty much work a 40-hour week.

      So, no, the hours at Google aren't insane. Now, *lots* of Google employees do work very long hours, but that's because they want to. I would actually like to work more myself, because I really enjoy what I do, but I also like time at home with the family and I have church responsibilities. Perhaps in a few years when my kids have all moved out I'll ramp up my hours. In the meantime, no one is putting the slightest pressure on me to work more. Now, I could probably do more if I worked more, and maybe eke out a slightly higher performance rating, which might translate into more money... but I'm already pretty comfortable with my compensation, and my manager is quite happy with my current performance.

      As for cost of living... I'm at the Boulder, Colorado office (which is hiring, BTW :-)).

      (*) The reason for my MWF / TTh schedule split is that I ride my bicycle to work MWF. It's a 25-mile ride so when you include showering time it takes me about 90 minutes each way. So what I actually do is leave home every day at 6:00 AM and arrive home at 6:00 PM. The days I ride that works out to a 7:30-4:30 work schedule. The days I drive, I work the two hours "saved" from my bike commute.

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    11. Re:$128,000? by Anonymous Coward · · Score: 5, Interesting

      Meh. I was offered a job at google but turned it down. Although the raw number is more than I make now, it would have been a pretty severe pay cut when you factor in the cost of living.

    12. Re:$128,000? by czth · · Score: 3, Insightful

      Are you claiming that salaries in Atlanta (the one in Georgia, right?) are at $228k for developers? Or are you translating it to a contracting/consulting rate? Or is that just your way to say that there are no good candidates for openings in Atlanta?

      For $228k I'd probably move to Atlanta tomorrow if the job was interesting at all.

    13. Re:$128,000? by Applekid · · Score: 4, Insightful

      I work at Google and don't have long hours. I am on an on call rotation, but for a lot of teams, there are dedicated people on call, with a resulting salary bonus. (And the work load for being on call is really very minimal.)

      Google question then, how does one actually get help from Google? I like a lot of their stuff but abandon all hope if you need to talk to a human to figure out why an email isn't going through gmail or resolve issues from the Play store (see Nexus 7 preorder fiasco, "resolve issues" not just "say whatever they want to hear to get them off the phone") or report downright errors in shopping.google.com?

      I can't imagine needing any on-call at all when the end-user support is basically a doormat that reads "GO AWAY"

      --
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    14. Re:$128,000? by MisterSquid · · Score: 4, Insightful

      According to an online Cost of Living Comparison Tool, if I wanted to accept a job at Google they'd need to more than double my salary.

      I think comparison tools are very inaccurate about what things actually cost and obscure the value of things that are usually summed up with the phrase "quality of life".

      I live and work in SF after having come from Athens, OH, and your comparison tool is telling me that if I moved this year I would need need 117% more money than I did in Athens. I actually make about fifty percent more than I did when I lived in Ohio and I have much more money than I did when I lived in Ohio.

      More importantly, there are some things no amount of personal compensation could provide: ethnic diversity, world class cuisine, sublime landscape, beautiful weather year round, municipal infrastructure (no boil orders for septically contaminated water), and a dozen other things even 50 years of economic development could not deliver to places like the one I lived in in Ohio.

      "Cost" of living is not just about money and direct comparisons based on money equivalence don't capture the whole picture.

      --
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    15. Re:$128,000? by MasaMuneCyrus · · Score: 5, Insightful

      If you're making $40k in the US, you're not developing software like the software engineers at Google are.

      Or you graduated with a 2.4 GPA.

      It varies by state. The median income can vary by more than $30,000 by state. Your income for a specific profession could vary by a much larger amount, depending on a number of factors.

    16. Re:$128,000? by scamper_22 · · Score: 2

      you're rated as funny... but I mean... people should keep it in perspective.

      How are salaries of doctors, lawyers, teachers, fire fighters, police officers, pharmacists, accountants...

      128k in the most expensive jurisdiction for a company known to hire the best and brightest with PHDs and Masters... and little to no job security and no pension.

      Yeah... doesn't sound like much to me.
      It's not bad by any means... but look around at what the rest of regular society earns and consider that Google is supposed to be the best of the best.

    17. Re:$128,000? by DerekLyons · · Score: 3, Insightful

      My thoughts exactly - they may be well educated, and they may be well paid and have an excellent compensation package... but what in the H-E-doublehockysticks are they actually *doing*? Most of Google products languish under a regime that can be charitably be described as "benign neglect" and the balance are updated only sporadically.

