You would be surprised about how few "responsible" startups there are. Most will never be responsible until they're under scrutiny. I've been with a few that actively derided the idea of compensating employees who were underpaid during the initial growth phases. They thought that because they'd agreed to help "build the business" that nothing more was owed in better times.
One of them got a lot of press as a successful startup and landed several new large contracts. Which is why, after a year of executive self-congratulations and bonuses, their lead developer, who had saved several failed projects singlehandedly, left for more realistic pastures. They only brought him up to just below market when he talked about leaving, had no intentions about rewarding him for past underpaid accomplishments (which were obviously investments on his part), and despite their poor compensation packages had an overly strict culture for non-executives. Management compensation was top priority, and retention was assumed - they thought people would just stay despite having better alternatives. Even if he stayed, he'd have to watch other people get screwed. He wasn't the first, and doubtless he won't be the last rat to abandon that ship. I left as well, seeing that they really didn't care about anyone who didn't have ownership and a briefcase.
It's really not that uncommon. Being at the top of a company requires only one of three things: luck, lies ("charisma") or capital. Quite a lot of new business owners get mislead by their own kool-aid. They start believing that their vague "vision" is the most important thing and treat the people who do the real work as replaceable cogs. They give no thought to training costs or productivity and have high turnover rates. Merely treating the staff better could have a huge and positive financial impact. They'd probably know about these management issues if they didn't defensively fire people who voiced dissent. But a fool and his competent staff are soon parted.
I agree with the overall sentiment of your comment. However, I think psychologists would disagree with the idea that charisma -> dishonesty, and I think holding such a viewpoint is damaging to long-term success.
One of them got a lot of press as a successful startup and landed several new large contracts. Which is why, after a year of executive self-congratulations and bonuses, their lead developer, who had saved several failed projects singlehandedly, left for more realistic pastures. They only brought him up to just below market when he talked about leaving, had no intentions about rewarding him for past underpaid accomplishments (which were obviously investments on his part), and despite their poor compensation packages had an overly strict culture for non-executives. Management compensation was top priority, and retention was assumed - they thought people would just stay despite having better alternatives. Even if he stayed, he'd have to watch other people get screwed. He wasn't the first, and doubtless he won't be the last rat to abandon that ship. I left as well, seeing that they really didn't care about anyone who didn't have ownership and a briefcase.
It's really not that uncommon. Being at the top of a company requires only one of three things: luck, lies ("charisma") or capital. Quite a lot of new business owners get mislead by their own kool-aid. They start believing that their vague "vision" is the most important thing and treat the people who do the real work as replaceable cogs. They give no thought to training costs or productivity and have high turnover rates. Merely treating the staff better could have a huge and positive financial impact. They'd probably know about these management issues if they didn't defensively fire people who voiced dissent. But a fool and his competent staff are soon parted.