Well, yes, but you don't have to work.
replyMore like you are not allowed to work. Loss of work experience, loss network, not even accounting for inflation.
replyI would welcome an opportunity to walk away from the entire tech industry with a guaranteed-for-life income, allowing me to pursue dreams without them needing to be financially viable. Setting up as a high end timber boat builder without ever needing to turn a profit while still having the same income I do now is something I'd jump at immediately.
replyWhile I agree with the sentiment, you could lose that income at any time should they close to drop to non compete.
replyPlus, nobody says you can't work in any other field you like, just not whatever you used to do.
replyNet present value of 50% of salary for the next 30 years is something like a million dollars for most HN commenters, I'd guess.
Except it's not "for life". It's until they feel free to lift the non-compete. My guess is that most information you take from a company is irrelevant in a couple years. Maybe 5 tops?
replyPlus it'd almost certainly end with zero notice. You'd get a email saying "you're free to go". Suddenly. After say 26 months.
So it's not like a "pension for life" - just a gap in your employment history.
Oh no, ah jeez, slightly more than one year of income for zero effort, darn.
replyAny employment gap can be easily explained by saying "I was under a non-compete and being paid garden leave while working on personal projects to keep my skills fresh". It's very common in e.g. the finance world, I believe.
I suspect most people with that sentiment don't have a mortgage/kids/etc. I have known youngish people who got a very nice severance package back in the day and essentially took a 6 month sabbatical. I don't really see a problem for getting future jobs so much. But it is a loss of significant income (assuming you were well-compensated even if you're still being paid something) and may not have great alternatives for income though, if you're in the position to do so, you can of course travel or whatever.
replyI've no argument with the severance cash, I'm saying that you can't just revert to a hobby because you have an "income for life."
replyThe uncertainty means you're still out on the job market looking for a real job.
There's perhaps significantly lower total compensation and potential uncertainty. A lot of people just aren't in the position to travel the world (or whatever) for a year. Or even work on an open source project that may or may not even be within the bounds of the non-compete depending in the company.
replyAnd loss of negotiating power -- the company knows your BATNA is garden leave, and probably not a better offer.
replyFor a lot of people, taking 50% of base salary (absent bonus/RSU/etc.) isn't very practical. Even if there's some alternative like Starbucks.
replyDoesn't mean you don't have to make the mortgage payment.
replyit's not necessarily about fully compensating you. It's about making the non-competes actually cost the company something so they can't use them as free leverage to get you to accept shitty conditions today because quitting means not being able to work in your field at all for x years even if someone wants you around.
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