Friends,

If you ever heard the term ‘never waste a meal’ that’s what I’m coming out the other side of.

I’m back after a week in Brisbane for Something Tech and used every spare minute to squeeze in a meet up, coffee catch up or, you guessed it, a meal.

I could (and probably should) fast for a week now…

If there’s one thing I’ve missed since moving to a beachside town, its the in-person networking. Virtual is great, don’t get me wrong, but in person is better.

I’m coming back tired, but also grateful for the many wonderful people in my network who I get to share so much with. Making more time for in person feels like a good resolution for 2026 (which will be here before we know it).

In other news, I’m eagerly awaiting the return of F1 from its summer break (or ‘winter boredom’ as I see it in the southern hemisphere) and what I’m hoping will be the season we see an Australian F1 champ 🤞

Ok, we’re diving into compensation philosophies with Aubrey this week and tackling some very core truths for how to make them better.

Enjoy,

Matt

I still remember when I read my first great compensation philosophy and wondered how I could ever write something that brought structure and clarity to such a difficult topic.

Since then, I’ve had a hand in writing over 30+ compensation philosophies, and read dozens more.

This deep guide is built with the best of those philosophies in mind, and in a way that enables you to easily build your company’s needs into your very own compensation philosophy.

This step-by-step guide arms you with everything you need (including a ready-to-use philosophy template) to go from blank page, to exec buy-in, to building trust with your people.

GRAB THE PLAYBOOK

❝

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Your Compensation Philosophy Probably Sucks (Here’s Why)

with Culture Amps former VP of People Ops, Aubrey Blanche

CATCH THE INTERVIEW YOUR WAY

Aubrey Blanche is the founder of MathPath and former VP of People Ops at Culture Amp, where she led an industry‑leading effort to build pay equity and earned recognition for achieving one of the smallest gender pay gaps among peer tech firms.

With expertise at the intersection of people, ethics and responsible AI, Aubrey operationalises equity into business systems — transforming abstract values into measurable outcomes. Aubrey’s blunt, data‑driven approach underpinned Culture Amp’s claim: “We fucking won pay transparency”.

Here’s what we covered:

Why compensations must reflect your ideal candidate profile. Not just everybody.
How transparency builds procedural justice, even when outcomes disappoint.
The “Even‑over” framework: balancing priorities without invalidating people.
Simple yet scalable comp philosophies that founders can build in hours.
Why every pay package is a one‑way door, with lasting consequences.
How to co‑design with your employees (without losing accountability).
The one question to provoke honesty from your exec team about your comp choices.

My Key Takeaways:

Compensation philosophies pulled from thin air don’t scale.

Define your comp philosophy with intention by starting with your “ideal candidate profile”, then align pay to what attracts and retains those people. Whether low base/high equity or mission‑first pay, anchor your approach with who you’re trying to bring in rather than random numbers.

Transparency doesn’t just create clarity, it creates fairness.

Explaining “how” decisions were made fosters procedural justice. The “even‑over” mindset lets you say, “We prioritise X, even over Y you care about”, without demeaning someone’s personal priorities. Transparency earns informed consent and builds trust.

Keep it simple, then upgrade as you grow.

Even just two or three principles, things like: targeting market percentiles, values, core pay‑setting factors, can serve as a one‑page comp philosophy that founders can build in a couple of hours. Clarity doesn’t require complexity.

Compensation is deeply human. Speak to the why, not just the how much.

Money covers basic needs. Talking through the “why” behind a number, and what it enables, elevates compensation from transactional to meaningful. Equipping managers with that narrative is a “massive unlock” in making pay less of a distraction.

Compensation decisions are one‑way doors. Tread carefully.

If you just “give someone what they want” without grounding it in principle, you derail future consistency. Every comp package sets precedent. You can’t later undo what you’ve given.

Use your people as partners (not dictators) in shaping your philosophy.

Survey or interview those who fit your ICP about what motivates them, what they understand, what’s confusing or under‑utilised. Don’t build by committee, instead, listen to ground truth while still owning the decisions.

Co‑design makes offers more human and precise.

With candidates, asking what motivates them, not just their number, lets you craft compensation that aligns personal needs with company philosophy. It elevates the offer into a two‑way, consentful conversation.

It’s never “too early” to have a comp philosophy.

Even at a three‑person startup, you can say “we target this market level and skew heavily to equity”. That simple foundation avoids arbitrary choices and keeps you principled as you scale.

Ask your execs what they’d be embarrassed to admit about your compensation.

This potent question surfaces unspoken fears, misalignments, or worst‑case outcomes you can proactively guard against. No principle is better anchored than one built to avoid embarrassment.