October 30, 2022
Illustration: sesame/DigitalVision Vectors/Getty Images; Protocol
Welcome back to our Workplace newsletter. Today, a new report shows what founders are really paying themselves, and experts weigh in on how founders can avoid common mistakes when deciding on their salaries. Plus, Elon Musk’s reign at Twitter is “already a bloodbath.”
“How much should I pay myself?” is one of many sticky questions that arise when founding and scaling a company. A new report from accounting provider Pilot shows how 500 startup founders are answering that question.
Know that 46% of founders are making less than six figures. That range was more common among bootstrapped founders, 69% of whom reported paying themselves less than $100,000, compared to 42% of founders who had raised VC funding.
Don’t be a martyr. Three percent of VC-backed founders and 18% of bootstrapped founders reported paying themselves a $0 salary. But founders should pay themselves a living wage that covers their expenses, whether they’re single and living with roommates or paying a mortgage and supporting a family.
Get help from your board. “Having a board makes this way easier,” Du Bey said. “If we didn’t have a board, I would probably feel weird about it, honestly.”
Remember that salary is only one component of founders’ long-term wealth. Only 2% of VC-backed founders and 6% of bootstrapped founders reported paying themselves $300,000 or more.
Elon Musk’s reign at Twitter is “already a bloodbath,” reports Protocol chief correspondent Issie Lapowsky. Musk completed his $44 billion acquisition of Twitter on Thursday night and quickly fired CEO Parag Agrawal, CFO Ned Segal, top policy exec Vijaya Gadde, and general counsel Sean Edgett.
Musk has reportedly already named himself interim CEO and tweeted Friday that he would wait to form a “content moderation council with widely diverse viewpoints'' before reinstating any banned accounts. It’s unclear how he’ll run the company without several of its most senior leaders (though here’s one idea).Read the full story.
No two recessions are alike. In fact, eight in ten workers reported looking for a new job before the upcoming market shift. Learn what HR can be doing to ensure meaningful retention today and in the near future.
What counts as workplace misconduct when you don’t have a workplace? A new report from the sexual harassment and DEI training provider Traliant asked 2,000 U.S. workers and found that 27.4% of their leaders haven’t defined a workplace misconduct policy when it comes to hybrid and remote work.
Anyone else having a bad case of Great Resignation whiplash? It’s hard to keep up with which tech companies are growing, shrinking, floating, or sinking. We’re here to help.
⬇️ Unions said that Standard General LP didn’t alert the FCC of planned layoffs connected to the private equity firm’s $5.4 billion acquisition of the TV broadcasting company Tegna, Bloomberg reported.
⬇️ Elon Musk planned to start layoffs at Twitter this weekend, according to The New York Times, citing anonymous sources.
⬇️ The African genomics startup 54gene’s valuation has been slashed by two-thirds, to about $50 million, in the wake of its CEO departing and the layoff of 55% of its employees, TechCrunch reported.
In conversations around pay equity and pay transparency, the stakes are high and the responsibility is stressful for HR. Learn how to confidently and capably discuss these topics with everyone from executives and managers to entry-level employees with three important steps.
A roundup of workplace news from the farthest corners of the internet.
Anti-Semitism is on the rise. Here’s how execs can respond to it. (Chief)
What does the VC slowdown mean for young investors’ careers? (The Information)
How to build company culture when your team is remote. (Forbes)
Thoughts, questions, tips? Send them to firstname.lastname@example.org.