What does the Google principle $($discussed in the recording$)$ of "paying inequitably" mean?

Merit pay decisions should be made by groups of peers, so that "social capital" such as the ability to network and work well with others is taken into account.

Given that the distribution of employee performance is more consistent with a "power law" than a "normal" distribution, the pay differentials $($e$.$g$.,20-30\%)$ that typically exist among employees in the same job are far too low, and that pay differentials closer to $300\%$ to $500\%$ are needed to allocate rewards equitably.

Merit pay should depend solely on results, to reduce employees temptation to undertake seemingly attractive but risky projects in the hope of a big payoff.

In deciding merit pay, managers should intentionally introduce a random component to reinforce the message that no one is solely responsible for his or her own performance but that chance and luck play a role.

In deciding merit pay, managers should not be afraid to rely on "geir "gestalt" $($overall$,$ holistic$)$ impressions of their subordinates, even if they are not easy to defend on formal performance appraisal grounds.