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Oxide’s compensation model: how is it going?

oxide.computer

191–200 of 241 posts

Re: Oxide’s compensation model: how is it going?

#191
post #143

Earlier quoted context omitted.

Also some of their customers are airgapped so if they’ll let you touch the machine that’ll make debugging a lot easier.

> some of their customers are airgapped I'm not doubting you, but where did you hear that? Wow, what kind of data center installation is air-gapped in 2025, except for ... maybe military industrial complex (maunuf + military) and spy agencies?

They mention it a few times on the podcast

Re: Oxide’s compensation model: how is it going?

#192
post #48

I like it a lot and their thoughtfulness about it but it's a little hollow when they're spending investor money. I'd like to see how this model evolves once they're off the vc teat: when there's a bottom line to answer to, does the dynamic shift? Everyone has an on-site chef when the money vc hose is on. Valve's flat structure was exciting because it wasn't 3 vc's in a coat larping as a business, it was an actual pro…

I imagine they had to introduce variable comp for sales because they weren’t able to hire even a single good enterprise sales rep for a flat $200k. It’s not a culture thing, it’s just the market rate for the role. If they paid a flat $500k they’d stand a better chance of avoiding variable comp.

It's just an industry standard. They are merchants, they could just buy the servers and resell them, so they negotiate a comission/a lower than listing price.

If you actually considet all of the merchants, what's actually uncommon is to be anything other than 100% commission/margin based.

Re: Oxide’s compensation model: how is it going?

#193

I understand that currently (and maybe because you are "only" 75 employees) it feels fair for everyone, or people are even feeling bad about it. Also it sets the bar high when hiring someone, I get that. But what if in a year or two a person is not so great anymore? Just by my own past work experience at 2-3 companies, there were always some colleagues that were definitely not good at their job (and this was pretty m…

The thing is, our team has extraordinary breadth so everyone's good at some things more than others. What matters (and what we select for) is curiosity and openness to learning.

I previously worked on distributed systems with lots of immutable state. Here I've learned tons about distributed systems that have lots of mutable state, and it's made me realize immutable state is easy mode.

Re: Oxide’s compensation model: how is it going?

#194
Variable pay for sales roles is the driver of vast amounts of broken behaviour. You've seen it it your own companies, but also in the various financial crashes. It immediately sets everyone's goals in non-coherent directions. Wonder why your favourite software is getting so crap? Pressure from "sales execs" cos they are getting a bonus for the poorly thought out, inconsistent crappy feature they sold to some enterprise.

Re: Oxide’s compensation model: how is it going?

#195

Earlier quoted context omitted.

> The completion of a formal education is much more important than the institution From https://rfd.shared.oxide.computer/rfd/0003 -- which was top of mind since I started looking at the postings after reading the article. ;-)

It's not saying that doing so is a requirement, it's saying that, if you have a degree, the fact that you have one is more important than where it is from. I dropped out of school, had terrible grades, and ended up going back and finishing, but still got like a 2.something GPA. The subject of school never came up. When I review applicants, I don't rate them poorly if they didn't get a degree.

That's totally fair! I just sympathize with gp as the quoted section and the sentence that emphasizes "completion" from the last paragraph are easy to misinterpret as "you should have finished a four-year degree".

e: hopefully clearer, but tired and still commenting on the internet, so who knows. =)

Re: Oxide’s compensation model: how is it going?

#196
post #112
post #80

Earlier quoted context omitted.

I can't speak for everyone at Oxide, but I'm practically certain that none of us wants to live in Sunnyvale.

Haha I can tell South Bay isn’t quite communist enough for the People’s Republic of Berkeley compensation model. :)

God you are an unpleasant person. If this compensation model gets rid of people like you, it might be worth it by itself.

Re: Oxide’s compensation model: how is it going?

#197

> One of the more incredible (and disturbingly frequent) objections I have heard is: "But is that what you’ll pay support folks?" I continue to find this question offensive, but I no longer find it surprising: the specific dismissal of support roles reveals a widespread and corrosive devaluation of those closest to customers. The easy way to "pay everyone the same amount" when you sorta don't want to is to outsource…

To a certain extend that is likely what they do. But I don't really think this is bad. Its impossible the force anybody else to have the same compensation model, and its impossible not to work with many, many other companies and people. This applies to many people who make under 200k and many who make over 200k.

So in some sense its a decision of who is one the core of the team and who is in a different kind of relationship. And its fine to have those different kinds or relationships.

At some point the company might be big enough to have somebody doing or organizing cleaning full time, or work reception full time. By that time that person will be valued the same as everybody else.

This make the decision on what to make internal and external very meaningful. And it makes it so that person will be empowered to make the needed changes in order to do their job very well.

Lets see for how long they can keep going with this strategy.

Re: Oxide’s compensation model: how is it going?

#198
> And, importantly: if/when those folks are making more than the rest of us, it’s because they’re selling a lot — a result that can be celebrated by everyone!

This is such a toxic mentality. Yes sales always sits at the end of the value stream, but they aren’t selling thin air. Everyone in the company contributes to making that sale possible. The waiter gets a tip because “everything tasted amazing” but the chef gets stiffed because “he just made it”

As always, they have equality but some are more equal than others. And they are transparent, but obviously not on the parts where transparency would expose the inequality because that wouldn’t be popular.

Re: Oxide’s compensation model: how is it going?

#199

> And, importantly: if/when those folks are making more than the rest of us, it’s because they’re selling a lot — a result that can be celebrated by everyone! This is such a toxic mentality. Yes sales always sits at the end of the value stream, but they aren’t selling thin air. Everyone in the company contributes to making that sale possible. The waiter gets a tip because “everything tasted amazing” but the chef gets…

You can’t hire sales people without a carrot, and the variable component is very much a part of the sales mindset since they are all used to have immediate feedback on their success and have an unshakable belief that they control how much they earn by succumbing to the “gotta catch them all” impulse.

It’s addictive, and, ultimately, far more toxic than what you describe.

Re: Oxide’s compensation model: how is it going?

#200
post #141

Earlier quoted context omitted.

Almost certainly. You really think they are paying their cleaners and receptionist $200k?

At 75 headcount I very much doubt you need either of those on staff full-time? You can certainly make do without if your goal is to keep paying everyone the same. I think in a smaller company I was part of all support tasks were rolled into a single ‘office manager’ role. When it’s all combined like that 200k becomes easier to justify.

That's not an efficient way to spend money. Fine if that is not your goal I guess, but there's no way this lasts if/when they have 500 employees and go public.
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