Certain IT companies mull new pay policies for remote workers

VMware Inc. employees who take up the company’s offer to become permanent remote workers will get a pay cut if they move from Silicon Valley, one of the nation’s most costly areas to live, to a less-expensive city.

The software maker has joined technology companies such as Facebook Inc. and Twitter Inc. in letting some of its office staff choose to permanently work from home in the wake of the coronavirus pandemic. But employees who worked at VMware’s Palo Alto, California, headquarters and go to Denver, for example, must accept an 18% salary reduction, people familiar with the matter said. Leaving Silicon Valley for Los Angeles or San Diego means relinquishing 8% of their annual pay, said the people, who asked not to be identified discussing internal policies.