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It would be interesting to see how the company would have performed had he raised employees equity instead of salary? I think having equity incentivizes employ
by ayushchat 5y ago
It would be interesting to see how the company would have performed had he raised employees equity instead of salary?
I think having equity incentivizes employees to focus more on the welfare of the company than a fixed salary.
I may be wrong though
- muskox2 5y agoI think this is true, but all things being equal employees will value $1 in salary much more than $1 in equity. So to get the same impact of higher salary, you have to give a large amount of equity. There are pros and cons.
- ayushchat 5y agoyes, agreed. But increasing salary = increasing worker satisfaction at current position, not necessarily a push for future growth and subsequent stock growth Increased equity = Push employees to work for company stock growth. But yes, $1 equity is not same as $1 salary to the employees