Thoughts on Lou Adler’s blog article on compensation and performance

Usually people seek jobs with higher compensation; however, in this blog Lou Adler explains why it is actually a good thing to be underpaid. Looking for jobs with most upside potential rather than most paid brings more for you in the long run. In fact, I agree with Lou Adler and I believe you should not accept a job with high income if you do not like it, because a career maximization strategy will always end up with maximum income.

He also points out some reasons regarding why it is better not to be overpaid. For example, people will expect more from you or you will never have a honeymoon period and it’s less likely for you to be promoted. Overall, he emphasizes how it is beneficial to be slightly underpaid. But in my opinion being an underpaid employee is not fair for you or other people in your field, because you might first face more offers but what if everyone follows and asks for less income?

He also mentions,”Compensation growth must follow performance, not lead it.” which I strongly agree with because compensation could never really lead performance.

 

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