Posted by Michael Potters, CEO/Managing Partner at Glenmont Group
I was thinking of this the other day when hearing a speech about the Millionaire’s Tax on individuals making over $200k a year. (Just the obvious here – when did $200K = $1mm? But that’s another argument.) What is not taken into consideration is that well over 50% of our industry takes place in the most expensive areas of the United States; NYC, Washington DC, San Francisco/Silicon Valley, & Boston.
I had just finished up a search for Chief eDiscovery Counsel for a Mid-Western Fortune 100 company and the person that took the position came from San Francisco.
The candidate was making just under $190K and this new position paid about $225K plus stock. It didn’t really seem like that much of a difference for a major move across the US until I applied a COLA (cost of living analysis) on the 2 areas.
This is the link from CNN/Money that I used: CNN/Money COLA
When we completed it we discovered that the $225K in SF translated to $417K in this big Midwestern city.
This made me think, if you are making $200k in NYC, what would be the equivalent in other locations that have a strong eDiscovery market??
Here is what I came up with.
$200K in NYC (Manhattan) equals;
$110K in Baltimore
$102K in Portland
$95K in Denver
$93K in Cleveland
$92K in Phoenix
$88K in Atlanta
$86K in Charlotte
$85K in Houston
$84K in Pittsburgh
$82K in Nashville
Flipping the cards, I will now show you what $200K in these same marks translates into NYC (Manhattan) dollars.
$200K in each of these cities equals the following in NYC;
$362K in comparison to Baltimore
$389K in comparison to Portland
$419K in comparison to Denver
$428K in comparison to Cleveland
$430K in comparison to Phoenix
$453K in comparison to Atlanta
$464K in comparison to Charlotte
$469K in comparison to Houston
$473K in comparison to Pittsburgh
$486k in comparison to Nashville
Here is what you should take away from this – If you live in any of these markets, appreciate what you have before you jump into a move toward the really expensive areas.
And if you live in NYC, San Francisco, DC or Boston and one of us call you about an opportunity in Charlotte, don’t be so quick to dismiss it.