Last year we were having a discussion at lunch. Coworker was building a new house, and when it came to the numbers it was let loose that it was going to cost about $700K. This didn't seem like much, except to a young guy that joined the previous year and had done nothing but kick ass and take names. The new guy was arguably the most talented guy in the company by a considerable margin, so he thought someone building a $700K home might've been overextending themselves. The person buying the home retorted that it was reasonable and asked the new guy why he wouldn't buy the Porsche Boxster he considered his dream car. The new guy responded that would never be prudent. That didn't seem right, as several of us at the table could've nearly swung a Boxster with just our bonus.
The conversation ended up in numbers. Coworker building the house pulled about $140K base (median for a programmer was probably $125K), and his bonus nearly matched the new guy's salary, which was an insulting $60K -- and got cut out of the bonus and raise in January for not being there a full year, only 11 months.
Turns out he was a doormat in negotiating, though his salary history was cringeworthy. It pained everyone to hear it, considering how nice of a guy he was. In all honestly, $60K was a big step up for him. Worst of all, this wasn't a cheap market (Boston). The guy probably shortchanged himself well over a half-million dollars in the past decade. This was someone who voluntarily put in long hours and went out of his way to teach others, and did everything he could to help other departments like operations and other teams. On top, he was beyond frugal. Supposedly he saved something around 40% of his take home pay, despite living alone in Boston. He grew up in a trailer park.
He spent the next day in non-stop meetings with HR, his manager and the CTO. That Friday he simply handed in his badge without a word, walked out and never came back.
Until 3 months later. As a consultant. At $175/hour.