[spuz]

I think the point is that Joel tackles the problem of assessing each employee's contribution straight on and unambiguously. I'm sure there is opportunity for negotiation if you believe you have made more contribution than your position on the ladder would suggest. Most other companies won't even attempt to explain how they determine salaries because they are not brave enough to tell their employees "you're good, but not great". Equally, most employees aren't willing to discuss it objectively - we all think we're above average, right? By attempting to put more structure around the process, Fog Creek are making it a lot easier for them and their employees to talk openly about their (and their colleagues') contributions.