80% of the money we spent on their compensation was not going to travel. Copy-pasting comments from the thread over here where this number was originally said:
″
spend >80% of their income as travel
Where are you getting that number from? It was a mix of rent, food, medical, productivity tools, etc. Some quick math I did shows that only 6% of the money we spent on her was for travel.
Total spent on her when she was compensated with room, board, travel, and medical + stipend: 17,174
990/17174 = 6%
(I didn’t include the flight from the Bahamas to London because that was when she was picking her own cash salary, rather than the all expenses paid + stipend. We’d just already booked it before she’d switched to cash.
If you want to include that, it’s hard, because then should we include the cash comp or not?)
It’s also important to emphasize that even though compensation is not the same as purely cash pay, she signed up for the compensation package that she got. When she asked to get compensated purely in cash, we said yes.
So it’s not like she was forced to spend money in a certain way. It’s like if you signed up for a fellowship that covered room and board and a stipend. Later, you decide that you want to spend the money differently, so you talk to the person in charge and they say it’s fine for you to be purely compensated with cash. There’s no forcing you at any point in that process to spend your money in a particular way.
Second follow up comment:
most people in Alice or Chloe’s shoes would’ve preferred to be paid the equivalent cash amount
Alice did, and then when she asked she got it. Chloe never requested this.
It’s really important that they signed up for this. If we had promised them $75,000 cash salary and then instead gave them this compensation package, I think that is indeed unethical and unfair. However if they knew what they were signing up for and it was clearly communicated and they said yes, then that is totally fine and an informed choice they made.
I don’t see an alternative. I can’t read minds. I couldn’t change their comp package if I didn’t know they wanted to. And when I did know, I said yes.
If they chose this compensation package when they could have applied for other jobs with a more standard package or could have asked for a standard package, then they did indeed choose this compensation package.
Additionally, we need to be able to distinguish between “this was what they chose” and “this was what they would have preferred if they could have had anything in the world right away without having to ask”.
Like, imagine I applied the same standards to funders. “I asked for $50,000 and they gave me $50,000, but I would have preferred $75,000. Yes, I didn’t ask for $75,000, but most people in my shoes would prefer $75,000 over $50,000.” (Or replace with whatever numbers make most sense to you)
This follows the same structure of the argument “Alice and Chloe signed up for a all-expenses-paid + stipend compensation package and they got that, but they would have preferred a cash salary of a similar value to the comp package. Yes, they didn’t ask for that, but most people in their shoes would prefer a cash salary over the other comp package.”
Or maybe a better analogy is a charity applying for funding and the grantmaker donates but with earmarked funds. All orgs would prefer unearmarked funds (flexible funds are more useful than earmarked ones), but that doesn’t mean it’s unethical for a donor to earmark their donations.
Is rent a travel expense?
Counting rent while traveling if this was a part-time travel experience seems reasonable. For example, if they usually live in the Bay area and they’re expected to travel to London for EAG, the cost of the Airbnb in London is clearly a travel expense.
However, if they are always traveling and they do not have a permanent place anywhere, that does not seem like a travel expense but rather just regular rent. Neither of them had a permanent place. Alice had been nomadic before she even met us. Counting that as a travel expense in this context doesn’t make sense and will lead to people being misled.
Think about it. Otherwise then, for the last 4 years I have paid zero rent? Clearly, if you are a full-time nomad then airbnbs are just rent, not travel.
How to calculate total compensation
I quickly googled “when people describe a compensation package do they usually include medical” and the first result said:
“Health Insurance Benefits are a huge piece of your overall compensation package. This can include Medical, Dental, Vision, as well as HSA/FSA accounts. When calculating how much your benefits are worth, think about what percentage your employer is going to be covering. Is your employer covering 100% of the cost? 80%? Does that change if you were to include a spouse or dependents in the coverage? These are all important questions to ask when evaluating an offer package and figuring out how much your health benefits are worth.”
Since Google knows my history, I thought maybe it’s giving me a biased result. So I tried searching in incognito mode so it wasn’t taking into account my recent posting, and it gave the same results.
Now, I do think that a compensation package is clearly different from cash salary. We say that right away at the almost the very beginning of our post. But we did not describe it to them or to anybody as a $75,000 salary cash. We described it as a compensation package that we estimated to be worth around $70,000.
