Salary = Stock?

James Kull
Nov 4 · 1 min read

I think it is a very interesting idea to link income with the company’s overarching achievements. For example, Every employee is paid based off a percentage of stock. So instead of getting a 75K income. You’re income is based off of 75 shares of the company. Not saying you own 75 shares, But saying that that is how much you are paid. Therefore your salary rises and falls based on the company’s performance. On one hand it is hard to plan your life when you are unaware of how much money you will make. On the other, Your work could directly affect how much money you make. I think this system would work well for smaller companies where an individuals work means more. Where is a larger company, if their stock falls, it may not be your fault but now you aren’t making as much money. Another benefit of this I can see if less layoffs. If your salary is proportional to how much the company is worth, they won’t have to be forced a hand of laying of employees just because they make x amount of money.