Oxide’s compensation model: how is it going?

Original Article ↗ Hacker News Discussion ↗

Sales Compensation Exception

  • Biggest friction point is the carve‑out for sales: base below $207,264 plus variable commission, unlike flat cash comp for everyone else.
  • Supporters argue:
    • Enterprise sales has a strong, near-universal commission culture; without it you simply can’t hire top reps.
    • Sales output is uniquely quantifiable in dollars, enabling tightly aligned, performance-based pay.
    • Commission structures can be tuned (payout over time, clawbacks on churn, no caps, etc.) to limit misaligned deals.
  • Skeptics argue:
    • This compromises the egalitarian narrative and recreates “instant cash for sales vs. long-delayed equity for everyone else.”
    • Industry standard may be path dependence and risk aversion, not proof that no alternatives can work.
    • Variable comp can drive bad behavior (overselling, bad contracts, ignoring long-term product fit).

Equity, Ownership, and Co‑op Questions

  • Flat salary is uniform; equity is explicitly variable, tied to risk and tenure (earlier hires get more).
  • Some commenters see this as standard startup capitalism wrapped in egalitarian rhetoric.
  • Others push: if values are so egalitarian, why not an employee-owned cooperative?
    • Responses: hardware is capital-intensive; Oxide has raised tens of millions, so employees can’t realistically buy out investors; debt-only funding would be too risky.

Support, Admin, and Outsourcing

  • Debate over whether “everyone makes the same” hides outsourced low-paid work (cleaning, reception, admin).
  • Oxide staff say: at current size they have no reception, no cleaning contractor, minimal outsourced functions (e.g., accounting); office chores are shared.
  • Strong disagreement over whether support roles can be “worth $200k”:
    • Critics see support as inherently low-leverage.
    • Others argue high-skill support engineering (debugging, onsite work, preventing churn, feeding back fixes/tools) absolutely justifies that level.

Effects and Limits of Flat Salaries

  • Reported benefits:
    • No leveling ladder drama, fewer promo games, less comp angst.
    • People focus on company outcomes rather than personal raises.
    • Uniform bonuses are rare and tied to company-wide events.
  • Concerns/unknowns:
    • How to handle long-term underperformers without differentiation.
    • Difficulty hiring or growing juniors under a one-size-fits-all salary.
    • Whether the model will survive later-stage profitability and public-market pressures.