Once, off hand, in a recorded interview. Every single other communication was just saying all expenses paid plus stipend.
They were informed about this beforehand and they signed up for it. If they had wanted something different, all they had to do was ask. Or they could have applied to a different job. When Alice did, she got it.
If people come away from reading this thinking that we said that we paid them both a cash salary of $75,000 or that it’s the same as a $75,000 cash salary, then they made the same mistake that Chloe seems to have made. Chloe kept on saying that we offered to pay her something equivalent to a $75,000 cash salary. We were saying that this was worth around $70,000. I think her interpreting it this way led to a lot of suffering. We tried to explain it to her a bunch of times that that was not what we were saying but she did not seem to be able to update. I do think people seem to struggle with this a lot.
I think the main thing though, and the way I think about it at least, is as a consequentialist. I don’t think in terms of how much money is it worth etc. I tend to think of it as are you getting your needs met? What about your preferences? And I think the key is that she was living an exceptionally comfortable lifestyle. She was living the almost exactly the same lifestyle as myself.
She also had plenty of freedom and options. She publicly says she had savings and we covered everything so well that, as far as we can tell, all of her stipend went into savings as well. She got her dream job 2 and 1⁄2 months after she quit. And she could have gotten a regular dev job far faster if she wanted.
I don’t know how she would have spent the money otherwise, But that seems irrelevant. It seems like if somebody got a scholarship that included room and board, and then they get upset, because they would have spent it on a different house. If they accept the scholarship, then that is how they would spend it. They would spend it on that house and that food, because that is what they chose. They could have just tried to get a different scholarship or a job. In fact, if you accept that scholarship, and then speak to the people who gave you it and say that you would prefer cash instead and they say yes, that is exceptionally generous and way outside the norm of what is expected.
If a scholarship/fellowship/job offered you room and board and you accepted and then later asked for cash instead I suspect that 98% of them would say no.
She is trying to make it sound like a hardship and us being unreasonable when it is incredibly unreasonable to ask for your compensation package to be changed so quickly after you accepted it.
Most people do not ask for changes in compensation until they’ve been working for at least a year.
Most people if they’re offered room and board + stipend never get the option of switching to cash only.
Most people don’t accept a compensation package and then later say they would have preferred a different compensation package and therefore they were financially controlled.
Most people don’t go to the EA Hotel and say that they’re being financially controlled because they got room and board and a stipend and couldn’t choose to spend the money on something else.
Most people don’t say that a scholarship offering to pay for room and board is somehow bad because the student could have used that money to spend less on a room or paid for a different room.
Sure, everybody would prefer that. But they are not entitled to that.
Sure, some people might misinterpret a compensation package being estimated to be worth $X as being the same as a cash salary of $X. But as long as you clearly communicate what they’re signing up for and they have other options and they choose the compensation package, then nothing wrong was done. If they later change their mind and want something different, they have to ask or quit and find a job that meets their criteria. They can’t make a choice, later want to make a different choice, then try to pillory an person for not reading their mind and giving them everything they ask for right away.
People can’t say “They told me I’d get paid $X and I got paid $X but I think $Y would be better, therefore we have to warn the community about the ‘predator’ in our midst, ‘chewing up and spitting out’ the youth of the community.”
They can say “They offered me $X and I got paid $X, and I would have preferred $Y, and when I asked for $Y, I got $Y.”
They can say “They offered me $X and I got paid $X. I would have preferred $Y, but I never asked for $Y and that made me sad. I guess I should learn from this and get better at asking people for things instead of expecting mind-reading and getting everything that I want immediately without asking.”
Was medical considered part of compensation? In the appendix you describe it as Emerson “generously covering” them, and that Alice never had an agreement to have them covered.
I know it’s hard having lots of critical attention and upending your schedule to respond to inquisitive internet people, but if you were able to be a bit more concise I think it would be really helpful for readers. Your comment is ~2k words, but reads to me like it has more like 750 words worth of things to say.
Yeah, I agree. I find it quite difficult to write concisely. I am trying to get better, but as you can clearly see, I have not succeeded to the optimal amount yet. 😛
80% of the money we spent on their compensation was not going to travel. Copy-pasting comments from the thread over here where this number was originally said:
″
Where are you getting that number from? It was a mix of rent, food, medical, productivity tools, etc. Some quick math I did shows that only 6% of the money we spent on her was for travel.
