>>> And when someone is good at their job, it can still be hard to quantify exactly how good they are, or how much they actually contribute to the business. It’s easier to say, “Okay, let’s have you manage some people,” and pay them more to do that.<p>It <i>is</i> incredibly hard. So there are two approaches - the sales quota style targets, and the shared equity.<p>I think the shared equity works - but that interestingly places a hard limit on the number of employees - shared equity gains need to be a meaningful amount of money. In other words, if you paid out all your profits to your employees equally, how many employees would you actually want to have? Would they want to hire anyone else?<p>Is this a new Coasian limit?