How is it possible for Microsoft to pay so much less than its competitors?

Sep 14, 2020 48 Comments

I am currently the lowest eng level (SWE) at LinkedIn. According to levels.fyi, this maps to Microsoft’s L59/L60.

My TC is 300K with 3 YOE. Again, according to levels.fyi, this is as much as Microsoft’s Principal SDEs (L65) make with 20+ YOE.

My first question is: How is this possible? How can Microsoft pay so much less than other top tech companies? Do they just hire worse engineers? Does Washington state tax/CoL make that much of a difference?

My second question is: What does this mean? Is this proof that it’s possible to build a trillion dollar tech company with mediocre engineers? Is this because of Microsoft’s anticompetitive practices? Will their salaries eventually catch up, or will their competitors’ salaries drop?

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TOP 48 Comments
  • Amazon / Eng
    rustacean

    Go to company page Amazon Eng

    PRE
    Facebook, Google
    rustacean
    My question is: wtf does LinkedIn do that the parent company thinks those engineers are more valuable?

    Msft: Windows, VS, vscode, edge, bing, App Store, WPF, UWP, Xamarin, .NET platforms/languages, ...
    LinkedIn: Fb status feed + job board + Lynda.com

    Like if it’s me, I’m saying the former category deserves a lot more comp than the latter. 🤷‍♀️
    Sep 14, 2020 4
    • LinkedIn / Eng
      cheeseit

      Go to company page LinkedIn Eng

      cheeseit
      Many companies pay Seattle engineers the same as Bay Area/NYC engineers.
      Sep 15, 2020
    • Amazon / Eng
      rustacean

      Go to company page Amazon Eng

      PRE
      Facebook, Google
      rustacean
      The pay gap difference from LI - Msft is quite a bit larger than state income tax. Taking 87.7% (-12.3%) of $250k (op’s pre-growth tc) still leaves $219k. levels.fyi seems to indicate L60s are making ~$170k on the high end. $49k post-tax difference is more than a 25% raise to go from msft to LI at the same level.
      Sep 15, 2020
  • Apple
    87oi

    Go to company page Apple

    87oi
    MS is not competing with other tech giants. It has already established its user base (literally all government and most offices around the world use windows and office products and won't be willing to switch anytime soon). So it has its user base without competition and it's profitable (not burning money). Why would they pay more if the can do what they want with lower pay (or as you put it mediocre devs)?
    Sep 14, 2020 5
  • 300k is not a swe salary. If you were down leveled you'll get 250k at the maximum as a swe
    Sep 14, 2020 2
  • What would be your TC after the peak? What's the breakup of your TC?
    Sep 14, 2020 7
    • Don’t waste your time on this MS dude, he’s just jealous.

      Take a look at levels.fyi. Entry SWE at LinkedIn is a bit higher than senior at MS
      Sep 14, 2020
    • Hey!!! I second you on the pay front. MS sucks full blown... But you started with your 300k as a reference...then it's normal for ppl to ask you for a breakup.
      Sep 14, 2020
  • Microsoft / Eng
    Dijun

    Go to company page Microsoft Eng

    Dijun
    OP what is your base salary? Are you planning to jump company to company every few years? Your TC is high due to stock appreciation right? My guess is MS has a lot of employees that decide to stay after the 4 years. So this data feeds into what Microsoft needs to pay to new hires.
    Sep 14, 2020 0