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For big tech, a lot of your comp is in stock. So this would diminish the salary increase effectively by reducing the stock price.

IME, people are a lot more sensitive to lowered stock prices than meager annual increases. The latter doesn’t feel emotionally like a loss.




I don't think that's generally true for people in big tech. Just the highest strata. And to the extent that causes problems, I expect they'll be much smaller than the sorts of market fluctuations we're seeing lately, which companies already have tools to deal with.


I dunno, think about it emotionally. Would you rather have a 2% raise, or for your $20k in stock to become 15k?

We are a very loss averse species.




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