At a startup, title is the cheapest form of compensation.
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Inevitably this turns in to demotions or coming up with more grandiose titles later when the titles don’t live up to the increasing responsibilities/demands. “If I had known about Grand Supreme Galactic Pope of Business Development and log scale titles I wouldn’t have taken VP!”
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If the startup is scaling and the person is scaling with it, all is well. If the startup isn't scaling, it doesn't matter. if the startup is scaling and the person isn't scaling into their role, then you need to replace that person.
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A VP eng of a 10 person team might not scale to be a great VP eng of a 200 pax team, but they might still be a great team lead.
Title demotion = employee churn = loss of institutional knowledge = slower growth
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