[jobead]

Don't the salaries at AppAmaGooBookSoft (sorry, patio11's spelling is canonical here) themselves include a risk premium that is incenting the people there to stay instead of going to work at a small company with the opportunity to topple one of them?

How do you model those risk premiums against each other? It seems like they should both go infinity in order to keep anyone from ever leaving anywhere.

[jmeyer2k]

It's a market for risk. Risk premiums are worth what tech companies will pay for them. If it's more expensive to find a replacement than pay a risk premium, tech companies should and will pay the risk premium.

In the long run, the price of the risk premium = the cost of replacing the employee.