[jefftk]

My understanding is that Google tries to pay towards the top of their local market, to get the best talent without diminishing returns. This means a lot of money in the Bay Area, but much less in, say, London, because the market for software engineers is so much weaker there.

(I work at Google, in Boston, but don't know details about how comp is figured)

[flaie]

I think you are right and yet living in London is really expensive also. You get less for your expertise.

[jefftk]

Google pay is based on the market, not cost of living. So London is not nearly as good a place to be as the Bay, or even Pittsburgh (cheap housing, high programmer wages). I like how this works out with Boston pretty well!