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The wealth transfer hypothesis I didn’t really get, but their other hypothesis that it’s a way to nudge non-employees out of the fund is probably right.
by bcherny 2y ago
The wealth transfer hypothesis I didn’t really get, but their other hypothesis that it’s a way to nudge non-employees out of the fund is probably right.
- mgfist 2y agoI think "wealth transfer" is a poor description. Really it's just a way to ensure they have enough money to compensate (very highly) less tenured employees, and to align incentives better (i.e. not just being paid because you're already rich and tenured).
- bcherny 2y agoYes, I agree. That's a less loaded way of explaining it.