Google Is Now a 'Tier Two' Employer, Says Recent Comp-Sci Grad
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Not really. You can make millions if you're a founder... As a regular employee you have more chances to make millions by going to Vegas than with stock options.
Brother was (fresh out of college) employee 20 at a company that IPO'd > $1 billion, and he got about $150k out of his options from 3 years of work. You have to get lucky to find a company IPOing enough to make you a millionaire.
I mean, the whole argument about "bigger money" at startups is more like a myth.
http://www.businessinsider.com/twitter-ipo-created-1600-mill...
The kids who are going to be successful doing startups with no work experience likely dropped out to join an accelerator before they graduated.
For 1K employees each becoming millionaires, their holdings in the company would need to be worth at least $1B, and if the IPO is 50% of the company, that means the company must be worth at least $2B. That's not a whole lot of companies, and I'm being deliberately conservative in my numbers to give you the benefit of the doubt.
I can't easily quantify the coverage although I've been thinking about it. Of the several hundred people I felt I knew reasonably well at Intel and Sun through the folks I've interacted with at Xerox and Tandem where my wife worked. LinkedIn's mapping function gives me pretty good coverage but the simple sample of is/is-not retired isn't a good signal.
But the other part which isn't obvious is that a number of people at Sun (for example) were not millionaires when the company IPO'd but became millionaires as the stock increased in value. In a case which is perhaps unique but not unprecedented, the Sun stock I purchased as part of the employee purchase program (basically 10% of my salary buying stock at 85% of the fair market value every 6 months) over 10 years was worth more than a million dollars in 1999[1] Similarly for folks who "only" had $500K worth of stock when Facebook IPO'd that same stock would be > $1.5M today.
The dynamic (which was also well documented in Geoffrey Moore's books) is that companies that make it to an IPO and grow, add value over time and their relative value at a size of <= 1000 employees, to their size at 10,000 employees makes the equity compensation of those 1000 employees a lot more valuable than the later employees got.
And to reiterate the data is out there but not well collated. I'll have to do some more digging to figure out if we can quantify this more precisely.
[1] Not that I still had it in 1999 but there were folks who did.
It's a long road to go from options to real money. Something I didn't realized before joining a startup. There are many points at which you could be locked in if the company is sold or other events happen.
Talking about top CS schools/going to Stanford is really irrelevant. I went to Carleton College, which has a nice little CS department but not really well-known, and got a liberal arts education. Because I did some open-source work and maybe because of some academic projects, I was able to get lots of interviews and offers, all in the same range as people are discussing today. All Stanford does at a company like Google is get your foot in the door--small, poorly run startups may hire on that basis, but that's it.
My one piece of advice for people who want to get into the tech industry: Choose one open-source project and contribute to it over a long period of time (ideally starting in high school, but never too late). The short time span of college courses and lack of large projects (a semester is not long) means that you can't really develop the skills that you need to be effective by that alone. Large, open-source projects give you real experience in structuring code to be maintainable, working with others and receiving feedback, and understanding and changing existing code that other people wrote. It might also get you some nice internal references.
He then says that other more prestigious startups are paying more and allow employees to be on the ground floor and have a bigger impact - I'm curious to see a list of these companies.
I also wonder if "fresh out of grad school" versus "worked at Google for 2 years + grad school" gets you into these startups. I still believe seeing Google on your resume gets you a second look.
A very few recent grads may be able to make major contributions. How do you know if you're one of them?
And the unit is... ?
In 2005 I saw people lining up for Google T-shirts and feeling cool when they had invites they could hand out for new Google products. Wave and Gmail people immediately jumped me for invites and then when I was out my friends for invites. Inbox? Nobody cared.
I eventually left the startup space to see what the rest of the world is like, and I can tell you that the money is much better out here.
He is not alone though - compensation director at Box tried to convince me that higher salary is significantly better than lower salary + bonus because of higher taxes on bonus.
That said, higher base salary is usually better than lower salary + bonus because your annual raises are larger on a higher base. Variable comp also just kind of sucks period - you get a big windfall at some point in the year, but you can't plan for it because you don't know how big it will be.
With that, I agree that having higher guaranteed salary is better than having the same expected variable comp but the comment was about taxes.
The problem I see is big companies, and startups is the amount time they require their employees to work, which is normally over 40 hours and can be upwards of 60 hours average per week.
Paying 100k at 40 hours a week is $48 an hour.
Paying 100k at 60 hours a week is $32 an hour.
I work with undergrads always tell my best students to avoid Facebook, Amazon, Microsoft, Google companies. Longer hours means more stress. Big companies get employees to work longer by offering food and games at work. I tell them find a company that does cool stuff and only asks for 40 hours a week. I tell them I know working for interesting research companies getting paid $80k and working ~30 hours a week. Which is getting paid more per hour than the person working at a company earning 100k and doing 60 hours per week.
I checked up and Google isn't too bad from what I can see online. Some say 40[1] Others say 50-60 [2] Places like Facebook, Amazon, Microsoft are worse places to work.
[1] http://mashable.com/2012/05/10/reddit-users-google/
[2] http://www.quora.com/How-many-hours-a-day-do-Google-employee...
I think the point is that it's not an efficient use of their skills.
I guess I'm assuming that said PhD isn't doing nothing but unit tests all data, but rather writing unit tests for their code.
Good unit tests are hard, often harder than product code. Smarts and experience help.