    18. Re:$128,000? by shentino · · Score: 2

      Some people like to follow the rules on principle and don't care if they'll get caught or not?

    19. Re:$128,000? by KingMotley · · Score: 3, Funny

      You have an NDA that you can't even name your employer?

      Yes, some of us do. For example, I'm not currently allowed to mention that I work for them, and I can not do so for 1 year after I leave.

    20. Re:$128,000? by Anonymous Coward · · Score: 4, Interesting

      I make more than $40k as a software developer, but it wasn't too long ago that I was making right around that amount.

      I have an AAS (not a fancy degree, if you didn't already know), my GPA was 2.8, and I assure you that neither of those things has EVER come up in a job interview. I'm also old enough that my transcripts are gone. (Schools only keep them for about 10 years. After that, nobody's looking anyway.)

      The factors that kept me from making more are:
      - Timing. The dot-com "crash" of 2000 happened during my last full semester of college. I didn't land a job in the industry until 5 years later.
      - Lack of experience. Since the dot-bomb dropped during my college days, nobody wanted interns either. No experience = no job.
      - Lack of money. I grew up in a just-above-the-poverty-line household. I had to scrape by to even get a community college education, and that didn't get me a job once there were so many out-of-work developers on the job market after the crash.
      - Location. The midwest is a "small market" even in the larger cities. You don't pay as much for housing, but you also don't make as much.

      So when I did finally land a programming job, it was as a code monkey in a PHP sweatshop. The headhunter wanted a decent payout, so I started at $40k. No raises. Got laid off after a year and a half due to it being a sweatshop and I had outstayed my welcome. (Basically, I wanted more money and they didn't want to give me any more money.)

      Next job was a startup. Still $40k. Over 2.5 years, I got a couple of small raises. I topped out at $45k-ish before I got laid off during the early days of the recession.

      Next job was through a headhunter again. I asked for $50k, but the employer could only go $40k. After 3 years and a few raises, I'm finally at $50k.

      I could probably go to the larger employers in this city and make $70k, but that's really the limit in this area. Nobody in this line of work makes more than about $80k here.

    21. Re:$128,000? by TheSpoom · · Score: 2

      I thought the CIA had a cover company for those purposes.

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    22. Re:$128,000? by Anonymous Coward · · Score: 2, Interesting

      Currently interviewing with them now. I'm just seeing how it goes, but I don't have any real belief that I'll accept the job even if they give me one. For one thing, I'd have to move to Mountain View or some other area, which I don't want to do, and I probably make almost as much as they are willing to pay me without having written a book. But, you never know, they are definitely capable of paying very well, so I am not ruling it out.

      The interview process is a lot more rigorous than what I usually get, although I have been asked technical questions before in interviews, even made to write out code. Thing is, it's clear they are working to weed out candidates amongst a pool of otherwise well-qualified people. The questions I have gotten so far are corner-case masturbation, not insightful questions that reveal my thinking or problem solving process, but then I have only been through two rounds, so perhaps they wait until the later rounds to actually bother with more insightful interviewing.

      They are entitled to interview any way they want, of course, and they certainly have smart people working for them, so they can't be doing anything particularly wrong. Still, just like most places where they grill you, it feels sort of like a stunt or a hazing ritual. Some of the worst places I have worked for are also the ones where they are the most restrictive in hiring and absurd with their interview process. I have trouble believing Google is like that, but there's no way for me to know.

      It would be interesting to work for Google, although I am well point the point in my career where I am willing to accept compromises in pay or living situation just to work for a cool company, particularly one who is already past their IPO and starting to attract anti-trust suits.

    23. Re:$128,000? by citizenr · · Score: 2

      Google question then, how does one actually get help from Google? I like a lot of their stuff but abandon all hope if you need to talk to a human to figure out why an email isn't going through gmail or resolve issues from the Play store (see Nexus 7 preorder fiasco, "resolve issues" not just "say whatever they want to hear to get them off the phone") or report downright errors in shopping.google.com?

      I can't imagine needing any on-call at all when the end-user support is basically a doormat that reads "GO AWAY"

      At those wages they cant afford real human support. Could you imagine $100K guy sitting on irc typing "have you tried turning it off and on again"?

