This document describes our vision around the compensation and salaries for members of the Nangu network. This is currently a work in progress and not a final proposal.
Acknowledge experience, responsibility, and impact Everybody within the Nangu network is different. We have different professional experience, assume different levels of responsibility and ownership. Compensation needs to reflect this.
Promote entrepreneurship Members of the network are encouraged to start new enterprises. When they they do this, they should be rewarded for their entrepreneurship and risk taking.
Prevent compensation extremes While Nangu promotes entrepreneurship, Nangu also strives for a balanced and fair distribution of wealth within the network. We prevent extremes of wealth.
Reward continuous activity Members who are actively participating in the network get rewarded for that. Members who no longer participate are not able to indefinitely own a large stake of their enterprise. Their ownership needs to decline fairly to both the member and the network.
Nangu provides compensation in the form of two components. 1. Base compensation. A monthly fixed compensation which factors in a full-time factor, and the job role. 2. Surplus distribution. A yearly calculated participation in profits of the economic entities the individual is member of.
Base compensation is a monthly (or different, depending on local best practices) remuneration of a members work. Base compensation is determined by several transparent factors, such as role in the organization, experience and tenure within the organization. You can find the roles existing in the Nangu network here. Base compensation only gets paid when a member is actively working in a economic entity within the network.
Copy of Roles and base compensation
Surplus distribution rewards the member in addition to their base compensation. Surplus distribution works based on a point system which gets exercised every year. An economic entity within the network distributes a fixed number of points every year. This number does not change and is defined in the statues. These points are distributed amongst members based on their activity, role and other factors. The fraction of total points a member has, over the total points the organization has ever distributed determines the relative share of that member of the yearly surplus distribution. This mechanism allows for members who no longer are inactive to continue to benefit from their impact on the organization in the longer run, while their fraction will dilute over time.
See the example model below for how the surplus distribution will work over time:
https://docs.google.com/spreadsheets/d/1TF9in3lPN7EiWiYoZcD9cFFYfl5zYk5UuHsab9jtaqo/edit#gid=0