Pros
Most managers support telecommuting and flexible work schedules Most employees are good natured and intelligent. This is what keeps me here. Descent support for education and training both in and outside the company Generous health benefits (currently) All of this helps offset the lower salary compared to other companies. In a nutshell: you forgo extra pay for a nicer lifestyle and good coworkers.
Cons
Management is stuck in a military mentality. They are out of touch with what really goes on. They do not understand that information flows more quickly and freely today with IM, e-mail, and web 2.0, etc than it did when they had controlled it with their memos. Espousing the company line is required if you're in management so you cannot completely trust anything a manager (executive through first line) tell you.