One of the reasons I left my job at Credit Suisse was that I no longer felt I was being paid based on merit. After the global financial crisis<\/a>, the firm\u2014like many others\u2014faced tough times, and overall compensation steadily declined for years.<\/p>\n As a top-three ranked producer, I expected to be compensated accordingly. But I often wasn\u2019t, due to the structural decline of the institutional equities business. Management always had an excuse\u2014whether it was subsidizing the struggling fixed-income department or funding aggressive expansion in India with guaranteed pay packages for new hires.<\/p>\n At first, I did what any rational employee would do: I argued my case. That worked, especially after a senior colleague left, giving me more leverage. Years later, a competitor offered me a lucrative raise<\/a>, and while I didn\u2019t want to move back to New York City, I used the offer to negotiate a matching pay bump from my firm.<\/p>\n Then, the following year, despite strong performance, the firm goose-egged me\u2014offering no bonus at all. The excuse didn\u2019t matter; I knew the real reason. They wanted to \u201cnormalize\u201d my pay after giving me a raise the year before.<\/p>\n Rather than complain, I negotiated a severance package<\/a> and walked away. I knew that if I stayed, I would never truly be paid based on merit again. The writing was on the wall. 11 years later, in March 2023, Credit Suisse group went under. <\/p>\n During Trump\u2019s inauguration speech<\/a>, he spoke about returning to a merit-based system. The idea sounds great\u2014being rewarded based on hard work, knowledge, and skills. What hard-working person wouldn\u2019t want that? But in reality, meritocracy is rarely that simple because human nature is full of biases<\/a><\/strong>.<\/p>\n Most of us work within organizations, and if you examine any<\/em> leadership team, you\u2019ll often find an overrepresentation of certain demographics compared to the general population. Why? Because people tend to favor others who share their backgrounds, experiences, or worldviews. And as a result, there grew an effort to create DEI policies<\/a>, which are now being dismantled everywhere.<\/p>\n A classic example of bias can be seen in the intern selections for past presidents. If you look at the White House intern photos for Obama and Trump, you\u2019ll notice clear demographic preferences. The interns are all likely bright and capable, but with limited spots available, some candidates will always be favored over others.<\/p>\n If the next U.S. president happens to have Taiwanese ancestry, you can bet there will be an overrepresentation of Taiwanese American and East Asian interns. That\u2019s just the way things go. The sooner we accept that bias plays a role in every decision\u2014whether in hiring, promotions, or pay\u2014the better we can navigate the realities of the workplace.<\/p>\n All most of us want is a clear correlation between performance and reward. Earning what we truly deserve is one of the most satisfying feelings. Conversely, being rewarded for reasons other than our efforts and abilities can leave us feeling like impostors who haven\u2019t earned our success.<\/p>\n Do you really want to be rewarded based on your looks instead of your talent, your ethnicity instead of your performance, or your connections instead of your creativity? I don\u2019t, but I also understand not everybody thinks this way.<\/p>\n If you want to get paid more on merit, here are four steps to take. <\/p>\n The first step is understanding that you will never be fully rewarded based purely on merit. Instead, your goal should be to increase the correlation<\/em> between performance and compensation. The sooner you accept that life isn\u2019t completely fair, the better off you\u2019ll be mentally.<\/p>\n Be brutally honest about your abilities. Are you truly making a difference, or are you benefiting from a strong product, brand, or team? Make sure you\u2019re not falling into the\u00a0Dunning-Kruger trap<\/a><\/strong>\u2014the false belief that you\u2019re better than you actually are. Self-awareness is key.<\/p>\n If you believe your employer is underpaying you despite strong performance, stop complaining and take action. Either negotiate for better compensation or move on. Staying in a job where you are undervalued will only lead to resentment and wasted potential.<\/p>\n Join a smaller company, startup<\/a>, or organization where your contributions have a greater impact. The smaller the team, the harder it is to hide. If you\u2019re truly confident in your abilities, consider starting your own business or becoming a solopreneur. In smaller environments, performance is more directly tied to reward.<\/p>\n Athletes are revered for their strength, skill, speed, and agility. We see the countless hours they put into their craft and witness their performance in real time. If they win, they become legends. If they lose, they fade into obscurity.<\/p>\n However, even in sports, raw talent plays a significant role. Being born coordinated with a 6\u20199\u201d frame isn\u2019t merit\u2014it\u2019s winning the genetic lottery. Of course, if that height isn\u2019t put to good use, some might argue it\u2019s more of a burden than a blessing (good luck fitting into an economy-class seat).<\/p>\n Entrepreneurs, on the other hand, are often admired\u2014or at least less vilified than rich corporate CEOs\u2014because they take an idea, go all in, and risk everything to build something from scratch. They work relentless hours for years before seeing meaningful results.<\/p>\n Yet even among successful entrepreneurs, privilege plays a role. Some are born into wealthy families, which gives them the financial cushion to take big risks. Others had powerful and well-connected parents who helped them access elite universities, influential networks, and startup capital. Bill Gates comes to mind. <\/p>\n In the end, merit is rarely the whole story\u2014but without hard work<\/a>, even the most privileged won\u2019t get far. Here’s my conversation with my friend, Shaun Livingston<\/a>, 4X NBA champion with the Golden State Warriors about the importance of making the most of what you got. \u201cYou don’t want to have to coach effort!\u201d<\/p>\nWhy Getting Paid Based on Merit Is Harder Than It Sounds<\/h2>\n
![\"Interns](\"https:\/\/i2.wp.com\/financialsamurai.com\/wp-content\/uploads\/2021\/01\/interns-obama-trump.png\")
<\/figure>\nSimple Steps to Getting Paid More on Merit<\/h2>\n
Step 1: Accept That Merit Alone Won\u2019t Determine Your Pay<\/h3>\n
Step 2: Assess Your True Value<\/h3>\n
Step 3: Leave If You\u2019re Undervalued<\/h3>\n
Step 4: Work Where Merit Matters More<\/h3>\n
Why We Admire Athletes and Entrepreneurs: The Illusion of Pure Merit<\/h2>\n