What kind of compensation should be given to a developer that comes up with a new idea or business unit for a business they work for? Should they get stock options, salary inreases, percent ownership in their product, etc.?
I would like to hear experiences people have had with this as well as any ideas.
A hug, and then beer.
On topic, if I had created the idea (and it was really amazing), I'd want to see it through: That means a promotion/reassignment of some sort to manage the new entity/project. Along with promotion should come a decent raise, as well. I think managing how the idea is fostered and promulgated is the biggest sticking point for me.
Yes, yes, yes.
Basically they should get respect and acknowledgement for their accomplishments, and then rewards that go with those. The rewards are going to be different for different folks.
Or, if it's a large corporation, a glass trophy or framed plaque at a company-wide meeting. Or a chance to put your name on the patent that your company gets to keep.
Some employers, large and small, would argue that your great ideas are part of what earns your salary, and nothing more needs to be given.
"Should" is such a loaded term. It does depend on the company and its size, the owners, the developer, the nature of the idea, lots of things.
All the possibilities that you mention are very nice, and you might get them if you have an idea.
But the one way to be sure is to negotiate such a thing up front, in writing.
If you aren't happy with what you'll get you can always quit and start your own company with it. Just be sure that you aren't prohibited from doing such a thing by intellectual property agreements.
If the developers just gives ideas then he/she should get praises, accolades etc.
However, if such an idea gets implemented and makes the organization profitable in any way, the developer should be given a bonus and should be considered for future promotion.
If the product turns the company around then the developer should get a percentage share of the company.
It really depends on the structure of the other compensation plans and the size of the business, of course -- but I generally stock and a cash award would be how I'd want to go about it.
Of course, if it's patentable their name goes on the application (by law, no less) -- engineers tend to enjoy that too...even if it does take 5 years to get a patent through the USPTO these days.