Earlier quoted context omitted.
I'm skeptical of claims that developers are underpaid. Maybe I feel differently about this because I'm not in a major tech hub and am not faced with the prospect of buying a multimillion dollar cottage, but when I compare my life as a software developer to that of more or less anyone else I know, including doctors and lawyers, I struggle to find a single person who seems to have a more comfortable life than me. I'm n…
You can usually just do the math. Let's assume last year I decreases the loading time of our website by 50%, taking it from 2 seconds to 1 second. This reduces the drop off rate of customers (people who switch websites before it loads) by about 15%. That means a 15% increase in overall sales. Now let's assume it was a $10 million a year business. That means it's now making $11.5 million dollars a year because a softw…
Compensation is set by the market: what is the next person who can do this same job willing to be paid?
If we go out into the market to find all the people that can decrease page loading time by 50% and have them bid against each other, we will probably end up paying the lowest bidder who is capable of the job about the median salary of the profession.
And another point on >the remaining $1.49 million gets distributed amongst execs and investors. People who own equity in the company have legal claim on the cash flows of the business. They balance free cash flows with reinvested capital (assets,, SGA) to sustain free cash flows into the future.