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I'm not sure why anyone would take such a deal, it's not uncommon for developers to have bonuses tied to performance but I would expect that to be on-top of a competitive base salary and not in-lieu of it.

That's exactly what I was thinking as well.

In context of CTO-level work, pay-for-performance would also seem to encourage meeting reward goals at the expense of a thousand other unmeasured tasks.

Most CTOs (and generally all senior staff) have incentivized bonuses.

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