[maxbrown]

Naturally a 20% salary reduction!

Although occasionally this may be the case (pay cuts), it seems clear that the employer absorbs the risk of entering into contract with the employee at a certain time, with a certain market price. Interesting that the employee gets to partake in the upside but the employer gets the downside, with the exception of course of the employee getting fired.

I wonder - if there were really a way to gauge the current market for X talent (sort of a glassdoor salary index) - could employers purchase "insurance" or hedge their hiring price with "employee securities"?