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“Software program engineers working in AI earned 48% greater than the typical software program engineer on the firm, based on a payroll spreadsheet shared with BI.”
— Jason ✨👾SaaStr 2025 is Could 13-15✨ Lemkin (@jasonlk) January 11, 2025
So a more moderen situation that’s mentioned so much at start-up board conferences and investor conferences is AI Engineer comp.
Typically, I discover most start-ups need to hold engineering comp pretty flat. Again within the day, my CTO simply needed 3 tiers: entry stage, high IC, supervisor. That was it. 3 pay bands, they usually have been very tight. Fairness various much more, however I do know it was essential to my CTO that everybody on his staff felt like equal stakeholders, relative to expertise.
I do assume that is true at most start-ups, at present too. They need pretty constant comp throughout engineering, and concern if nothing else, a number of situation if favorites are performed, the brand new “man” will get a greater deal, and many others.
However AI is difficult this.
No start-up can compete with OpenAI”s huge comp and annual tender presents to supply partial liquidity. But it surely has created a two-tiered comp system for engineers. The “AI Staff” usually makes much more.
I don’t have any solutions right here however I discovered the above Enterprise Insider article with a leaked Microsoft memo useful:
They pay AI engineers 48% extra
They’ve particular spot retention bonuses for AI engineers to maintain them
That is roughly what I see, too. The “AI Staff” at many SaaS startups makes 30%-40% extra. It creates points and drama.
However most likely not paying their premium will create simply as many points and drama as effectively.
What I usually see is many SaaS corporations aren’t actually AI-native and sometimes simply have 1 or 2 true AI magicians on the staff. Those that basically make the AI magic occur. And also you usually can’t afford to lose them. Are they price 48% extra? Equity apart — after all they’re.
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