Here’s something I keep seeing play out: An executive lands a fantastic offer in San Francisco or New York. The number looks great on paper. Really great, actually. But then they start doing the math—the real math—and that excitement fades a little.
Because here’s the thing nobody talks about at the negotiating table: a dollar in Dallas buys you a whole different life than a dollar in Manhattan.
“The conversation around executive compensation has fundamentally changed in the past five years,” says Jim Hickey, President and Managing Partner at Perpetual Talent Solutions, a Dallas-Fort Worth executive search firm. “Executives are no longer simply comparing salary numbers. They’re calculating what their total compensation actually buys them in terms of lifestyle, wealth accumulation, and long-term financial security.”
And honestly? The numbers are kind of wild once you dig in.
Everyone’s Moving to Texas. Like, Everyone.
This isn’t just anecdotal. CBRE’s analysis shows that Dallas-Fort Worth pulled in 100 new corporate headquarters between 2018 and 2024. That’s more than any other metro in the country. Austin came in second with 81. Houston and Phoenix? They each got 31.
But here’s what really caught my attention: in 2024 alone, 96 companies announced they were moving their headquarters somewhere new. That’s up from just 18 the year before. And Texas grabbed over a quarter of all those interstate moves. California lost 17 headquarters—12 of them went straight to Texas.
You don’t see that kind of migration without a reason.
The Real Cost of Living Gap
Let’s talk actual numbers, because this is where it gets interesting.
According to Salary.com, living in Dallas costs about 43 percent less than San Francisco. Think about what that means: if you’re making $600,000 in SF, you’d only need around $340,000 in Dallas to live the same way. So a $400,000 package in DFW? You’re actually coming out ahead.
Numbeo’s research tells a similar story with New York. Dallas runs about 29 percent cheaper even before you factor in rent. Once you add housing into the mix, you need roughly $6,700 in Dallas to match an $11,000 lifestyle in Manhattan.
That’s not a small difference. That’s a completely different financial reality.
The Tax Thing Is Huge (And Often Overlooked)
Okay, so here’s where high earners really need to pay attention: Texas has no state income tax. None.
California? They’ll take 13.3 percent off the top if you’re making over a million. New York’s top rate hits 10.9 percent. For an executive pulling in $1.5 million a year, moving to Texas could mean keeping an extra $150,000. Every single year.
“The tax savings are substantial, but they’re just one piece of the equation,” Hickey explains. “Smart executives look at the complete picture—base salary, bonus potential, equity compensation, cost of living, and tax implications. When you run those numbers for DFW versus coastal markets, the results often surprise people who haven’t done the analysis.”
The Tax Foundation puts it plainly: if you’re earning $250,000 or more, you’re saving somewhere between $15,000 and $30,000 annually just by living in a state without income tax. And for energy executives—where bonuses and equity can dwarf base salary—those savings compound fast.
What’s Happening in Energy Compensation Right Now
The energy sector isn’t slowing down on pay. The Alvarez & Marsal 2024/2025 Energy Compensation Report found that executive compensation is climbing 8 to 10 percent annually. And here’s something that might surprise you: about 85 percent of an E&P or oilfield services executive’s package comes from incentive-based compensation. The base salary? Almost an afterthought.
Zayla Partners looked at 183 energy companies and found CEO compensation ranging from $2.9 million at the 25th percentile to $10.4 million at the 75th. That’s an 8 percent jump from the prior year. And those performance-based long-term incentive awards? Companies are paying out at 135 percent of target on average.
“The energy sector’s compensation structures have evolved significantly,” Hickey notes. “Boards are prioritizing metrics around cash flow, safety, and environmental performance. Executives who can demonstrate results in these areas are commanding premium packages, and many are choosing to base themselves in Texas where their compensation goes furthest.”
It’s Not Just About the Money (But Also… It Kind of Is)
Look, the financial case for DFW is strong. But there’s more to it. You’ve got a central location that puts both coasts within reach. DFW International is one of the busiest airports on the planet—and if you’re traveling for work constantly, that matters more than people realize.
The population keeps growing, which means the talent pool keeps deepening. The regulatory environment is business-friendly. Energy sector infrastructure is already here. Commercial real estate costs less. The region now hosts public companies worth a combined $1.5 trillion. There’s even a Texas Stock Exchange in the works.
It adds up.
Running the Numbers on an $800K Package
Here’s a thought experiment. Say you’re weighing an $800,000 offer. Same number, three different cities.
In San Francisco, California’s going to take $85,000 to $100,000 right off the top. Then the higher cost of everything chips away at what’s left.
In New York, you’re looking at state and city taxes eating over $80,000. Manhattan rent does the rest.
In Dallas, that $800,000 faces zero state income tax. And it stretches 30 to 40 percent further on day-to-day expenses.
“We counsel executives to think in terms of wealth accumulation potential rather than headline salary figures,” Hickey says. “An executive who spends a decade in Dallas versus San Francisco, investing the difference in taxes and living costs, could accumulate several million dollars in additional net worth. That’s a meaningful difference in retirement security and generational wealth.”
Several million dollars. Over a career, that’s not nothing.
Where This Is All Heading
The momentum isn’t slowing. Industry analysts report that Texas gained 24 out-of-state headquarters in 2024—the first year-over-year increase since 2021. Site selection experts expect the trend to continue.
For energy companies specifically, there’s something of a flywheel effect happening. As more firms relocate, the executive talent pool gets deeper, which makes Texas even more attractive for the next company considering a move. Chevron went to Houston. Goldman Sachs is building a Dallas campus targeting over 5,000 employees.
“The executive compensation landscape has permanently shifted,” Hickey says. “Coastal markets will always have their appeal and their role in the economy. But for energy sector executives focused on maximizing their career earnings and building long-term wealth, Dallas-Fort Worth presents a compelling value proposition that’s increasingly difficult to ignore.”
Maybe it’s time to run those numbers yourself. Because when you look past the headline salary and into what that compensation actually means for your life? The answer might surprise you.
