According to an article at Pando Daily, salaries for engineers in Silicon Valley are on the rise. Farhad Manjoo credits Facebook with breaking the ice on the no-poaching agreements which have historically been in place between the largest tech firms in the valley. While a salary in the $100k-$150k range sounds quite high, when put in context of the cost of living in those areas, it’s actually rather meager. When you also factor in the astronomical profits of some of those companies, the wages being earned by the engineers building those products seem even smaller:
Last year Google booked nearly $10 billion in profits. Apple made close to $26 billion. None of those billions would have been possible without legions of engineers and designers, people who were systematically screwed out of bigger paychecks for years. They deserve every penny coming to them.
Mr. Manjoo makes the case that because Facebook has been paying higher for engineers than the typical going rate in Silicon Valley, and has not signed on to the no-poaching agreement the other large tech firms have, they have raised the bar on salary:
Thanks to Facebook’s pre-IPO allure—and, to a lesser extent, to that of Twitter, Zynga, and LinkedIn—salaries are rising all over the place. Google was forced to raise wages by 10 percent last year, and I’ve heard that other big players have had to write bigger checks as well.
Let’s hope this trend continues.