This article is from WeChat official account:Man and God work together (ID: tongyipaocha) , author: God people were excited, head of FIG. source: vision China

1 million annual salary plus options, why is anyone not interested?

A headhunter told me a story: A privately-owned company to be listed on the stock market recruited a chief financial officer and offered an annual salary of 1 million plus options. The general financial director of a listed company has an annual salary of about 500,000 yuan, and the salary is doubled in an instant, and there are options, which seem very attractive, but in fact, many target candidates have rejected this opportunity from the beginning.

The reason is very simple. It is precisely because the salary of financial directors of most listed companies is not up to this level. The company is not stupid. It is also a company that is planning to go public at this price. The biggest possibility is the company’s previous salary. The financial management is chaotic, and the communication skills with investment banks and auditing are not available. If the company plans to go public within a year, at this time, a financial director who is able to complete the “make-up lesson”, 1 million plus options, is very reasonable Up.

Some readers may want to say that it’s not normal for a salary to be a responsibility. Why are some people reluctant to even talk about it?

The problem is that after the completion of the one-time work of listing, various financial management systems have been established, compliance procedures have also been established, and experience in communicating with investment banks and auditing has also become a normal As the chief financial officer of a listed company, you are not worth 1 million.

Because the salary is rigid, it is impossible for the company to lower the salary. As a result, it will force you away for various reasons. In the end, everyone is unhappy.

Some readers also want to ask, wouldn’t it be good to take the 1 million plus option and take the initiative to leave?

Another problem is that the annual salary has dropped from one million to 500,000. Many people can’t pass that hurdle psychologically. Instead, the entire career is delayed. With a good resume, after experiencing this kind of fluctuation, the extra 500,000 may not be worth it.

Price is the most important mechanism in the market. It stands to reason that there is a corresponding relationship between ability, position and salary, but ability is difficult to assess in a short time. The position may be seriously inconsistent with the actual job content. The only reliable signal is.Only money.

Once this signal is misunderstood or distorted, careers are prone to pitfalls.

Only salary tells everything

In the workplace, everything can be lie, everything can be packaged, only salary is true.

For example, in the Internet industry, the salary system of Ali and Tencent is not only the company’s salary standard, but also the industry reference standard. Your salary corresponds to Ali’s P-level and Tencent’s T-level, which is basically the standard for your job search , Regardless of the job title of the other party.

In the above example, the headhunter finally recruited a very suitable candidate. This person has served as the financial director of four listed companies in the past ten years. After he has retired, he will find the next one. This resume made the proposed listing company very satisfied, knowing that they will not leave it alone, and they will be happy to open a high salary.

The chief financial officer of a listed company and the chief financial officer of a listed company, although there is only a difference of the word “waiting”, and the professional requirements are basically the same, but in essence, they are two different jobs.

This very suitable candidate, whose job content is to help the company meet the financial requirements of a listed company in a short period of time, is more like a consultant, but due to financial confidentiality restrictions, it can only be achieved through the role of an employee.

The extra 500,000 plus options not only increase the content of the job, but also include risk compensation-this kind of high salary takes one or two years to leave, and the supply of jobs in the market is very small. , Candidates may not find relevant jobs for one or two years. Of course, this part of the risk has to be borne by the employer.

Finding a job is risky, and this risk often distorts prices, such as a common phenomenon in the workplace: new employees have higher salaries than older employees, but they have the same level of ability.

The employer is more wronged than you

The salary of new employees is higher than that of old employees. This false price signal is essentially caused by the risk of job-hopping.

All people in the workplace are faced with two choices:

  • Option 1: Stay in the company

  • Option 2: Change to a new company

There are various reasons for switching jobs, but salary is a necessary condition. In theory, as long as the salary of the new company is higher than that of the old company, you can switch jobs, but in reality it is not that simple.

You know the current company salary, colleague relations, leadership relationships, and company development potential. But the new company, except for the salary, you don’t know anything else. Will they be better than your current company? I don’t know, what should I do?

