Salaries for engineers in Silicon Valley have never been higher, but they're still not high enough, argues Farhad Manjoo in PandoDaily. Even with starting salaries at around $100,000 and lavish perks like on-site laundry service, the pay of rank-and-file engineers isn't commensurate to the value they bring to companies like Google, which earned almost $10 billion in profits last year. Not to mention that $100,000 doesn't go as far in Palo Alto, Calif., where the median home price is around $1 million, as it does in Sheboygan, Wisc.
It's no coincidence that employee salaries haven't risen at the same rate as their employer's profits, Manjoo argues. From 2005 through 2010, companies like Adobe, Apple and Google allegedly made agreements not to poach one another's employees or become engaged in bidding wars. By limiting the ability of employees to seek higher salaries with competing companies, Apple and others kept wages artificially low, a group of former tech employees argues in a civil lawsuit that could become a class-action suit.
These allegations have been around for a while, with the Department of Justice reaching an agreement with the companies, which also include Intel and Intuit, that they refrain from such agreements in the future. The companies were not required to admit wrongdoing. But the civil lawsuit is forcing email disclosures from some of Silicon Valley's elite firms. The disclosures have already revealed missives written by Google's Eric Schmidt and Intel's Paul Otellini that detail the no-poaching policies. If the suit goes forward, it could mean hundreds of millions of dollars in damages for tens of thousands of workers. But it's also likely to reveal more about the way that hiring and pay packages in Silicon Valley really work.
Money Men (FINS)
Landing a job in venture capital is harder than it's been in years, but if you do, the financial upside can be lucrative. Here's the scoop on the 60-hour work weeks and endless power lunches.
Cutting Down (Kansas City Star)
A recently introduced Senate bill would expand the numbers and types of IT workers who are not legally entitled to overtime pay. Companies like IBM and Intel are pushing for the legislative change, which would include jobs like securing and debugging computer systems.
Replacement (FINS via WSJ)
Micron Technology Inc. has named a replacement for Steve R. Appleton, the chief executive whose sudden death last week stunned the technology world. Mark Durcan will take over as the company's new CEO and will join the company's board of directors.
Poach (VentureBeat)
Google has hired Apple's Simon Prakash to work on a "secret project," according to a report. Prakash is an eight-year Apple veteran who most recently worked as senior director of product integrity, meaning he was a high level quality assurance professional. A Google spokesman confirmed that Prakash has been hired.
Outlandish (NYT)
Don't let anyone tell you that there are no status symbols in the world of tech. Zany socks --the brighter the colors and more unusual the patterns, the better -- are how the Silicon Valley elite signal that they've arrived.
Profile In Precocity (San Jose Mercury News)
If your appetite for all things Facebook hasn't been sated, here's an interesting look at Mark Zuckerberg. Since day one, people who've known him say, the 27-year-old wunderkind has always been focused, arrogant and scary smart.
Silicon Carpet (Business Insider)
Glitz, glamor and IPO dreams. This year's Crunchies, the Academy Awards of technology, saw executives like LinkedIn's Jeff Weiner and Twitter's Jack Dorsey grace the stage.
Data Driven (Bloomberg)
The exponential increase in data flowing across the Internet is set to make 2012 an even bigger year for mergers and acquisitions than 2011 was. In other words, it's a good time to be working in the data storage, analytics and security business.
Leader (NYT)
Facebook Chief Operating Officer Sheryl Sandberg is set to become one of the world's richest people, not to mention one of the few self-made women billionaires.
Buzz Around the Office
Five young accordion players from the Kum Song School in Pyongyang, North Korea, performing A-ha's "Take on Me."
List of the Day: How to Talk Your Way Into a Job
When you're looking for a job, what you say is only as important as how you say it.
1. Present yourself as optimistic and positive.
2. Show you are willing to learn and improve.
3. Smile – everyone likes to work with happy people.
(Source: Glassdoor.com)
