How can companies with a huge amount of debt and losing money every year pay such high TC?

Question

For example, Lyft and Uber aren't making a dime, but have some of the highest base salaries and stock options plans in the field. The higher TC is getting more engineers to go there, but it's a double edged sword where it just pushes them farther and farther back from profitability.

fzerofox · Accepted Answer

It's technically not their money AND they get to live off of it. Not a bad deal tbh lol.

19g6tl431xwd4 · Answer

On paper, compensation decisions should be a matter of marginal profits, not total profits. Eg: does paying 50k more lead to us getting more than 50k in return? Here are two scenarios:Company A has tons of profits. However, they don't primarily sell software. Their engineering problems are simple and mostly require maintenance work. Paying an extra 50k has a low ROI, so they won't pay extra.Company B is not profitable. However, they're a software company and are growing quickly. They get a lot out of new engineers. Every new engineer puts them closer to profitability. Therefore, they pay well above market price to hire higher quantities of high-quality engineers.

HimQok · Answer

The question is, can we get the best talent at x price before companies a, b, and c? It's not sustainable at all and as you can see, companies experienced record growth, salaries are at an all-time high AND we now have layoffs. Companies need people to build and they will also shed workers once their role in that phase of building has been satisfied. Just the nature of the beast.

How can companies with a huge amount of debt and losing money every year pay such high TC?

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