We also did not have a bonus system. If your employees are adults who put the company first, an annual bonus won’t make them work harder or smarter. We handled equity compensation in a completely different way than most companies do. We allowed employees to tell us what portion of their compensation they wanted in stock options, and rather than adding those onto their salary, the amount was in lieu of a portion their salary. In addition, rather than using stock options as “golden handcuffs,” we imposed no vesting period. Options would vest on a monthly basis. Those options were available to
...more
