Herein we discuss some core ideas for making sure your compensation program works for your and your employees. Ideas include:

* Money is no substitute for money. People might like the mission, but they need to get paid right. Never think your mission can cover a pay gap.

* The All Hands Test - you will never have to defend an individual comp decision at an All Hands, but you should be able to

* Comp can make people furious, but it usually won’t make people ecstatic - the downside is much higher than the upside

* Never think a young employee is lucky for how much they’re getting paid. The market is the market.

* It’s critical that you uphold the mechanics you agreed to and not change them (e.g. if company growth means people are getting paid a ton).

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