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My preferred solution is consistent market salaries (a la Joel), annual profit sharing (pro rata based on salaries, applies to management too in lieu of bonuses
by wycats 15y ago
My preferred solution is consistent market salaries (a la Joel), annual profit sharing (pro rata based on salaries, applies to management too in lieu of bonuses), and a 10% employee bonus pool a la 37 Signals in the case of liquidation.
This essentially gives employees regular shares of the annual windfall and a way to share in any ultimate windfall.
I'd rather my employees get rewarded for their participation in company success regularly, rather than asking them to wait for a sale that may never come. And if an exit materializes, they should get something too.
Then again, my opinions on this may change as I gain more experience as an entrepreneur.
- BrainInAJar 15y ago" Then again, my opinions on this may change as I gain more experience as an entrepreneur. " Translation: as I turn in to the typical greedy startup founder shyster
- wycats 15y agoMeh, I doubt it. My opinions will change if the approach I am taking now result in significant failures to hire attract desired talent. My current hypothesis is that potential hires will consider good compensation, regular profit-sharing with the company, and significant upside in the case of an "exit" competitive with (and hopefully much better than) the "normal" offers. if my hypothesis is disproven, I will need to revisit things.