Your plan may work at first... but remember the 80/20 rule. 80% of the work is done by 20% of the people. These are your superstars - the ones that will take your company to the next level. Some may be motivated by your utopian ideas, but after awhile, human nature takes over. Why work harder than the next guy, when you both get compensated the same. Unless bonuses or other perks are out of the park home runs for the superstars, many will eventually leave. I see this all the time in the healthcare industry, where many people are altruistic. Eventually, if their harder work is not appreciated, they vote with their feet. Just my 2 cents worth.