Well, this might be working for a team of 10 elite-class programmers... but what about those working to support them?
Like, IT maintenance staff, HR, accounting, marketing etc.
Without either of those, the programmers would not earn a single cent. Now, how do you determine how to pay the support staff? What do you do when one group of HR staff works for a stellar, 100M+$ team and another HR staff group works for a 1M+$ team? Pay the same? Pay different?
How replaceable or irreplaceable are the support staff in this scenario? What's the ramp up time for a new member of the support staff compared to a new member of the team in question?
You pay replacement costs to all of your employees, so that you don't care whether they leave or stay. That way it depends on the market, not their worth to you.
Like, IT maintenance staff, HR, accounting, marketing etc.
Without either of those, the programmers would not earn a single cent. Now, how do you determine how to pay the support staff? What do you do when one group of HR staff works for a stellar, 100M+$ team and another HR staff group works for a 1M+$ team? Pay the same? Pay different?