Stockholm-based AI startup Lovable is promising full-time employees a 10% raise every year on their work anniversary. CEO Anton Osika said the policy reflects that "people get more valuable the longer they stay." The company, valued at $6.6 billion in December, targets the 90th percentile of the market for compensation.

The policy reignited debate about European tech pay lagging behind US salaries. Critics like Zach Tratar of Notion called the 10% raise on a $75k base "comical" compared to US equivalents, where early employees at companies like Stripe walked away with millions. VC Kenneth Auchenberg noted the biggest opportunity for talented Europeans is "to move to America for a decade, then go home to retire."

Most experts doubt the policy will spread. AI law company founder Andy Shovel called it "a product of circumstance" that only works for companies raising "limitless money." VC Orr Vinegold argued equity access matters more than guaranteed base pay increases. Lovable's chief people officer acknowledged the company will "evaluate and evolve the model as we grow."

The transparency move may pressure other startups to address compensation more openly — though one recruiter noted it's already a "recruiting hack" since competitors can offer Lovable employees a 20% raise knowing it'll take two years to match internally.