Hi Seema, thanks for this thoughtful post! I work as a grantmaker at Coefficient Giving (formerly Open Phil) and I’ve had similar thoughts in the past. Last year, CG began offering a modest severance package for staff who leave voluntarily to mitigate the golden handcuffs effect. Anecdotally, a number of colleagues have left for lower-paying jobs at other impactful nonprofits over the past year. It’s hard to say whether staff would pursue other opportunities more often if CG paid less, but it’s been reassuring to see that some staff feel comfortable leaving and the decision is celebrated by the org.
CG’s HR team also regularly conducts benchmarking exercises to sense-check that staff compensation is in line with other foundations and roles with similar levels of responsibility. Overall, CG (and I strongly suspect GW) spends considerably less on opex than peer foundations. Staff fly economy, bureaucracy is low, and people have the tools they need to work efficiently so the ratio of money moved per FTE is high.
A number of CG and GW staff members choose to donate some of their pay, and CG/GW may have this in mind when setting compensation. Personally, I’ve passed up pay or donated a little over half my income this year. Some staff use part of their pay for childcare, which helps them achieve their professional ambitions while maintaining work-life balance.
I share the concern that the ecosystem effects of drawing talent through high salaries may be under-appreciated. But when I zoom out, I directionally think that increasing compensation in the social impact space is valuable. For example, there has been a push to increase salaries in the animal advocacy field in recent years and my understanding is that this has increased professionalism and decreased workplace harassment—employers have a larger talent pool to draw from, and have an easier time replacing problematic employees.
Of course, there are always tradeoffs, and I sometimes feel uncomfortable that orgs working to end poverty offer lavish compensation (even by US standards). But all things considered, I think there are fair reasons why an org like GiveWell would choose the compensation structure it does.
On an unrelated note, I help organize Princeton’s Effective Altruism student group. We and the School for Moral Ambition club would love to host you at an event to discuss your work when you’re back from sabbatical—it’s wonderful to have a fellow randomista on campus!
Yes that’s right! I’ll message them to see if they’re able to share more info on this thread