This is a very rude question, but on this subject of being lean, I looked up your 990 and you pay yourself less than some of your engineers.
Yes, and our goal is to pay people as close to Silicon Valley’s salaries as possible, so we can recruit very senior people, knowing that we don’t have equity to offer them. We pay engineers very well. [Leans in performatively toward the phone recording the interview.] If anyone’s looking for a job, we pay very, very well.
So, I googled their tax filing out of curiosity. It’s true that Meredith pays herself much less than her engineers, which is great. What I was rather shocked to see is that they pay their software developers enormous salaries. They’re listing developers making over $400,000 per year, with their VP making over $660,000 per year. Now, I’m all for the value-creators making more money than the CEO. I just had no idea that software developers make that kind of coin. I was thinking of donating to Signal, but I’m kind of weirded out by those astronomical salaries.
That’s inline with Silicon valley salaries. Basic houses cost 2mil there, so it’s not completely outrageous.
As an example, openai pays all its engineers 300k flat+500k/yr in some stock based asset. Another example is Netflix, who are notoriously a very fickle employer, but salaries start in the 400k range and go up from there.
Yes, the article makes the point that Signal needs to compete for talent with the rest of Silicon Valley. I get that. And we’ve all heard about the nearly unfathomable amounts of money that tech companies throw around. When you break it down to individual salaries, though, and see that even normal people in normal jobs are making a million dollars a year between salary and stock… well, I think it really exposes the spectacular wealth inequality that we have allowed to fester. I mean, sure, shelter costs may be high in Silicon Valley, but the cost of other goods remain about the same. A $50,000 truck that an average person in Nebraska might have to save for years to afford is barely a rounding error for folks making a million a year. I’m no economist, but it does seem like there are consequences for this kind of ever-growing wealth inequality.
It is also absurd on its face for a multi-millionaire developer to place a “Donate Now” button in an app and talk about being a non-profit to tug at the heart strings of people who make one-tenth of what the developers are making. It’s feels like Scrooge asking Tiny Tim for a donation.
Anyway, I don’t blame the developers for this absurd situation, and I do appreciate Signal, and Meredith is clearly a cool person who is fighting the good fight against big tech surveillance. But every once in a while an article like this reminds me how deeply fucked up the world is. It seems we are approaching pre-French Revolution levels of economic disparity, and maybe it helps explain why so many working class people are pissed off.
I mean, how does a free app with no advertising in it make that kind of money?
A free app with no advertising doesn’t make that kind of money, it gets progressively deeper into debt to a good Silicon Valley rich guy who got it off the ground, Brian Acton.
His biography on the Signal Foundation website:
Brian Acton is an entrepreneur and computer programmer who co-founded the messaging app WhatsApp in 2009. After the app was sold to Facebook in 2014, Acton decided to leave the company due to differences surrounding the use of customer data and targeted advertising to focus his efforts on non-profit ventures. In February of 2018, Acton invested $50 million of his own money to start the Signal Foundation alongside Moxie Marlinspike. Signal Foundation is a nonprofit organization dedicated to doing the foundational work around making private communication accessible, secure and ubiquitous.
Prior to founding WhatsApp and Signal Foundation, Acton worked as a software builder for more than 25 years at companies like Apple, Yahoo, and Adobe.
The Wikipedia article on the Foundation says the loan balance was up to $105M later in 2018. Meanwhile, Acton is still worth $2.5B according to Wikipedia, so things are probably fine for now, even 6 years later.
But you’re right that Signal eventually needs revenue to keep even a small team of high caliber software engineers and devsecops folks around. You very much want excellent engineers to continue to be involved with critical encrypted communications software on an ongoing basis, so it will cost money indefinitely. Presumably Acton does not wish to bankroll it indefinitely.
Again back to the interview:
I wouldn’t imagine that most nonprofits pay engineers as much as you do.
Yeah, but most tech is not a nonprofit. Name another nonprofit tech organization shipping critical infrastructure that provides real-time communications across the globe reliably. There isn’t one.
This is not a hypothesis project. We’re not in a room dreaming of a perfect future. We have to do it now. It has to work. If the servers go down, I need a guy with a pager to get up in the middle of the fucking night and be on that screen, diagnosing whatever the problem is, until that is fixed.
So we have to look like a tech company in some ways to be able to do what we do.
I’m really glad they pay those engineers that much, so that Zuckerberg and his ilk can’t entice them away with oodles of money. One presumes they also believe in the cause, but I think this currently looks like Acton fighting surveillance capitalism with what capitalism got for him earlier in his career.
Cofounder Moxie Marlinspike is clearly a brilliant hacker and coder who was crucial to Signal’s creation, but I think it makes sense that he hasn’t stuck around to try to solve the long term business problem of keeping it aloft infinitely.
So what to do about it? The OP interview is with Meredith Whittaker, who’s entire job is figuring that out:
Since she took on the presidency at the Signal Foundation, she has come to see her central task as working to find a long-term taproot of funding to keep Signal alive for decades to come—with zero compromises or corporate entanglements—so it can serve as a model for an entirely new kind of tech ecosystem.
I’m a recurring donor because I want Signal to succeed and I want to vote now with my wallet, but fundamentally it’s on Whittaker to figure out how to make the long term work. Here’s what she says:
I see Signal in 10 years being nearly ubiquitous. I see it being supported by a novel sustainability infrastructure—and I’m being vague about that just because I think we actually need to create the kinds of endowments and support mechanisms that can sustain capital-intensive tech without the surveillance business model. And that’s what I’m actually engaged in thinking through.
Not all SW devs make that kind of money. I don’t live in Silicon Valley, and I make significantly less than that amount. I could probably get a job there making somewhere north of $300k, but my expenses would go through the roof and I’d be stuck in SV traffic all the time, no thank you. I get paid well, but less than half what Signal is paying.
