Yeah no doubt you have to have performance based compensation but that's exactly what equity and bonuses are for everyone else. Sales people are special in getting large amounts of cash comp in addition to equity.
>Sales people are special in getting large amounts of cash comp
Not sure what you mean by "getting large amounts of cash comp" as if it was a given. Co-founder clarified their base pay is lower. If they don't sell, they won't get large amounts of cash comp.
What's the alternative idea you have in mind for compensation? How does one re-divide the pie to be more "egalitarian" to the fixed-salary $200k non-sales employees that doesn't lower the compensation to salespeople and make the job less attractive to rainmakers?
Sales people that don't sell just get fired, that's the thing about being such a quantifiable role. So in practice at a startup with a hot product you end up with a team of sales people receiving huge amounts of cash comp.
Everyone in in a well run startup org gets performance based compensation in the form of increases in salary, bonus, and equity.
There's no reason sales people couldn't be compensated in the same way. The reason they're not is just that it's considered an 'industry standard' to reward instantly with cash.
Sales people have themselves a sweet deal they're loath to give it up whether or not it's in the best long-term interests of the company or even themselves. It's not a terrible thing but it does seem an anachronism that will go away.
jasode|10 months ago
Not sure what you mean by "getting large amounts of cash comp" as if it was a given. Co-founder clarified their base pay is lower. If they don't sell, they won't get large amounts of cash comp.
What's the alternative idea you have in mind for compensation? How does one re-divide the pie to be more "egalitarian" to the fixed-salary $200k non-sales employees that doesn't lower the compensation to salespeople and make the job less attractive to rainmakers?
theoryofx|10 months ago
Everyone in in a well run startup org gets performance based compensation in the form of increases in salary, bonus, and equity.
There's no reason sales people couldn't be compensated in the same way. The reason they're not is just that it's considered an 'industry standard' to reward instantly with cash.
Sales people have themselves a sweet deal they're loath to give it up whether or not it's in the best long-term interests of the company or even themselves. It's not a terrible thing but it does seem an anachronism that will go away.