Re: TW Salaries--Is it me, or are people greedier? (Mild Vent)

["Elna Tymes" <etymes -at- lts -dot- com>]

"Bailie, Rahel" wrote:

> Elna writes:
> "Paying employees as a percentage of revenue is a wonderful socialist
> concept,
> but it doesn't work in real life.
>
> >Isn't that what stock options are all about?

Heh. Have I got a startup for you!

Seriously, paying an employee a percentage of revenue is tying remuneration to
total sales. Some places do that, but mostly those places are in industries
where employees can see a direct correlation between quality of output and
sales, such as fine carpentry, landscaping, etc.  Tying the quality of work of a
writer to revenue figures is much more difficult, because there are so many
other players who help determine quality of the product, and because purchase of
large software packages depends on so many other factors.

Stock options, on the other hand, work only if the company succeeds in the stock
market.  If you've been paying attention to the stock market lately, you know
that the relative price of a stock has only some correlation to whether the
company is doing well, and in some cases no correlation at all.

Elna Tymes
Los Trancos Systems


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