company offer: move outside expensive city & take 10% paycut for $20,000 bonus

[Demovictory9]

As major Bay Area tech companies like Reddit, Salesforce and Dropbox all announced variations of a permanent remote work program amid the COVID-19 pandemic, others were experimenting with different ways to shift their workforce.

In September 2020, Stripe offered its employees a unique proposition — move outside the Bay Area and receive a $20,000 bonus. But all attractive offers come with a catch, and this one was a 10% pay cut.


Stripe co-founder and president John Collison recently told Bloomberg TV that many employees took advantage of the offer. “We saw pretty major uptake,” he told the television station. “There were a lot of people where they took advantage of all the remote working that was going on last year to be able to move to be closer to their families, to somewhere they wanted to move previously.”

Collison did not provide an exact number of employees that took the deal in the interview. It wasn’t just Bay Area employees that were given the opportunity, though. The company, which has headquarters in San Francisco and Dublin, said it applied to all high-cost cities.

https://www.sfgate.com/bayarea/article/Stripe-employees-move-outside-sf-bonus-paycut-16255820.php

[Sherman A1]

1. It will be interesting to see in the next few years

The winners and losers of the post pandemic societal shifts.

[TheFarseer]

2. Part of the reason why

Housing is unaffordable everywhere in the country and not just Bay Area and a few other places. I can’t compete with someone making a trillion dollars with a Silicon Valley job. Also, I can’t compete with Black Rock Capital, but that’s another rant.

[MissB]

4. I haven't seen much posted on DU about Black Rock Capital

Maybe I've missed it, but I'd urge you to start an OP about them.

[luckone]

5. +1

[Demovictory9]

6. Tell us about black eock capitol

[TheFarseer]

8. I read on businessinsider

That Black Rock Capital is buying up houses - I forget if it was just certain US markets or which markets - at prices 20-50% above asking prices and renting them out. I noticed there was a massive campaign to discredit this report afterwards so you might want to do your own research.

[fescuerescue]

3. That's a pretty good deal in most cases

The $20k covers the moving cost.

And the standard of living is going to up quite a bit, living outside the ultra high cost areas. Even though areas like that pay more, they never pay enough to make up the difference.

I had a chance a few times to move to the Bay Area. But the increased pay has NEVER been enough to cover the increased cost of living.

I did the math once. Moving from the Midwest to the Bay Area, I would need about double my then pay rate. But generally only about 30% more was on the table. That was 20 years ago. I imagine the situation is worse now.

[greenjar_01]

7. This will become effective when we develop the technology to ship good sushi