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    24. Re:$128,000? by CAIMLAS · · Score: 2

      Yeah, 128k/year does not

      That said, you've got to consider the perks Google offers, too. I imagine they still offer stocks, which has quite a lot of value in and of itself, but it's well known that they offer their customers:

      * Very generous healthcare plans
      * Very high quality free cafeteria food on campus
      * Flexible schedules
      * Game and recreation rooms
      * Exercise facilities

      So it might be less than what Microsoft might pay their customers, once you adjust for the local cost of living and the suffering required to live in the SF Bay area, but I'm going to guess that the work environment is much more enjoyable than at Microsoft. For me, the full cafeterias alone would be worth an extra $15k a year or so - I'm a picky eater and hate cooking unless it's with someone beautiful. :P

      That said, I make about $55-$65k normally, pay no state income tax, and work from home and much pay less for a mortgage on a 2000sqft house with a nice yard than a studio apartment in SF. I'm having chicken soup with my daughter right now at my kitchen table, because she was sick and I had to pick her up from school 2 blocks away. I am making way, way more than the average Googler is. :D

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    25. Re:$128,000? by Branciforte · · Score: 3, Interesting

      PhD don't matter that much at Google. I have a BS in Math and a 2.2 GPA and I make much more than $128k working at Google. During the interview process, they don't even ask about degrees or GPA unless you are fresh out of school and they have nothing else to go by.

    26. Re:$128,000? by Branciforte · · Score: 2

      So, you did that with the knowledge that base salary is only about half of your total compensation at Google, right?

    27. Re:$128,000? by Algae_94 · · Score: 4, Insightful

      Under $100k in my area (suburban Washington DC), is barely a living wage.

      It's amazing how weak people get once they get paid a good salary for any length of time. Why don't you try going to a park and finding a homeless guy that sleeps on a bench and tell him how you can barely live with less than $100k a year.

      You are either exaggerating, or you have no concept of what is really needed to live and what things are luxuries.

    28. Re:$128,000? by Synerg1y · · Score: 2

      GPA couldn't have less to do with the real world job market.

    29. Re:$128,000? by kirkb · · Score: 3, Funny

      For $228K, I'd move to Atlanta tomorrow even if the job was licking zits.

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    30. Re:$128,000? by CycleMan · · Score: 2

      Let's say rent is about $3,000/mo, pretty common in areas like DC, NYC and the Bay Area. You have a student loan payment of $2,000/mo.

      That's an uncommon situation. (I was about to say "You're doing it wrong," but your circumstances may be different than the average.) A study released this week showed that 2/3 of college graduates have debt upon graduation, and the average debt incurred is $26,500 (average in California is lower, $18,900). At $2000/month, that would be paid off in a year and a half even with a high interest rate. But perhaps you borrowed much more than the average. Then yes, times are tight for you personally, but the other folks making $100k are doing well.

      Housing: Why are you paying $3k/month for rent? That's enough for a mortgage payment and property taxes for a $625K house (which is above average for the Bay Area, including most parts of Silicon Valley). And part of that you get to deduct off your taxes, and part of that you get back when you sell the place. So $3k to rent is just silly. If the place truly is worth $3k, it's large enough for you to get a housemate. Your wallet will thank you for the extra $1500.

  2. That's it? by CMU_Ken · · Score: 3, Insightful

    128k? That doesn't seem like much once you factor in cost of living for the locations these companies reside in.

    1. Re:That's it? by CMU_Ken · · Score: 5, Informative

      And to add to my previous comment, I wish GlassDoor would redo their study after factoring in cost of living. Then we'd see who's *really* paying their engineers.

    2. Re:That's it? by mcgrew · · Score: 5, Insightful

      I wish GlassDoor would redo their study after factoring in cost of living. Then we'd see who's *really* paying their engineers.

      That's something people don't seem to get, not even economists. I'm twice as rich as someone in Chicago who earns the same salary as me, because prices up there are twice as high.

      I took a required economics class as an undergrad (late 1970s), and on the first day of class the three instructors were saying that Americans made too much money, there was going to be a crash, and that we would be earning the same as someone in a third world country.

      I'd been in the USAF the previous four years. In Deleware I was a pauper; they don't pay airmen jack shit. When I was stationed in Thailand (then still not developed, although it's completely different now) I lived like a king. My bungalow (including woman) was $30 per month. I could tale three ladies to a decent restaraunt and have a $1 bill. I bought a tailored shirt for $5. It cost a nickle to go anywhere in the country on a bus, a dollar for a taxi.

      I raised my hand and asked about the differences in living costs and asked these three educated idiots how in the hell someone can live on $1000 a year in the US. Their answer? Live in a cardboard box and eat nothing but peanut butter.

      I stood up, called them idiots to their faces, and walked out and dropped the class, and replaced it with... hell, I don't remember, some other unscientific science like sociology or something.

