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It's about supply and demand. If he really is the best person for the job, then there's nothing to be gained from paying him a higher fixed salary. But if there
by Akababa 6y ago
It's about supply and demand. If he really is the best person for the job, then there's nothing to be gained from paying him a higher fixed salary. But if there's someone else who's even marginally better that you can get for $10M, it's probably easily worth it - for the size of the fund, one person's pay is a negligible amount.
- JanSt 6y agoThat's pure theory. How do you know who is marginally better?
- Akababa 6y agoThat's the fundamental problem of hiring: you have to make educated guesses about who is going to make a better employee. And you should be willing to pay more to hire someone who you believe is better. For some companies, salaries are such a small part of their revenue that it makes sense to offer some candidates a lot more... and if your first choice happens to accept a lower salary, it doesn't really matter - you've saved a drop in the bucket.