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> When it comes time to divvy up the revenue, how do you reflect the fact that companies don't necessarily scale linearly based on the effort and contributions
by jrimbault 10y ago
> When it comes time to divvy up the revenue, how do you reflect the fact that companies don't necessarily scale linearly based on the effort and contributions of their founders and executives?
Do I even have to spell it out? There shouldn't be a 100x factor between the lowest and highest salary. There's no degree of merit that should guarantee that privilege.
Merit doesn't scale linearly, if I wanted to use your language, but there's no reason income should follow the same model. I really want to know what's the reasoning for allowing such ridiculous income gaps. If there's money left at the end of the year and the company doesn't want to invest more (which should be the first thing to do?), why pay the executives even more when the employees would benefit far more from the bonuses.
- maxlybbert 10y agoI'm not saying that a large income gap is desirable. I'm saying it's not obviously wrong to me. And it's somewhat understandable.
- jhall1468 10y agoThere isn't a 100x difference in salary. Bezos salary is something like 80k. His income is derived almost entirely by stock grants, which are awarded based on company performance. The fact that he's a billionaire is because he founded the company.
- jrimbault 10y agoThat's still income. If you want I can rephrase more generally. There shouldn't be a 100x difference in income between People.
- maxlybbert 10y agoDo you have any reason beyond "inequality!"? ( https://www.bloomberg.com/view/articles/2017-04-20/-fight-inequality-is-a-poor-rallying-cry https://www.bloomberg.com/view/articles/2017-04-20/-fight-in... ). ---- I found it from one of your previous replies: > There shouldn't be a 100x factor between the lowest and highest salary. There's no degree of merit that should guarantee that privilege. > Merit doesn't scale linearly, if I wanted to use your language, but there's no reason income should follow the same model. Which is interesting, because it assumes pay is based on merit, but that it shouldn't necessarily mirror merit. I believe that's a consistent world view; but, to me at least, it's not obviously The One Correct View.
- jhall1468 10y ago> There shouldn't be a 100x difference in income between People. That's a political argument, not a valid business argument.
- jrimbault 10y agoYes, of course it's political... What isn't ? A business argument is a political statement. The opposite isn't true though of course.