Math from this doc
Flights:800+190=990
Total spent on her when she was compensated with room, board, travel, and medical + stipend: 17,174
990/17174 = 6%
(I didn’t include the flight from the Bahamas to London because that was when she was picking her own cash salary, rather than the all expenses paid + stipend. We’d just already booked it before she’d switched to cash.
If you want to include that, it’s hard, because then should we include the cash comp or not?)
It’s also important to emphasize that even though compensation is not the same as purely cash pay, she signed up for the compensation package that she got. When she asked to get compensated purely in cash, we said yes.
So it’s not like she was forced to spend money in a certain way. It’s like if you signed up for a fellowship that covered room and board and a stipend. Later, you decide that you want to spend the money differently, so you talk to the person in charge and they say it’s fine for you to be purely compensated with cash. There’s no forcing you at any point in that process to spend your money in a particular way.
Second follow up comment:
Alice did, and then when she asked she got it. Chloe never requested this.
It’s really important that they signed up for this. If we had promised them $75,000 cash salary and then instead gave them this compensation package, I think that is indeed unethical and unfair. However if they knew what they were signing up for and it was clearly communicated and they said yes, then that is totally fine and an informed choice they made.
I don’t see an alternative. I can’t read minds. I couldn’t change their comp package if I didn’t know they wanted to. And when I did know, I said yes.
If they chose this compensation package when they could have applied for other jobs with a more standard package or could have asked for a standard package, then they did indeed choose this compensation package.
Additionally, we need to be able to distinguish between “this was what they chose” and “this was what they would have preferred if they could have had anything in the world right away without having to ask”.
Like, imagine I applied the same standards to funders. “I asked for $50,000 and they gave me $50,000, but I would have preferred $75,000. Yes, I didn’t ask for $75,000, but most people in my shoes would prefer $75,000 over $50,000.” (Or replace with whatever numbers make most sense to you)
This follows the same structure of the argument “Alice and Chloe signed up for a all-expenses-paid + stipend compensation package and they got that, but they would have preferred a cash salary of a similar value to the comp package. Yes, they didn’t ask for that, but most people in their shoes would prefer a cash salary over the other comp package.”
Or maybe a better analogy is a charity applying for funding and the grantmaker donates but with earmarked funds. All orgs would prefer unearmarked funds (flexible funds are more useful than earmarked ones), but that doesn’t mean it’s unethical for a donor to earmark their donations.
Is rent a travel expense?
Counting rent while traveling if this was a part-time travel experience seems reasonable. For example, if they usually live in the Bay area and they’re expected to travel to London for EAG, the cost of the Airbnb in London is clearly a travel expense.
However, if they are always traveling and they do not have a permanent place anywhere, that does not seem like a travel expense but rather just regular rent. Neither of them had a permanent place. Alice had been nomadic before she even met us. Counting that as a travel expense in this context doesn’t make sense and will lead to people being misled.
Think about it. Otherwise then, for the last 4 years I have paid zero rent? Clearly, if you are a full-time nomad then airbnbs are just rent, not travel.
How to calculate total compensation
I quickly googled “when people describe a compensation package do they usually include medical” and the first result said:
“Health Insurance Benefits are a huge piece of your overall compensation package. This can include Medical, Dental, Vision, as well as HSA/FSA accounts. When calculating how much your benefits are worth, think about what percentage your employer is going to be covering. Is your employer covering 100% of the cost? 80%? Does that change if you were to include a spouse or dependents in the coverage? These are all important questions to ask when evaluating an offer package and figuring out how much your health benefits are worth.”
“A total compensation package goes beyond your new hires’ base pay rate. It also includes items like health insurance, bonuses, and paid time off”
When I Google “how to calculate the value of your compensation package” these are the first results:
“To calculate total compensation for an employee, take the sum of their base salary and the dollar value of all additional benefits. Additional benefits include insurance benefits, commissions and bonuses, time-off benefits, and perks.”
“Total compensation is the combined value of your salary, bonuses, a 401(k) match, free office coffee, and more. All those freebies or conveniences that feel like work perks—including your PTO—are actually parts of your total compensation package, and they can have just as much value as your salary.”
Since Google knows my history, I thought maybe it’s giving me a biased result. So I tried searching in incognito mode so it wasn’t taking into account my recent posting, and it gave the same results.
