Let’s talk about founder compensation
auren.substack.com
Let’s talk about founder compensation
1–10 of 94 posts
Re: Let’s talk about founder compensation
#2I really hope DAOs will improve on that situation.
Re: Let’s talk about founder compensation
#3Funny when someone comes to the shocking realization of what's happening to the workers under them, only when it happens to themselves. "People are getting paid less than they're worth unless they renegotiate or leave! We must do something about this!"
Re: Let’s talk about founder compensation
#4Funny when someone comes to the shocking realization of what's happening to the workers under them, only when it happens to themselves. "People are getting paid less than they're worth unless they renegotiate or leave! We must do something about this!"
I hear this kind of complaint so many times especially from individual contributers but honestly can you realistically imagine a world in which this wasn't the dominant form of compensation adaptation model?
For the most part, your salary is affected by supply and demand. As soon as you leave your job, the demand to fill your position goes up. If you don't leave, the demand stays the same. The demand to keep your position filled won't be as high as when a vacant position needs to be filled. Am I missing something?
Re: Let’s talk about founder compensation
#5Meh this matters if the founder has little equity, but not too much if they already own half the company.
If a founder has been diluted down then they will have every reason to move on.
Re: Let’s talk about founder compensation
#6Amazing that he goes into such detail about how unequal pay should be slightly less unequal.
People are always going to take advantage of other people if they can or if things are structured that way. It is traditional for VCs to take advantage of founders. It is harder for them to take advantage of people who know there is already funding and are coming in after.
And VCs will go into excruciating detail rationalizing all of this.
What about the programmers who are actually building the software and often getting a pittance in relative compensation even though the business is 100% reliant on them to solve most of the problems (which are technical).
Re: Let’s talk about founder compensation
#7I’m sure any replacement CEO would love a pay structure where the guaranteed comp is 25% but the bonus matches founder gains.
Re: Let’s talk about founder compensation
#8I really hope DAOs will improve on that situation.
What is a DAO ?
Re: Let’s talk about founder compensation
#9Funny when someone comes to the shocking realization of what's happening to the workers under them, only when it happens to themselves. "People are getting paid less than they're worth unless they renegotiate or leave! We must do something about this!"
I hear this kind of complaint so many times especially from individual contributers but honestly can you realistically imagine a world in which this wasn't the dominant form of compensation adaptation model? For the most part, your salary is affected by supply and demand. As soon as you leave your job, the demand to fill your position goes up. If you don't leave, the demand stays the same. The demand to keep your pos…
I guess your missing the elasticity in your equation.
Your statement makes sense if there are only a handful of people in the market that can provide what you provide, but for a job that can be done by thousands it doesn't hold.
Re: Let’s talk about founder compensation
#10I really hope DAOs will improve on that situation.
Yeah I'm usually very anti crypto anything but DAOs sound like a promising concept. Might be a great way to get rid of VCs and run international workers coops with initial funding though ICOs. A DAO based startup studio / incubator would be interesting too.