Could a Lovable 10% pay raise be the antidote to a dangerous culture?

Stockholm-based vibe-coding platform Lovable is grow money at an astronomical rate – is doing what few US companies, startups or otherwise, would consider: voluntarily pledging 10% of annual salary to all employees on anniversaries.

In US companies, workers don’t get a raise unless they agree, and even then, a 10% raise across the board is spread over several years of the agreement, not awarded annually.

Although many companies have plans to share stocks and profits, the difference here is that Lovable is sharing the wealth as a direct promotion, not based on a schedule or an employee pushing money to convert stock options into real shares.

“This program reflects the sustainable company we want to create. It applies to all full-time employees who meet job expectations on their anniversary. The longer a person stays at Lovable, the deeper they understand the company, contribute to its growth, and change its culture,” Maryanne Caughey, head of Lovable’s human resources team, told TechCrunch.

Now, it is true that such a successful promotion is made easier – perhaps even possible – for a small company. Lovable currently has 200 employees but plans to grow to 400 by the end of the year, hiring across the board, Caughey said.

However, the startup is raising money so quickly that Lovable is able to share revenue with developers. In some months, he says, it grew the annual recurring revenue by $100 million. Lovable said in March that it had already crossed $400 million in ARR and, sometimes, expected to hit $1 billion in ARR by the end of the year. Lovable launched its vibe-coding tool in late 2024 and has said tears since then.

For many companies, cash may be too valuable to save on fixed income. Equity payouts don’t take money out of their pocket right away. This is the main reason many startups don’t switch to employee raises and options instead of raising base salaries.

The bottom line is that this represents a change in the way Corporate America treats casual workers. Here’s what happens: hiring (usually through a tedious, multi-step, months-long process) followed by an annual review. The message is this: prove yourself qualified to get the opportunity, and keep proving yourself over and over again to keep your job. If you dream of promotions and promotions, go above and beyond first, make your case, then…we’ll see.

The nature of starting a mill is very difficult. The trope is that employees have to sleep on the job in order to increase the value of their stock, then they wait for the company to go public or give them some kind of charity (the opportunity to sell their shares before the company’s IPO).

So, can Lovable’s strategy include corporate politics that lead to unemployment and corporate infiltration over time? Head of Lovable Development Elena Verna argues that it can be done.

“Because we don’t take saving lightly. It’s considered an extra thing that is quickly recognized and rewarded. You don’t have to prove that you’re important in any situation. So everyone can focus on doing the best work of their life, not managing optics,” he said: they write in LinkedIn.

Founder CEO Anton Osika added on Twitter: “Because people get great benefits when they stay for a long time, and they don’t have to worry about whether they will be promoted or not.”

It is also true that this is a smart storage game. Lovable is almost completely immune to aggressive attempts from competitors.

“We hire people with innovative ideas who can work independently, deliver meaningful work quickly, and grow their results over time. We want to reward them,” Caughey said.

The fact is, if Lovable’s price continues to rise, the capital increase may be more reasonable than a 10% capital increase. However, money is guaranteed, while money is a bet. And in a world where workers are being made redundant by AI – even as their companies post revenue and profits – such strategies are refreshing.

Note: This article has been updated to include comments from Lovable and her most recent staff.