      People just don't get it, and I suspect that someone who should but doesn't, like someone with a PhD in economics is being disingenuous for their own evil ends. I've had nothing but disdain for economists to this day, it was made even stronger when these economists espoused trickle down fairy dust.

      Oh, yeah... time showed that those idiotic economists were idiots, if common sense didn't.

    3. Re:That's it? by CompMD · · Score: 3, Funny

      That's true. 640k ought to be enough for anybody though.

  3. Off Topic: Facebook?! Really?! by TaoPhoenix · · Score: 4, Insightful

    (Rant)
    So Slashdot was bought by Dice, right? Have they done ANYTHING to improve it?

    I'm almost as sharp as a marble, but just look at this:

    Title: Google's Engineers Are Well Paid, Not Just Well Fed
    Summary: D H NG writes "According to a study by the career site Glassdoor, Google tops the list of tech companies in the salaries it pays to software engineers. Google paid its engineers an average base salary of $128,336, with Microsoft coming in second at $123,626. Apple, eBay, and Zynga rounded off the top 5."

    And it has a ... wait for it ... Facebook tag?

    Y'all yelled at me wen I said that Facebook is getting indirect advertising. And yet the Slashdot regulars haven't bothered to fork it since they instinctively know they can't get the critical mass to go to the forked version. So we continue to live with stuff like that.

    (/Rant)

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    1. Re:Off Topic: Facebook?! Really?! by thePowerOfGrayskull · · Score: 3, Informative

      Not to ruin a perfectly good rant, but if you take a look at that (such as it is) you see that Facebook is mentioned as being close behind Google in terms of overall salaries (not just engineering ).

    2. Re:Off Topic: Facebook?! Really?! by TheSpoom · · Score: 2

      You try to set up Slashcode in any reasonable way and get back to me. You know it hasn't been touched in like two years, right?

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    3. Re:Off Topic: Facebook?! Really?! by thePowerOfGrayskull · · Score: 2

      There's this thing called the "article". It is a strange and elusive beast, and many slashdotters miss it entirely.

  4. OK, but what about the hours? by Anonymous Coward · · Score: 5, Insightful

    In Germany for a slightly lower salary (let's say 100K) you work only 37 hrs a week (for real, not only on paper), have 30 days of paid vacation a year, an extensive social security and healthcare coverage provided by the government (you don't need any private insurance), and you cannot be fired "at will", but only for a fair reason. What about google, microsoft, and the US in general?

    Yesterday here on slashdot I read a scary post saying that astronomy Ph.D. students work 80 hrs a week, and reading the comments it seemed that it's considered "normal" in the US. I thought they were on another planet!

    1. Re:OK, but what about the hours? by paskie · · Score: 2

      What software companies in Germany have average salary around 100k?

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    2. Re:OK, but what about the hours? by acidfast7 · · Score: 4, Interesting

      It's also common for PhD students to work 80h/wk in Germany (at least at the reputable institutions ... Excellence Universities and Max-Planck Institutes) for example. Even students doing diplomarbeit work 60+ hr/wk.

      Also, one needs to compare net (netto) salaries. More the 50% of my gross (brutto) salaries is "comsumed" (for better rather than worse most of the time) in taxes (roughly 35% when income/old age/solidarity/church tax (which I opt-out of) /unemployment), mandatory health insurance (roughly 8%), mandatory pension (roughly 10%).

      Also, I wouldn't directly convert €1:$1.3 because with the cost of living and the VAT ... it's much closer to €1:$1 in real terms.

    3. Re:OK, but what about the hours? by somersault · · Score: 2

      Yeah because the US government is soooo much better. Only 100,000 rather than hundreds of thousands. And the US is such a great place to be in a minority group.

      --
      which is totally what she said
    4. Re:OK, but what about the hours? by timeOday · · Score: 3, Insightful

      They are just taking it away from you, running it through an expensive bureaucracy, and then handing back 1/4 of what they took

      There's no point trying to have this discussion with made-up numbers. The question is whether government administration in a given sector is more or less effective and efficient than private industry, so it's all about the numbers. And not just "golly that number sounds too big!"-type numbers (which is how many people comprehend medicare fraud, for example), but how those numbers compare to the alternative.

