[kybernetikos]

I wouldn't make the point quite like you have, but yes. Employees lose a lot less than the owner if the company is run into the ground because it's paying the employees too much.

That's not to say that that is what is happening in this situation - I don't know, but while I love the transparency aspect, I would not expect the 'allow employees to choose their salary' to reliably create a good outcome for the company. (Having said that, allowing management to set salary secretly doesn't always work great either.)

I expect that it only stands a chance of working well if your employees are genuinely bought in to the whole idea of the company.