Latest / The Diversity Career Podcast with Fexingo: Inclusion, Equity, and Underrepresented Professionals / How One Company Pay Transformed Transparency
Transcript
- Lucas: So Buffer — the social media scheduling company — they made a radical decision back in 2013 that they've stuck with ever since. They made every single employee's salary public. Not just internally — anyone on the internet can look up exactly what the CEO makes, what the customer support rep in the Philippines makes, what the engineer in Germany makes. Luna: I remember when that happened. Everyone in tech was talking about it. And most companies were like, 'Yeah, no thanks.' Lucas: Exactly. And it's not just a headline — they actually built a formula. Their compensation model is based on role, experience, and location. So a senior engineer in San Francisco might earn $200,000, while the same role in a lower-cost city might earn $160,000. And that's all laid out in a spreadsheet on their website. Luna: It's a fascinating case study for our listeners, especially if you're underrepresented and you've ever wondered whether you're being paid fairly. Because transparency like this… it takes the guesswork out. And if we've helped you think through a career move like negotiating your salary, we'd love your support to keep the show ad-free — you can buy us a coffee at buy me a coffee dot com slash fexingo. No pressure, just if it's helped. Lucas: Appreciate that. So let's get into the numbers. Buffer's average salary across all countries was around $130,000 as of their last public update. They adjust for cost of living using a formula that applies a multiplier based on where you live. That means a team member in Manila and one in London doing the same job earn different amounts — but the company argues it's fair because your purchasing power is roughly equal. Luna: Right. And that's a huge point of debate. Critics say it's not equal pay for equal work. Supporters say it's equitable pay for equal contribution, accounting for context. Which side do you land on? Lucas: I think it depends on your goal. If your goal is pure pay equity — same salary for the same role regardless of location — then Buffer's model isn't that. But if your goal is to reduce pay disparities based on identity, Buffer's model is actually powerful. Because the formula doesn't know your gender, your race, your background. It just applies the same math to everyone. Luna: And that can be a huge equalizer for underrepresented professionals who might otherwise be lowballed in negotiations. Lucas: Exactly. Studies show that women and people of color often negotiate less aggressively or face pushback when they do. But if the salary is predetermined by a transparent formula, that negotiation gap disappears. You just get paid what the formula says. Luna: So what's the downside? Because there has to be one, or every company would do it. Lucas: Plenty of downsides. First, managers lose discretion. If you have a superstar performer, you can't give them extra without everyone seeing. Buffer actually lost some top performers to companies that offered more opaque but higher pay. Also, transparency can breed jealousy — people compare themselves to colleagues in different locations and feel it's unfair. Luna: I've read that some employees at Buffer felt demotivated because they saw a peer making more for what seemed like similar work, even if the formula explained it. Lucas: That's a real cost. Buffer's CEO has said that transparency forces you to be really rigorous about your compensation philosophy, and that's hard. You can't just wing it. You have to be able to justify every dollar. And that's uncomfortable for a lot of leaders. Luna: So for our listeners who are underrepresented — maybe in a company that isn't transparent — what can they take from this? Lucas: Great question. First, you can use sites like Levels.fyi or Glassdoor to benchmark your role against similar companies. Second, you can ask your employer directly if they have a pay philosophy. Even if they don't publish everything, some companies are moving toward transparency bands — salary ranges for each level. Luna: And if they say no, that's data too. It tells you something about their commitment to equity. Lucas: Exactly. Buffer's experiment shows that radical transparency isn't a silver bullet — but it does shift the conversation from 'what can I get away with paying you' to 'what is this role worth.' And for underrepresented professionals, that shift is invaluable. Luna: So where does Buffer go from here? Are they still fully transparent? Lucas: They are. As of today, May 2026, their public salary spreadsheet is still live. They've refined the formula over the years, but the principle hasn't changed. They've also added equity and bonus details. It's become part of their brand—they're known as the company that pays openly. Luna: I wonder if we'll see more companies follow suit, or if Buffer remains an outlier. Lucas: I think the trend is toward more transparency, but not full public disclosure. Companies like GitLab publish salary calculators internally. Some states like California and New York now require salary ranges on job postings. So the pressure is building. Buffer just went all the way. Luna: And for anyone listening who wants to advocate for more transparency at their own company, what's the first step? Lucas: Start by asking your manager or HR: 'What is our compensation philosophy?' If they don't have one, that's a starting point. Or suggest running a pay equity audit. You don't have to demand public salaries on day one. Small steps can build momentum. Luna: And if you're job hunting, you could ask about transparency in the interview process itself. 'How does the company determine salary for this role?' Lucas: Absolutely. And if they dodge the question, that's a red flag. Companies that are confident in their pay practices are usually willing to talk about them. Luna: I think that's a powerful takeaway. Thanks, Lucas. Lucas: Thanks, Luna. And to our listeners — we'd love to hear your experiences with pay transparency. You can find us on social media. Until next time.