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>We don’t believe in a hierarchy or in more important people.

You shouldn't believe in this. This is fact.

I think it is supposed to mean that they do not want to institutionalize that some people are more entitled than others.

It's about basic human values, not about the organization. Of course, some people will be coordinating and some people will be more important than others for the organizational well-being.

Valve is a well-known company that works like this. People who've left say that hierarchy and power structure still exist, but is informal and hidden.

Exactly. A power structure will always exist, and it's generally better (or at least fairer) when it is at least explicit and relatively transparent as opposed to implicit and hidden.

Does the power structure actually need to be reflected in the pay scale though?

Not necessarily, no (in fact it may be inverted, e.g. managers making less than an engineer or technician under them).

> but is informal and hidden.

Which I feel would somehow be even more annoying..

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