24th
March
2006
Overtime and Startups
“Startups typically attempt to compensate for this effect by hyper-motivating employees using stock options… Typically the managers enforcing the overtime have infinitely more to gain in terms of ownership, and find that the only way to keep the underlings working overtime is to dangle increasingly ludicrous stories of wealth in front of them. The eventual burnout and turnover is not worth the temporary gain given by overtime.”

