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If the employee isn't adding value that is >= to their compensation, there is always an incentive to fire them. The point of this is to encourage those providi
by the_watcher 13y ago
If the employee isn't adding value that is >= to their compensation, there is always an incentive to fire them. The point of this is to encourage those providing a value greater than the value of the DSP to stick around.
- notahacker 13y agoThere's unique factors at play here, like the fact that an early-hire CTO can increase his personal equity stake by 50% a couple of months before IPO by persuading the board that five of the first few developers who've worked at sub-market salaries for the past six years are superfluous to requirements. The whole point of options and a vesting schedule is the assumption that employee number 5 contributes a lot more to the value of the company in those early years than they get paid for it. This system incentivises the firing of people who add proportionally less value to a 1000 person company than they did to a 10 person; i.e most developers, including those who have more than justified their compensation in the past and totally deserve their current salary.