On: Buffer Layoffs

[nilkn]

The $155k salary might be due to the transparency, but could it also be due to a simple inability to pay developers $300k+? That's well over double the CEO's salary. I think it's clear they simply don't have the revenue and cash reserves to pay developers that kind of money. I suspect you'll find this to be true at a lot of smaller startups that rely on actually making money instead of fundraising.

[bambax → nilkn]

Also, Buffer is entirely remote. I bet many people are willing to take a big pay cut if they don't have to commute to an office building every day (and of course, other people like office life -- but remote positions are rare, so it's normal that they're more "expensive" for employees who really want them).

[s_kilk → bambax]

Also, if you're working remotely from a more affordable location you may not need as much salary in order to live a very comfortable life.

I think our expectations are skewed by the crippling cost of living in SF, New York, London, etc.

[RussianCow → s_kilk]

Buffer actually adjusts the salary based on location, so this is (at least partially) taken into account.

[a13n → nilkn]

The salary is peanuts compared to what that CEO gets compensated.

[jsprogrammer → nilkn]

The latest model I have seen showed founders making about one-third of top-level employees.

[bduerst → jsprogrammer]

In take-home income right? They still have sizeable ownership of the company and vesting.

[jsprogrammer → bduerst]

Yes, they are willing to forego significant salary because they will control most of the profits.

[arctor → jsprogrammer]

You mean "hypothetical profits". There's a distinct possibility of there being no profits at all.

[hrayr → arctor]

High risk, high reward.

[icedchai → jsprogrammer]

Profits? You must be joking.

[nedwin → icedchai]

They recently took around $3m off the table if I recall correctly.

[nedwin → nedwin]

It was $2m in 2014