← Back to context

Comment by sytelus

4 years ago

I'd say this is rather distribution at work. To build software competitively you need fairly good people and not a lot them would want to end up at Hertz. Places like Hertz are not tech companies which also often makes them very low margine, capital deprived and of limited scalability. Therefore, they cannot offer the compensation like top 20% of the players. The difference of compensation between top 20% and rest of the players is just amazing and reflects market forces operating in talent distribution that has sharp peak than other professions.

Software development requires placing millions of bytes exactly at right places to make billions of transitors sing and dance in precise sequence about billion times a second, every second. This is of complexity unlike anything humanity has ever encountered before.

However, Hertz did end up spending $32M, so it turns out they can offer compensation like the top 20% if they wanted to.