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Hari Raghavan's avatar

Sarah, I love the overall post, and been noodling on a post in this vein "Only hire early employees that find meaning in their work," but I'd love to offer a dissection on breaking bands / levels, as someone who cares a great deal about fairness and everyone-plays-by-same-rules in compensation.

I agree that they should receive special consideration, but I do believe that there should be common and well-understood ground rules. I think it's very much possible to build structure into your compensation framework that accounts for special employees like this.

Later stage public companies consider things like "high impact awards" which I think is a great mechanism to account for this without introducing bias:

1. They fall outside of perf cycles and other "standard" mechanisms of compensation (which one could argue is sort of breaking band).

2. Granted almost exclusively in equity, vesting over the next 12-24 months.

3. Anchored to the employee's level / band in some format -- high impact for an L8 > L6.

4. They should be given proactively, rather than in a negotiation situation

5. When possible and logical, tackle this by instead promoting the employee in an IC track to reflect their outsized leadership / contribution

Curious to hear your thoughts!

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Matt Bendett's avatar

Sarah, just want to say really great and timely note. Our leadership team held a semi-annual workshop on our people today where we use a 9-box with similar methodology. The "mitochondria" analogy is a really helpful lens to use when it comes to thinking about an individual's potential and how to invest in our team. Shared your email with the rest of the group!

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