I think it would incentivize bailing out as soon as times get slightly rough, and last thing you want is all your best (and most mobile) employees quitting when you need them most.
For example, if my company has a bad quarter and makes $0 net, does everybody get paid $0? Most people wouldn’t stand for that and would start job hunting pretty quick. The “work for equity at a startup” crowd does it because they can afford to take the risk of $0. Most people can’t or won’t take that risk.
> If you work at McDonalds, in is 100% in your interest to do the absolute bare minimum possible to not be fired
That incentive won't change much under this new system. Joe Average at McDonalds has little to no power to significantly increase the company’s, or even their franchise’s profits. Sure, they could maybe move the needle slightly, but working (say) twice as hard to make 3% more is probably not a rational move.
Usually it's not zero though, like it's base pay + the promise of a maybe-payout down the road if things go really well.
But part of it also hinges on the organization being small enough that individuals can actually make a difference. Otherwise it's back to just being a prisoner's dilemma / shared commons, where the incentive is to slack off and let everyone else carry you.
For example, if my company has a bad quarter and makes $0 net, does everybody get paid $0? Most people wouldn’t stand for that and would start job hunting pretty quick. The “work for equity at a startup” crowd does it because they can afford to take the risk of $0. Most people can’t or won’t take that risk.
> If you work at McDonalds, in is 100% in your interest to do the absolute bare minimum possible to not be fired
That incentive won't change much under this new system. Joe Average at McDonalds has little to no power to significantly increase the company’s, or even their franchise’s profits. Sure, they could maybe move the needle slightly, but working (say) twice as hard to make 3% more is probably not a rational move.