To ensure genuine collaboration across funds, Centerbridge structures compensation so a "substantial minority" of an individual's pay comes from other areas of the firm. This economic incentive forces a firm-wide perspective and makes being "part of one team" a financial reality, not just a cultural slogan.

Counterintuitively, paying employees significantly more than the market rate can be more profitable. It attracts A-players and changes the dynamic from a zero-sum negotiation to a collaborative effort to grow the entire business. This fosters better relationships and disproportionately larger outcomes where everyone wins.

Ask every team member, "How do you make the company money?" For non-revenue roles like a camera operator, frame their contribution in terms of preventing costly mistakes (e.g., wasted footage, delays). This fosters a deep understanding of their impact and gives their work more meaning.

Ally reinforces its "brand is everyone's job" mantra by giving every employee 100 shares of company stock annually. This creates a powerful owner's mindset, directly linking the company's success to the brand experience delivered by every individual, from the call center to the C-suite.

While bonuses tied to revenue incentivize employees to perform specific tasks, they are purely transactional. Granting stock options makes team members think holistically about the entire business's long-term health, from strategic opportunities to small cost savings, creating true psychological ownership.

To solve misalignment, the company cascaded OKRs from the CEO down. Critically, regional leaders were made 'champions' of key pillars like user acquisition. This gave them ownership and a direct voice in shaping product solutions, turning potentially adversarial relationships into collaborative partnerships.

Gifting non-performance-based shares to all employees doesn't foster an 'owner mindset.' True ownership thinking is better cultivated through incentives tied to specific, controllable outcomes, like targeted cash bonuses. Standard equity compensation often just becomes another part of the salary package, disconnected from individual impact.

To break down silos and encourage a platform mindset, Microsoft CEO Satya Nadella changed performance reviews. Every employee had to document how they contributed to the success of others, directly linking collaboration to their compensation. This made the cultural shift tangible and non-negotiable, moving beyond mere talk.

Structuring compensation around a single, firm-wide P&L, rather than individual deal performance, eliminates internal competition. It forces a culture of true collaboration, as everyone's success is tied together. The system is maintained as a meritocracy by removing underperformers from the 'boat.'