Now, I do think that a compensation package is clearly different from cash salary. We say that right away at the almost the very beginning of our post. But we did not describe it to them or to anybody as a $75,000 salary cash. We described it as a compensation package that we estimated to be worth around $70,000.
Once, off hand, in a recorded interview. Every single other communication was just saying all expenses paid plus stipend.
They were informed about this beforehand and they signed up for it. If they had wanted something different, all they had to do was ask. Or they could have applied to a different job. When Alice did, she got it.
If people come away from reading this thinking that we said that we paid them both a cash salary of $75,000 or that it’s the same as a $75,000 cash salary, then they made the same mistake that Chloe seems to have made. Chloe kept on saying that we offered to pay her something equivalent to a $75,000 cash salary. We were saying that this was worth around $70,000. I think her interpreting it this way led to a lot of suffering. We tried to explain it to her a bunch of times that that was not what we were saying but she did not seem to be able to update. I do think people seem to struggle with this a lot.
I think the main thing though, and the way I think about it at least, is as a consequentialist. I don’t think in terms of how much money is it worth etc. I tend to think of it as are you getting your needs met? What about your preferences? And I think the key is that she was living an exceptionally comfortable lifestyle. She was living the almost exactly the same lifestyle as myself.
She also had plenty of freedom and options. She publicly says she had savings and we covered everything so well that, as far as we can tell, all of her stipend went into savings as well. She got her dream job 2 and 1⁄2 months after she quit. And she could have gotten a regular dev job far faster if she wanted.
I don’t know how she would have spent the money otherwise, But that seems irrelevant. It seems like if somebody got a scholarship that included room and board, and then they get upset, because they would have spent it on a different house. If they accept the scholarship, then that is how they would spend it. They would spend it on that house and that food, because that is what they chose. They could have just tried to get a different scholarship or a job. In fact, if you accept that scholarship, and then speak to the people who gave you it and say that you would prefer cash instead and they say yes, that is exceptionally generous and way outside the norm of what is expected.
If a scholarship/fellowship/job offered you room and board and you accepted and then later asked for cash instead I suspect that 98% of them would say no.
She is trying to make it sound like a hardship and us being unreasonable when it is incredibly unreasonable to ask for your compensation package to be changed so quickly after you accepted it.
Most people do not ask for changes in compensation until they’ve been working for at least a year.
Most people if they’re offered room and board + stipend never get the option of switching to cash only.
Most people don’t accept a compensation package and then later say they would have preferred a different compensation package and therefore they were financially controlled.
Most people don’t go to the EA Hotel and say that they’re being financially controlled because they got room and board and a stipend and couldn’t choose to spend the money on something else.
Most people don’t say that a scholarship offering to pay for room and board is somehow bad because the student could have used that money to spend less on a room or paid for a different room.
Sure, everybody would prefer that. But they are not entitled to that.
Sure, some people might misinterpret a compensation package being estimated to be worth $X as being the same as a cash salary of $X. But as long as you clearly communicate what they’re signing up for and they have other options and they choose the compensation package, then nothing wrong was done. If they later change their mind and want something different, they have to ask or quit and find a job that meets their criteria. They can’t make a choice, later want to make a different choice, then try to pillory an person for not reading their mind and giving them everything they ask for right away.
People can’t say “They told me I’d get paid $X and I got paid $X but I think $Y would be better, therefore we have to warn the community about the ‘predator’ in our midst, ‘chewing up and spitting out’ the youth of the community.”
They can say “They offered me $X and I got paid $X, and I would have preferred $Y, and when I asked for $Y, I got $Y.”
They can say “They offered me $X and I got paid $X. I would have preferred $Y, but I never asked for $Y and that made me sad. I guess I should learn from this and get better at asking people for things instead of expecting mind-reading and getting everything that I want immediately without asking.”
Was medical considered part of compensation? In the appendix you describe it as Emerson “generously covering” them, and that Alice never had an agreement to have them covered.
I know it’s hard having lots of critical attention and upending your schedule to respond to inquisitive internet people, but if you were able to be a bit more concise I think it would be really helpful for readers. Your comment is ~2k words, but reads to me like it has more like 750 words worth of things to say.
Yeah, I agree. I find it quite difficult to write concisely. I am trying to get better, but as you can clearly see, I have not succeeded to the optimal amount yet. 😛