    5. Re:OK, but what about the hours? by acidfast7 · · Score: 2

      I doubt that in the US, most engineers are paying 35-40% federal income tax. In the states, the 33% bracket "starts" at $178k. Even if you factor in 7% state income tax, the 28% federal bracket starts at $85k, which means only 40k is taxed at 28% (based on the 120k median stated in the article.) I'd wager that the "average tax rate" on that income would be around 25% or so. Here, in Germany, I'm in the 42% bracket ... and pay about 35% total federal tax based on where the brackets divide. Adding the mandatory retirement, old-age insurance and health insurance contribution plus the reunitification tax and "church tax" ... it goes almost to 55% total deductions.

      However, the more interesting thing is how much is saved for retirement. My employer puts 9.9% gross in and I put 9.9% gross in (maybe only for the first €70k or so). I pay an extra 1.5% and the employer matches with 6.5%. Then I tend to save another 10% gross in a personal account. So roughly 38% of my gross is saved, not including savings for a house and standard banking.

  5. Re:Filter error: You can type more than that for y by Anonymous Coward · · Score: 3, Informative

    Technically, you don't understand the use of "rounded" here.

  6. Google Home by Anonymous Coward · · Score: 5, Funny

    Any engineer would loved to be paid 127,001

    1. Re:Google Home by din0 · · Score: 5, Funny

      That's for part-timers working from home

  7. Re:Filter error: You can type more than that for y by sycodon · · Score: 4, Funny

    2 is more rounded than 5, which is actually kind of squarish at the top. Yes, it is round at the bottom, but 2 has more rounding overall than the bottom of 5.

    Excuse me, time for another Vicodin.

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  8. Technically Microsoft offers the highest then.. by HerculesMO · · Score: 4, Insightful

    Because it's in Redmond. The other companies are in the Bay area largely, and that's the most expensive place to live per square foot in the country. Gas and everything else are more expensive too.

    --
    The price is always right if someone else is paying.
    1. Re:Technically Microsoft offers the highest then.. by HerculesMO · · Score: 2

      A 3 Bedroom in the Bay Area (my inlaws are out there) in a reasonable neighborhood is over 700k. It's ridiculous.

      Comparably, where I live, in the tristate area and working in NYC, I paid a little more than half that for a 4 bedroom house with two car garage and full basement. Taxes are higher, but with the price of the house, who cares? Plus, my schools are immensely better here as well. Cali schools suck, unless you live in Cupertino.. but the those houses are $1 million+.

      --
      The price is always right if someone else is paying.
  9. Nortel? by dlingman · · Score: 2

    Noticed that Nortel is in the list of companies they are reporting average salaries from. Might want to let them know about the whole bankruptcy/sell off everything thing that happened.

  10. Are they really well paid? by ltsmash · · Score: 5, Insightful

    I'm not so sure that these engineers are very well paid. Last year, Apple CEO Tim Cook was awarded $378 million in compensation. According to the above survey, the average software engineer at Apple makes $114,413 a year. In order to make the same amount as the CEO, the engineer would have to work 3300 years. So let's ask the question: When would the engineer have had to start working in order to have the same amount of money as the CEO? The engineer's first day of work would be 1300 years before Jesus of Nazareth would be born. And keep in mind this is an engineer. Consider junior level employees. According to an article by the New York Times, a salesman working at an Apple store makes about $11.25 an hour. He would make the same amount as the CEO in about 16 thousand years —- that would put his first day of work well into the stone age -- if you’re a creationist, his work time would be longer than the age of the universe.

    1. Re:Are they really well paid? by AnonyMouseCowWard · · Score: 2

      *sigh* Can people not believe outright the attention-whore headlines?

      Check this: As confirmed in an SEC filing last year, the shares in Cook’s renumeration package are set to vest at different times. Half of the 1m stock units – valued at $376m back in August 2011 – will vest (i.e. be passed on to Cook) in August 2016, with the remainder coming in August 2021, ten years after he assumed the role of CEO.

      What that means is that, because the Apple stock exploded in value, and his compensation is linked to it, if the stock stays the same for the next 10 years, he makes 378 millions, so 37.8 millions per year (well, + 900k in base salary). Factor in inflation, and it'll be less in current dollars. If he does a bad job and the company tanks, his compensation decreases. If Apple (the stock, hopefully linked to the company, as it should be over 10 years) does well, so does he. What's so wrong with that? Don't confuse the accounting with reality; you're _required_ to account for stock options in your SEC filings, it doesn't mean Apple actually paid that much or that Cook made that much in a year.

      Now of course you can still argue 38M$ is too much for a CEO, but in that regard, I don't think you should complain about Cook. He manages the largest company ever by market cap that _makes real products_, and earns 25 times less than a hedge fund manager that profited from the recession by moving money around (and yes, I only counted his 1 billion in pure compensation, not the 4 he made because he invested in himself).

