Thursday, January 09, 2014

Open Salaries - Just what are you worth?

Fascinating to read how social media startup Buffer has decided to be totally transparent showing individual salaries. Builds my trust in these guys as group that practice what it preaches.


The salary formula

Salary = job type X seniority X experience + location (+ $10K if salary choice)
  • job type = base
  • happiness hero = $45,000
  • content crafter = $50,000
  • engineer = $60,000
  • designer = $60,000
  • Operations officer base = $70,000
  • Executive officer base = $75,000
  • seniority = base multiplier
  • Senior + 5% base and 3k/$m revenue
  • Lead +7% base and 4k/$m revenue
  • VP + 10% and 6k/$m revenue
  • C-level +20% and 8k/$m revenue
  • COO +20% and 10k/$m revenue
  • CEO + 20% and 12k/$m revenue
  • experience = multiplier
  • Master: 1.3X
  • Advanced: 1.2X
  • Intermediate: 1.1X
  • Junior: 1X
  • location = additional
  • A: +$22K (e.g. San Francisco, Hong Kong, Sydney, London, Paris, New York)
  • B: +$12K (e.g. Nashville, Birmingham, Vienna, Austin, Vegas, Tel Aviv)
  • C: +$6K (e.g. Talinn, Warsaw, Bucharest, Santiago)
  • D: +$0K (e.g. Manila, Delhi, Hanoi)
  • equity / salary choice
  • you get a choice of more equity or more salary, if you choose salary, you get +$10K

Buffer Bootcamp: 45 day Freelance period

For the freelance 2 month period for new hires, we take the +10K (salary over equity) option and then translate that into a daily rate. At the end of 2 months, the person can choose to reduce salary for more equity.

Current Salaries

  • Joel (CEO)= $158,800 (75k Executive Officer base + 20%, + 12k/$m revenue, 1.2X, +22k,)
  • Leo (COO) = $146,800 (70k Operations Officer base + 20%, + 10k/$m revenue, 1.2X, +22k)
  • Sunil (CTO)= $137,600 (engineer + 20% + 8k/$m revenue, 1.2X, +22K, +10K)
  • Carolyn (CHO) = $106,000 (happiness +20% +8k/$m revenue, 1.2X, +22K)
  • Andy (Senior iOS Engineer) = $107,900 ($60,000 + 5% + 2*$3k, X 1.1 + 22K + 10K)
  • Michelle (Growth Engineer) = $98,000 (engineer, 1.1X, +22K, +10K)
  • ├ůsa (Senior Happiness Hero) = $85,900 ($45,000 + 5% + 2*$3k, X 1.2 + 22K)
  • Colin (Senior Backend Engineer) = $104,800 ($60,000 +5% + 2*$3k, X 1.2 + 12K + 10K)
  • Belle (Content Crafter) = $82,000 (content crafter, 1.2x, +12K, +10K) * 0.8 (Belle works 4 days a week)
  • Brian (Designer) = $94,000 (designer, 1.2x, +12k, +10k)
  • Matt (Android Engineer) = $94,000 (engineer, 1.2x, +12k, +10k)
  • BMR (Happiness Hero) = $76,000 (happiness hero, 1.2x, +12k, +10k)
  • Niel (Frontend Engineer) = $88,000 (engineer, 1.2x, +6k, +10k)
Team members in the 45 day Buffer bootcamp period
  • Mary (Happiness Hero) = $70,000 (happiness hero, 1.2x, +6k, +10k)
  • Adam (Happiness Hero) = $76,000 (happiness hero, 1.2x, +12k, +10k)
  • Toby (Backend Engineer)  = $94,000 (engineer, 1.2x, +12k, +10k)
  • Zach (Backend Engineer) = $94,000 (engineer, 1.2x, +12k, +10k)
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