Name: Competitive Pay
Uploaded: 2025-11-21T20:09:21+00:00
Duration: 3 min 12 s
Description: Big Tech companies are widely known for offering extremely competitive compensation packages, which is often one of the

Competitive Pay

Big Tech companies are widely known for offering extremely competitive compensation packages, which is often one of the primary reasons engineers aim to work at these firms. This segment outlines both personal anecdotes and structural strategies that explain why compensation in Big Tech is so high.

- **Top-Tier Compensation Strategy**: Meta’s compensation goal, for example, is to pay in the 90th percentile—more than 90% of other tech companies—making total compensation significantly higher for engineers who make the transition into Big Tech.

- **Drastic Pay Increases**: It's common for engineers switching from smaller or non-FANG companies to experience dramatic increases in pay—often as much as 50–100%. Even the speaker was surprised by the magnitude of the raise upon joining Meta.

- **High Cost of Living Justification**: These lucrative salaries help offset the cost of living in expensive tech hubs like Silicon Valley, New York City, and Seattle, where basic housing or property ownership can be out of reach without this level of income.

- **Historical Offers Data**: In 2014, new grad offers ranged from $164K to $270K annually from Big Tech firms—Google, Facebook, and others. Salaries have only increased since then, due to ongoing talent wars and inflation.

- **Prestige + Pay Combo**: Many engineers underestimate the financial upside of Big Tech and initially assume a 20–30% increase is generous. In reality, the combination of prestige and substantial pay is a powerful draw.

Big Tech companies are widely known for offering extremely competitive compensation packages, which is often one of the 