  11. Not accurate, smaller companies pay more by aralin · · Score: 3, Informative

    This survey must be only talking about companies above certain size. Our Sillicon Valley startup has about 50 employees and the average engineering salaries are north of $150,000. Large companies like Google actually don't have to pay that much, because the hours are more reasonable. I know there are other companies too that pay more than Google in the area.

    --
    If programs would be read like poetry, most programmers would be Vogons.
    1. Re:Not accurate, smaller companies pay more by MisterSquid · · Score: 3, Interesting

      Our Sillicon Valley startup has about 50 employees and the average engineering salaries are north of $150,000.

      I suppose there are some start-ups that do pay developers the value of the labor, but my own experience is a bit different in that it was more stereotypical of Silicon-Valley startup compensation packages. That is, my salary was shamefully low (I was new to the profession), just about unlivable for the Bay Area, and was offset with a very accelerated stock options plan.

      Even though the company was purchased and I ended up with some real, live tradable stock, the final calculation (dividing the value of my options over the length of my employment) revealed a still cripplingly low annual salary (~75K/year). So, unless your startup is going to hit it BIG big, direct compensation may be a better deal than equity.

      Good on your company for paying their workers the full(er) value of the labor in cash.

      --
      blog
  12. Not the whole story... by erp_consultant · · Score: 3, Informative

    The article doesn't mention but I suspect that is base salary only. Google is known to have a very good benefits package (at least by today's standards). There may be a stock and/or bonus component that is not included. I find it hard to believe that 128K is the total comp for an engineer at Google.

    Having said all that, my experience is that salaries in CA are far too low given the cost of living there. Where I live (it's a large city, not out in the sticks) you can buy a nice house for 250-300K. Same house in Silicon Valley or LA? Well over a million and that's being conservative. Taxes are also much higher in CA. So you would think that salaries are 4x as high there as they are here but they are almost the same.

    Sure, CA is really nice. I love going there. Great weather, all that. But living there? Forget it.

  13. That sounds about normal by neurovish · · Score: 4, Interesting

    $128,336 in San Francisco equates to about $65k when cost of living is adjusted to the US average (specifically Raleigh, NC...it was the most average I could think of and is pretty close). I'm sure there is some flexibility in those numbers, but I don't know of anywhere in the bay area that isn't well above the national average.

    1. Re:That sounds about normal by afgam28 · · Score: 3, Insightful

      That only makes sense if you assume that Google engineers live paycheck to paycheck.

      What's more likely is that they save a certain percentage of their $128k, and spend it in a lower cost area once they've left their job in Mountain View.

  14. PhD's Google Employs by kye4u · · Score: 5, Insightful

    Considering the number of Phd's and M.S. graduates that Google employs versus Microsoft, it stands to reason that the average salary would be higher. As others have mentioned, when you factor cost of living, hours worked, and the degree employees hold, 128K doesn't go very far. Also in Washington State (where Microsoft is located), there is no state tax

    When the median home price in Mountain View is over a million and the cost for a decent 2 bed/bath apartment is 3k/month, your dollar doesn't go to far.

  15. still not bad same as the 1990's by Vince6791 · · Score: 3

    Oh please, even for California that is a lot of money. With taxes taken out you get about $5700 a month, about $66.80 an hour gross $35.62 an hour net. Your telling me you can't find an apartment for $1400 - $2000 anywhere in California. The highest I ever got was $18(working 9-5, actually 7-6, 7-9, 7-12, 6-9, time and half only) an hour gross comes to about $11.63 an hour net, $1860 a month. NY taxes are freaking high. You can get a shitty roach infested single apartment here in ny queens, brooklyn, bronx for $1100-1300 no utilities included, 2 bedroom $1800-$2000 in queens. Basement apartments are now $900 a month and still rising. Yes, expenses are up, wages and salaries are down. In the 1990's an engineer with a E.E. got started with $120k a year. These days hard work and experience means shit, but if you have a degree with no experience and not a very hard worker you get paid like a king.

  16. Salary Inflation by MaWeiTao · · Score: 4, Interesting

    I think a very important caveat here is that Glassdoor is a job search site. And like every job search site I've ever seen who posts average or median salaries they tend to inflate them. They'll claim the average income for a designer in NYC, for example, is $100k a year. Then you look at the job listings for the same position and you're lucky if they break $70k.

    Their entire business model is based on getting people to look for work, so of course they're going to do whatever they can to make you believe everyone is earning more than you are.