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> But pretending that your compensation should also include the "Google scale" factor - which you did not contribute to in any meaningful way - is not right.

> But pretending that your compensation should also include the "Google scale" factor - which you did not contribute to in any meaningful way - is not right. If I can make $1 on my own, and you can make $1 on your own, but together we can make $4, we each deserve $2. I don't deserve $3, even though I turned your lone $1 into $4. But I also don't deserve just $1, because I did contribute to the scale factor. In todays world, it seems like we'd each get $1.

IMTDb 5y ago
More accurately: If me and me friends lemonade stands makes $1 million on it's own and your lemonade stands makes $1 on it's own. We bring them together and make $1.1 million because we had an amazing product and you are an amazing sales guy (yay!). How do we divide the extra $100k. Are you pretending that you should get $50k (50 thousands times what you were doing alone) and we should get $50k (1.005 times what we were doing without you) as well ? That does not seem very fair to me at all.
- fragmede 5y ago
  Some of that extra $100k should probably go to the company, but sales is maybe not the best example because salespeople are quite often paid on a base+commission basis and would easily get a fixed percentage of all of their sales for the year. It seems high for sr engineers to make $500k/yr but it should be noted that senior sales people can also make $500k/yr if they're doing well!
- deleted 5y ago
  [deleted]
bialpio 5y ago
Not necessarily. If you add a 3rd person, C, that also can make $1 alone, but $5 with person A, then person A's worth is somewhere between $2 and $3 if my intuition is right (i.e. B would need to agree to uneven split to convince A to work with them). This falls under computational social choice field (coalition formation), and is not a straightforward thing to compute.
cscurmudgeon 5y ago
The analogy doesn't apply. In this case, there are thousands of other employees and you together making $4. Not just two people.

IMTDb 5y ago

More accurately: If me and me friends lemonade stands makes $1 million on it's own and your lemonade stands makes $1 on it's own. We bring them together and make $1.1 million because we had an amazing product and you are an amazing sales guy (yay!). How do we divide the extra $100k. Are you pretending that you should get $50k (50 thousands times what you were doing alone) and we should get $50k (1.005 times what we were doing without you) as well ? That does not seem very fair to me at all.

fragmede 5y ago
Some of that extra $100k should probably go to the company, but sales is maybe not the best example because salespeople are quite often paid on a base+commission basis and would easily get a fixed percentage of all of their sales for the year. It seems high for sr engineers to make $500k/yr but it should be noted that senior sales people can also make $500k/yr if they're doing well!
deleted 5y ago
[deleted]

bialpio 5y ago

Not necessarily. If you add a 3rd person, C, that also can make $1 alone, but $5 with person A, then person A's worth is somewhere between $2 and $3 if my intuition is right (i.e. B would need to agree to uneven split to convince A to work with them). This falls under computational social choice field (coalition formation), and is not a straightforward thing to compute.

cscurmudgeon 5y ago

The analogy doesn't apply. In this case, there are thousands of other employees and you together making $4. Not just two people.