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So i want to know how finances work for tech companies. There are a lot of big numbers that come up when we talk about a company's finances, but i don't understand why the tech people are so down in the ladder, or why those no.s are not associated with the tech teams
Like here's a statement :

"company x is valuable at $42billion , their annual turnover is $5billion. With a profit of $2billion. The ceo has a worth of $1.4billion and company's share are selling at $1500 per share. Person a,b,c of the company hold's 2,3,4% in stocks and the investor sequoia capital is thinking of providing an investment of $25million"

This is a hypothetical company, but if this company is also providing its members of tech team @$20-200k per annum (depending upon seniority), then is it relatively too less? I mean the company is playing with numbers in millions, people are being attributed with billions and yet a developer has to satisfy in those numbers.

Is it because we are being paid by the no. Of hours/time? Because i want to know what other ways are there in which those managers and ceos and investors are being paid? I have heard far too many stories about devs leaving their jobs and starting businesses, and I don't think its only because their boss was a dick

Comments
  • 2
    those numbers aren't liquid, they're the approximated worth of the company were it to be sold. Even then its still a matter of finding someone to pay that much so its not ever really an exact exchange.

    Where it really comes into play is when the company wants to take out a loan, the bank will look at both their net worth along with what their actual revenue stream which can be drastically different dependent upon salaries, expenses and former loans not quite paid back in full.
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    Dunno, Google and Amazon here are offering $400k, $300k total compensation in some cases. Executive salaries tend to be on a different scale. Senior directors and executive vice presidents might make more, but they become very performance based.

    The industry as a whole, the rates of devs are driven down by the collusion of shortsighted business leadership and greedy contracting firms. That's all there is to it really; if they commoditize dev labor, they hold the power. With plenty of people willing to slave for a shot at a green card, or for a chance to change careers, skill becomes noise to the business decision making process in our anarcho-capitalist horror show of an economy.
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    @SortOfTested excutive salaries are high, sure, but there not 1.4billion high. Shares of the company is how that number gets up there, and it's still just an estimate, mostly used to leverage credit or just collect dividends off of. The actual cash out value is never going to be that unless they happen to catch the market in a good mood.

    That's why it's so easy for a lot of them to go bankrupt. They max out there credit based on that figure and what they can just afford to pay back on their monthly salary, then when it all turns south, their stocks are worthless and they have no more incoming salary to pay back what they've already borrowed.
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