There is a word called “Risk Compensation“, which is to hire your company to give you additional compensation for the risk of job-hopping to reassure you. For a new colleague whose ability level is similar to yours, the part of the extra salary is risk compensation.

In fact, it is the employer who is more wronged than you. It is a trivial matter to spend more money. Every company has a salary system. Although the salary is confidential, there is no impermeable wall in the world, and it will be leaked after a long time. Arouse employees’ sense of “unfairness”. However, if the employer does not pay this “risk compensation”, it will be difficult to recruit the right person.

So the company culture pays much attention to fair companies and prefers internal selection; those well-known companies in the industry do not need to pay or only need to pay a small amount of “risk compensation” because the risks are more transparent.

Fortunately, most price distortions will not last too long. Newcomers who have “risk compensation” will have fewer opportunities and ranges for salary increases in the second year than older employees because of “risk compensation”. It is compensation for uncertainty. You have stayed for a year. If there is no risk, that part of the “risk compensation” will become a salary increase paid in advance. If the risk turns from probability to reality, then you should quit. Instead of a raise.

The supply elasticity of occupations

The price mechanism is the core mechanism of the market economy. The same is true for the labor market. Regardless of everyone’s salary at the time of entry, the elasticity of supply and demand for different positions will widen enough gaps in a long career.

Internet companies have a high demand for programmers, which will push up the salary of programmers. Not only can the original programmers increase their salaries, but it will also allow more people who do not like to write programs to join, but the latter is purely for money Do work that you don’t like and cancel each other out. Only the former is the real one.”Benefit”.

But considering the supply level, it’s different. Different types of programmers have different learning time. Those who become programmers for money are more inclined to choose “crash” positions. But since it is a “crash”, the supply flexibility is greater, and its salary is easy to go up and down.

For positions that require a long time to learn, because the cost of learning is too high, it is difficult to increase the supply, and sometimes even not at all. The salary of the position is easy to rise but not to fall.

What if the social demand for this position declines? Usually, the job demand at this time will be concentrated in large companies. The salary of this type of company is more stable, and it is easy to rise but hard to fall.

So, although the market functions through price information, those who really benefit are those who are in industries or occupations with high learning costs and never look at price information and only focus on their own needs.

false price signals from high-paying people

Everyone wants a high salary, but how does it come from? Many people believe that when the ability is reached, they can naturally find a high salary. This is the idea that value determines the price.

However, prices not only reflect value, they are also affected by the relationship between supply and demand. In the labor market, because the supply and demand of low- and medium-paid labor are large, the value (namely ability) has a greater decisive influence, but In the high-paying market, supply and demand are very small, structural fluctuations are very large, and the relationship between high wages and ability is relatively small.

Take the salary of corporate executives as an example. The decisive factor is not the management ability, but whether the previous resume has served a company of similar size, especially the same position in a large company.

During the economic upturn, the number of large companies will inevitably grow faster than the supply of applicants with experience in large corporate executives(The latter takes time Accumulation), companies have to pay high salaries to find people. Even if the executive makes a loss and closes the company, he still gets a high salary when he pats the next one.

However, during the economic downturn, the number of large companies has shrunk, and there are more and more executives. Supply and demand reversed in an instant. I often see articles of this kind. Executives with annual salary of hundreds of thousands or even millions of people correspond to The employment demand scene is very narrow. Sometimes accidentally unemployed, you may evenI couldn’t find a job for the first one-third of the annual salary, and my life suddenly became “trapped”.

This kind of story often makes readers feel hypocritical, it is nothing more than lowering the standard of living, how can you “cannot live”?

This is the function of the “price signal”. What kind of house we buy, what car we drive, what restaurant we go to, and who we interact with are all under the direction of the “price signal” of income.

The price signal of high-paying people does not completely represent ability, but “price signal” has a great impact on life. Houses, cars, seats, tickets, and wives are all built on this fragile supply and demand relationship. Crisis may come at any time.

This article is from WeChat official account:Man and God work together (ID: tongyipaocha) , author: God people were excited