4 ms·

At our company, we offer a bonus based on company revenue. If you are part of the company as we grow, you get a direct bonus

• jdmichal 11y ago
  I honestly don't understand why it's any harder than this. If you want people interested in the revenues of the company, then give them a cut in the revenues of the company. If you're private, then it should be in hard cash. If you're public, then stock is an OK substitute because it can be easily liquidated. I suppose the hard part comes when there isn't any revenue to share. Maybe that's why startups use ~~lottery tickets~~ equity to attempt to achieve the same.
  • mentalpiracy 11y ago
    This model is a problem where a company (usually beyond the startup phase) has multiple profit centers. Success in one division can be dragged down by substandard performance elsewhere, if (poor/unethical/ignorant) management chooses to measure it so. I just left a job where my division (which consisted of just 3 people) produced nearly a million in profits for 2015. We were told by management that there would be no raises or bonuses for us, simply because overall company sales were flat. The three of us left. You cannot retain talent if you make your top producers beholden to operations they cannot possibly affect.
    • jdmichal 11y ago
      No doubt. I've been in a similar situation; one of the top-performing groups that got zero reinvestment because all our profits had to support the rest. [0] Unfortunately, I came to the same decision that leaving was the best solution for me. I'm not really sure what the correct response is to these situations, short of removing some of the weight so that the rest can hopefully rise higher. [0] I've discussed one of the symptoms before: https://news.ycombinator.com/item?id=11167407 https://news.ycombinator.com/item?id=11167407