Herein we discuss some core ideas for making sure your compensation program works for your and your employees. Ideas include:
Money is no substitute for money. People might like the mission, but they need to get paid right. Never think your mission can cover a pay gap.
The All Hands Test - you will never have to defend an individual comp decision at an All Hands, but you should be able to
Comp can make people furious, but it usually won’t make people ecstatic - the downside is much higher than the upside
Never think a young employee is lucky for how much they’re getting paid. The market is the market.
It’s critical that you uphold the mechanics you agreed to and not change them (e.g. if company growth means people are getting paid a ton).
