Suppose I only have one level of employee and they’re all in CO.
To keep the math and my HR processes simple, I pay them all $100K/yr and grant them all initially $200K in shares plus $100K/yr in refresher shares, vesting over 4 years. Someone who just joined will make $150K in the next 12 months. Someone who joined 2 years ago will make $200K in the next 12 months if our stock is UNCH since they joined. If it doubled since then, they’ll make close to $300K in the next 12 months.
Bam, my range is $150K-$300K/yr and I have the fairest, most equitable pay structure I could imagine. Layer on top of that complexities of people actually having different levels of productivity, different amounts of unvested stock appreciation, and you can have even wider spreads. Add to that having had to “buy out” someone’s unvested shares or bonus at another company to get them to switch to yours and the spread gets wider.
To keep the math and my HR processes simple, I pay them all $100K/yr and grant them all initially $200K in shares plus $100K/yr in refresher shares, vesting over 4 years. Someone who just joined will make $150K in the next 12 months. Someone who joined 2 years ago will make $200K in the next 12 months if our stock is UNCH since they joined. If it doubled since then, they’ll make close to $300K in the next 12 months.
Bam, my range is $150K-$300K/yr and I have the fairest, most equitable pay structure I could imagine. Layer on top of that complexities of people actually having different levels of productivity, different amounts of unvested stock appreciation, and you can have even wider spreads. Add to that having had to “buy out” someone’s unvested shares or bonus at another company to get them to switch to yours and the spread gets wider.