Let’s talk about something that doesn’t come up enough in compensation conversations: where you actually live.
Because here’s the thing—a $400,000 salary sounds great. Until you realize half of it disappears into a cramped apartment in Manhattan. Or a mortgage that makes your stomach hurt every month in Boston.
This is where Philadelphia gets interesting. And honestly? It’s a conversation more energy executives should be having.
“Executive candidates in the energy sector are becoming increasingly sophisticated about total compensation,” says Jim Hickey, President Managing Partner at Perpetual Talent Solutions, a Philadelphia executive search firm. “They’re looking beyond the headline number to understand what their compensation actually buys them in terms of lifestyle, housing, and long-term wealth building.”
That shift in thinking? It changes everything.
The Numbers That Actually Matter
Let’s get specific, because vague claims about “affordability” don’t help anyone.
According to Salary.com, living in New York City is 52.9% more expensive than Philadelphia. And if we’re talking Manhattan specifically? Redfin’s analysis shows housing costs are 373% higher there than in Philly.
Three hundred and seventy-three percent. Let that sink in.
Boston’s not much better. Cost of living runs about 33.8% higher than Philadelphia. Median home prices? Redfin reports $602,600 in Boston versus $265,000 in Philadelphia. That’s not a rounding error. That’s a completely different financial reality.
“When we present Philadelphia opportunities to candidates currently based in Houston, New York, or Boston, the cost of living conversation fundamentally changes the compensation discussion,” Hickey notes. “A $350,000 offer in Philadelphia often delivers more actual value than a $425,000 package in Manhattan.”
Read that again. Less money on paper. More money in your pocket. More house. More life.
Why Philadelphia Makes Sense for Energy Careers
Okay, but what about the work itself? Fair question.
Philadelphia isn’t some energy backwater. PECO—Pennsylvania’s largest electric and natural gas utility—is headquartered here, serving 1.6 million electricity customers and over 500,000 natural gas customers across southeastern Pennsylvania. They’re part of Exelon Corporation, which means access to one of the nation’s largest energy networks.
Philadelphia Gas Works is the largest municipally owned natural gas utility in the country. The Philadelphia Energy Authority is driving clean energy investment across the region. There’s real work here. Serious work.
And the timing’s good. The International Energy Agency reports that global energy employment hit 76 million people in 2024—up more than 5 million from 2019. The electricity sector has actually become the largest energy employer, surpassing fuel supply for the first time. Utility-dense regions like Philadelphia are positioned to benefit from that shift.
The Market’s Working in Your Favor
Here’s something that gives executives leverage right now: the talent market is tight. Really tight.
ON Partners data shows a 111% increase in executive hiring within energy and cleantech over the past three years, plus a 9% year-over-year bump in executive compensation. Companies need people. Good people. And they’re willing to negotiate.
“Smart candidates are reframing the conversation entirely,” Hickey explains. “Instead of asking for a higher base salary to match a competing offer in a high-cost city, they’re demonstrating how a Philadelphia-based role at a competitive but not top-of-market salary actually delivers superior financial outcomes.”
That’s a sophisticated move. And it works.
Pennsylvania’s tax structure helps too. The state has a flat income tax rate of just 3.07%—one of the lowest in the nation. When you combine that with Philadelphia’s cost of living index of 109 versus Manhattan’s 255… the math starts to look really good over time.
How to Actually Use This in Negotiations
So what does this look like in practice? A few approaches that tend to work:
- Lead with total compensation analysis—show how equivalent purchasing power works at different salary levels in different cities
- Get specific about housing, since that’s where the biggest savings show up (and where the math gets most dramatic)
- Factor in state and local taxes—they matter more than people realize
- Think about long-term wealth building through real estate equity in a market where you can actually afford to buy something nice
- Don’t ignore commute times and quality of life—these affect your performance and how long you’ll actually stay in a role
“The executives who negotiate most effectively understand that compensation is a multi-dimensional conversation,” Hickey observes. “They come prepared with data on cost of living differentials, tax implications, and lifestyle factors. This sophistication signals to employers that they’re dealing with a strategic thinker—which only strengthens the candidate’s position.”
In other words: doing your homework doesn’t just help you negotiate better. It makes you look like exactly the kind of person they want to hire.
The Stuff That’s Harder to Quantify
Beyond the spreadsheet math, there are practical reasons Philadelphia works for energy executives.
The location’s kind of perfect. You’re close to D.C. for regulatory matters, New York for financial markets, and major energy infrastructure throughout the Mid-Atlantic. Philadelphia International Airport connects you to pretty much everywhere you’d need to go.
And if you’re building teams—which most executives are—you’ve got access to a solid talent pipeline. Major research institutions. A growing tech sector that’s increasingly intersecting with energy. People want to live here, which makes hiring easier.
The Bottom Line
Look, nobody’s saying Philadelphia is right for everyone. But if you’re an energy executive weighing your next move, the 40% cost differential with New York—or the 34% gap with Boston—represents real money. Money that flows directly into your lifestyle, your savings, your long-term financial security.
“We’re seeing a fundamental shift in how top energy executives evaluate opportunities,” Hickey says. “The pandemic accelerated awareness of geographic flexibility, and that awareness isn’t going away. Executives who understand how to leverage cost of living advantages in negotiations are building careers that deliver both professional achievement and personal financial success.”
The best negotiators aren’t just asking for more money. They’re thinking about what that money actually gets them. And right now, for a lot of energy executives, Philadelphia might be the answer they haven’t fully considered.
Worth running the numbers, at least.
