An owner pays Richie $1 million a year, but his motivation dies because salary doesn't tie to success. Give employees real equity or shadow stock instead. When they win if the company wins, they stay hungry.
Chapters
Financially, I think it makes sense to incentivize people by giving them even a small fraction of the pie rather than paying them a fixed salary. So if I pay Richie even a lot of money, like a million bucks a year. But it does not depend on how you perform what you do. Okay, you have to appear at your work from nine to five or whatever, and you have to appear as you work. But if it's a fixed salary, however excited you are initially, this excitement will, over time, disappear. But if my goal, let's say I'm the owner of this project and your goals are the same, which means that you, in fact, benefit from this project being successful, then our incentives will be aligned for longer. That is also why I think in many large companies, they create what is known as shadow stocks.