I believe the author is right, this would not be right for every company. However, for small companies with a diverse skill set it is likely warranted or at least fair that everyone is paid the same. I also like the idea of letting the employees vote, because it gives them (A) more connection, emotionally and financially to the companies success (B) enables employees to imagine their self-worth which in turn makes them strive to be better.

One comment I must make is that I do not believe this will work in the long term. I am guessing when the company goes onto hard times there would likely be a unionization to force to keep from a pay cut (which is bad). However, there are cases where because everyone is in it together they are willing to not be paid for a period of time.

An example of this would be an interesting conversation I had with a founding member of Molex (they make connectors in every computer pretty much in the world http://en.wikipedia.org/wiki/Molex) who claimed that the owner came in one day and said there was no way to pay any of them, but if they stuck with him they would have a job for life and the pay would be based on company profits. The old man I was talking to was the janitor from 1940 and was still the janitor in 2005 and was one of the highest paid in the company (ironic huh!).

Anyways, the point is even a billion dollar corporation starts off this way and it seems reasonable enough and good enough to get loyal and hard working employees. There will be a time for change, but for now it is an interesting experiment and will likely work.