re: Morgan Stanley CEO to bankers: If you want NYC salary, you need to be in NYC

quote:

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And here all this time I thought the salary you earned was based on the value you brought to the company.

Silly me.

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1. The salary you earn is based on what it would cost to replace you - or, more specifically, based on what it would cost to replace your skills, experience, and any other perceived value. While this is basically the same statement, the point is that “the value you bring to the company” changes if someone else can do the same job with equal performance for less.

2. The term “value” is subjective. If a company is willing to pay a higher salary to people who work in the office, then they are pretty clearly stating that they see this as part of an employee’s value.

Value in NYC isn’t the same as value in Rayne, La wouldn’t you say?