3 ms·
Expecting to be paid what you bring in - or even remotely close (like enough to cover overhead) - is a frequent misconception of how capitalism works. Good comp
by wuputah 16y ago
Expecting to be paid what you bring in - or even remotely close (like enough to cover overhead) - is a frequent misconception of how capitalism works. Good companies have revenue of $1M/year per employee. Great companies have _profits_ of $1M/year per employee. Do you think you contributed $1M to your company's bottom line last year?
Remember that the goal of all for-profit companies is to generate profit, and that profit is either returned to its shareholders (known as dividends) or re-invested in the company with the hopes of raising the value of the company (and hence the share price). You can get a piece of that pie by taking your hard-earned money and investing in the company you work for. Some companies even let you do this at a reduced price (stock options) or, if you're lucky, include a stock award as part of your compensation. If you're not a shareholder, you shouldn't expect to see any part of the profit: you haven't taken on the risk of investing in the company. (Yes, some companies do have profit sharing as part of their compensation, but that's typically a different way of saying "you get a bonus if we can afford it.")
Granted, many of these concepts are non-existant when you're working for a start-up (where generating revenue, let alone profit, is stalled for months or even years), but the end goal is the same.