[jt2190]

> Tech companies… decide which salary percentile they want to compete at. Do they want to compete at the top of the band (95 - 100 percentile) or at 75th percentile?

> … It's a vanity metric for the company. Facebook could choose Cisco as a peer and pay way less, but they don't because they can afford to.

“They can afford to” is what lets them offer high compensation relative to other companies. The “choice” they make is to fill their hiring funnel with extremely motivated candidates, and this lets them pick and choose from that labor pool.

Many companies choose to not fill their hiring funnel like this.

The reasons for wanting a large pipeline were explained well in another article, but in short: These companies are competing in a global market and need “best-of-breed” solutions.

[tracker1]

Agreed, I definitely don't think it's simply a vanity metric. What sucks is when you're somewhere between the typical market salary and the top FAANG pay scale. It's a very long/hard road to jump up when you're a little older (49), but on the flip side, seeing a 25-40% pay drop if you need to work and need something sooner than later is also a hard position to be in.

[leapingdog]

My silicon valley based employer did same pay bands throughout the UK but people in my regional office were offered roles in lower bands for their skill set compared to London. It was more money for less responsibility compared to local companies so not a hard decision.