F*ck you, pay me
How much would you pay to buy a company? DCF is the present value of expected future CFs? In a vacuum, its how you'd purchase a company, no? So why is my salary based on current years of experience and how said company benchmarks according to what recruiters perceive as market.
Do yourself a favor and stop being so transparent with recruiters. They talk in confidence to people and that information is relayed to companies to create a comp benchmark band. Allows companies to fixed your salary to a target range. Exec comp has grown significantly in recent years yet the rank & file is flat adj for inflation.
While I get your sentiment, your analogy kinda sucks. When you hire an employee, you don't get any rights over them. If a company hired you and got all rights to basically own you in perpetuity, then yes, they'd value you based on future value.
One nice thing about finance is the fact you have more ability to demand higher pay due to direct contribution. If you make a firm X amount, you can say you want X*Y% dollars, and if they don't give it to you then you'll walk. Even supposedly very meritocratic industries like tech operate very differently from this.
Naive sentiment. You discount how greedy every PM is. Truth is that 95% of PMs will skim juniors despite value delivered. PnL is very real and can be pointed to but their interest are opposed to yours. Not happy then walk? Wish it was that simple but can’t do it more than once.
We live in a capitalist society. Everyone is working to maximize their own value. Businesses, bosses, and you. Everyone wants the best deal. If you're not being appropriately compensated, you can walk, but oftentimes the threat of walking can be a big enough motivator. And why can't you walk more than once? Acting like having 5 entries on a linkedin page is a foreign idea. People walk all the time from crappy job.
Countless entries on this in WSO. Staying power is valued. Consecutive short stints not valued by market, despite how justified the rationale.
If you're making consecutive short stints, it means your ability to evaluate the companies and teams you go to work for is lacking. At most, you should need to be moving around every couple years due to lower pay. Firms pay you just enough to stay around, not more. If they think you'll leave, they'll fight to keep you. Countless entries of that on WSO too, of people threatening a quit and all of a sudden the firm can offer a bigger bonus. If you're trying to argue that there's basically nothing you can do, then wtf do you even want people to do in these instances?
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