Earlier quoted context omitted.
it's a lot cheaper to pay one exec a couple million than to staff a medium-sized software engineering org: even 500 people at an average fully burdened cost of $250k is $125m/y.
One major issue has been that paying a developer market rates is practically unthinkable to traditional automakers. If you were to apply to a mid/senior job in Michigan, you might get offered $125k. The typical workaround has been to establish "software offices" on the west coast with separate pay scales and separate corporate structures that largely function as internal "external" vendors. The C suite are able to pr…
I’d probably add that the pay scale for software vs. electrical/mechanical people probably wasn’t notably different in the 90s or so. And California rates didn’t compensate for CoL in general. Very different.