Stockholm-based AI firm Lovable adopts automatic 10% salary raises to combat corporate politics
Lovable, which reported $400 million in annual recurring revenue in March, aims to sidestep performance reviews by sharing wealth directly with staff.
Stockholm-based vibe coding platform Lovable is implementing a policy of automatic 10% salary increases for all employees on their work anniversaries. The company states this initiative is designed to bypass traditional corporate politics and improve retention by sharing wealth directly, rather than relying on stock options or contingent vesting schedules.
In the typical U.S. corporate environment, employees do not receive built-in annual raises unless they are unionised; even then, a 10% increase is usually distributed over several years. Most startups prioritise equity compensation over cash raises because equity does not incur immediate cash outlay, whereas base salary increases represent permanent overhead.
Lovable, which reported $400 million in annual recurring revenue in March, plans to reach over 225 employees by year's end. The firm currently employs 146 people and lists 78 open roles. CEO Anton Osika and Head of Growth Elena Verna have publicly endorsed the policy, arguing that employee value compounds with tenure and should be recognised without requiring annual re-proving of worth.
The move contrasts sharply with the prevailing startup grind culture, where job security is often tied to performance reviews rather than tenure. The broader tech sector has recently faced criticism for mass layoffs attributed to AI advancements, even as companies report record revenues and profits, making Lovable's approach a notable deviation from current industry trends.
While Lovable has not yet responded to a request for comment regarding the specifics of the implementation, the company notes that such a raise is made easier by its rapid revenue growth. In some months, the firm has said it grew annual recurring revenue by $100 million, allowing it to share the cash with those creating it.
Critics of the current model argue that employees are often expected to work excessive hours in hopes of stock value appreciation upon an IPO. Lovable's strategy suggests that cash is certain, while equity is a bet, offering a refreshing alternative in a market where workers have been subjected to uncertainty despite corporate profitability.
