Equity on Demand: The Netflix Approach to Compensation Harvard Case Solution & Analysis

Netflix was amid a small group of Silicon Valley companies to materialize from the technology bubble of the delayed 1990s a clear victor in terms of market share, growth, and profitability. That Netflix was able not only to flourish but also to prevail over this contest was mainly attributable to the culture of independence and responsibility Reed Hastings. The company embraced a string of unique employment practices that were meant to attract, retain, and inspire the kind of employee that Netflix valued, to cultivate this culture.

Among these practices was a reparation system with several characteristics that are unconventional. Whereas most businesses supplied a predetermined mix of cash and equity-based awards to compensation bundles, Netflix turned the model on its head and enabled workers to request their own mixture. Management was interested in finding out whether this practice supported or detracted from the firm's primary goals for its workers.

PUBLICATION DATE: January 15, 2010 PRODUCT #: CG19-PDF-ENG

This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT

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Equity on Demand: The Netflix Approach to Compensation

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