Earlier quoted context omitted.
The team based compensation is interesting but I don't think any company other than some startups would go for it. The main reason would be falling afoul of discrimination laws. The teams would be highly incentivized to exclude people that they thought would be less productive, say a pregnant woman who the team thought would be out for a long period, but the government will be holding the company accountable and not…
Isn't this problem theoretically also suffered by e.g. ~5-person contract/consulting shops?
The more I think about it the more it seems like small consulting shops basically are team based comoensation, but it still ends up with 1-2 people deciding who gets paid what more often than not