After the Ladder
21 hours ago
- The traditional corporate ladder, where employees worked their way up for job security, has been replaced by a startup culture that seeks upfront payment and equity.
- The shift creates an appearance of increased economic inequality, but statistics miss the value of safe jobs like sinecures, which are effectively annuities.
- Corporate ladder positions held implicit value akin to 'goodwill,' but takeovers in the 1980s undermined this system.
- Corporate balance sheets ignored debts to loyal employees, making raiders profitable by dismantling companies.
- The new model of startups involves more risk but avoids bad management and corporate politics, though projects in big companies were also vulnerable to arbitrary cancellations.
- The corporate ladder is likely gone for good; the new model is more liquid and efficient, but the financial difference may be smaller than perceived.