Netflix's managers understood that merely adequate performers brings down the performance of everyone on the team. The rockstar principle guiding this says that "In all creative roles, the best is easily ten times better than average." So the goal of a Netflix leader is to create a team made up exclusively of top performers:
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At FAANG-size companies (i.e. over 5K employees), compensation is heavily formulaic. In fact, there is often a separate team — the “compensation committee” — who sets your salary. They take into account your background, interview performance, and level. They give the recruiter a number to go with...
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