Re:Three Paths in the Tech Industry: Founder, Executive, or ...
by clairity on Friday September 29, 2017 @01:04AM
(#15362814)
seibel's definition of executives included this tidbit: "politics are usually as important, if not more so", and that seems to be the sticky bit.
the premise underlying your lament is that we should distribute compensation based on direct contribution to the product. but we simply don't distribute value that way. first of all, how would we accurately, objectively and differentially assign contribution for the success of a business to the contributing members? i'd guesstimate that an average US company might distribute value this way: owners 45%, executives 20%, employees 35%. you seem to be alluding to a distribution close to executives & owners 0%, employees 100%. are either of those correct? what would be the fair way to do it? you'd have to answer that before you can figure out how to get there.
and as distasteful as it may be, the way we seem to assign value _is_ political. we assign it based on an ability to take credit and argue for a larger share. we assign it for cultural values, like bravado and charisma. we don't really assign it for economic contribution, like commission for direct sales or compensation for risk, no matter how much that appeals to our rational economic minds. the distribution of value is exactly based on the political skill which you lament.
how do we change that? well, that's like asking how do we upend the currently accepted social hierarchy. and that's a big question.
the premise underlying your lament is that we should distribute compensation based on direct contribution to the product. but we simply don't distribute value that way. first of all, how would we accurately, objectively and differentially assign contribution for the success of a business to the contributing members? i'd guesstimate that an average US company might distribute value this way: owners 45%, executives 20%, employees 35%. you seem to be alluding to a distribution close to executives & owners 0%, employees 100%. are either of those correct? what would be the fair way to do it? you'd have to answer that before you can figure out how to get there.
and as distasteful as it may be, the way we seem to assign value _is_ political. we assign it based on an ability to take credit and argue for a larger share. we assign it for cultural values, like bravado and charisma. we don't really assign it for economic contribution, like commission for direct sales or compensation for risk, no matter how much that appeals to our rational economic minds. the distribution of value is exactly based on the political skill which you lament.
how do we change that? well, that's like asking how do we upend the currently accepted social hierarchy. and that's a big question.