4 ms·
"And since we have no intention of selling 37signals or going public" It seems to me to be unfair to create incentives like this without intending on ever payi
by daimyoyo 15y ago
"And since we have no intention of selling 37signals or going public"
It seems to me to be unfair to create incentives like this without intending on ever paying them out. I'm glad that they are creating this now instead of if and or when they are acquired, but I still think equity grants are a more fair way of handling incentives.
- jasonfried 15y agoThis is one of the reasons we don't formally discuss or disclose this plan when hiring people. It's not pitched as an incentive to work at 37signals. It's a bonus, purely a bonus, if/when something very unlikely happens. We do not factor this in to the overall compensation package when making people offers or giving people raises.
- smackfu 15y agoDo you think this detailed plan is even worthwhile then, rather than just a stated commitment to pay out at least 5% of the sales price to employees?
- jasonfried 15y agoIt's not terribly detailed. It's a few paragraphs long with a couple of pages of standard legal boilerplate. Employees don't have to sign anything or sign up for anything. It's better for everyone that it's in writing.
- nknight 15y agoWhere does fair enter into this, exactly? The employees are paid for their work, and this isn't dangled over them to try and lower salaries. This is more like the founders making provisions to guarantee a gift to current employees in the event of a sudden windfall. Maybe even a form of severance pay in case an acquiring company starts laying people off. I think it's a pretty pointless program, but I don't see anything unfair about it.