> Compensation is not about value provided. It’s only about market rate and convincing the person to stay at the company. I don't think reasonable people would

> Compensation is not about value provided. It’s only about market rate and convincing the person to stay at the company. I don't think reasonable people would disagree with this statement about compensation. That being said, I don't believe it says much. "Only about market rate" allows for tautological reasoning in that the market rate is just whatever you end up getting paid. A stricter definition of market rate as "you get paid what people like you get paid" doesn't seem to say much either: when you get a promotion, did you suddenly start producing more for your employer? Or did they suddenly realize you produced more for them? As most pricing goes, so does employee pay: you're paid the salary to which you agree. You can increase your salary by 1. threatening to quit your current employer unless pay rises or by 2. convincing some other employer to pay you more.