Stockholm-based Lovable, a vibe-coding platform, is turning corporate norms on their head by giving all employees an automatic 10% pay raise every work anniversary. This move is significant because it’s rare for startups to offer such generous raises annually, let alone for full-time staff.

The company attributes its ability to do so to rapid revenue growth, with annual recurring revenue of over $400 million and projections of reaching a billion by year-end. Lovable’s approach reflects their commitment to building a long-term company culture where staying power is valued as much as performance.

While this strategy might seem risky for larger companies struggling with cash flow, Lovable argues that it fosters a more stable environment less prone to toxic corporate politics and job insecurity. ‘People get more valuable the longer they stay, and they shouldn’t have to worry about getting a raise or not,’ argued Elena Verna, Head of Growth.

The move is also seen as a savvy retention play against competitors who may be aggressively poaching talent. The philosophy behind this policy aligns with Lovable’s hiring ethos: attracting ‘people with a founder mentality’ who can operate autonomously and grow their impact over time.

Some might argue that, in the long run, equity might be worth more than cash. But for employees facing mass layoffs attributed to AI even as companies post record revenues, this approach is refreshingly rewarding and real.