A regular review process is key. A lot of startups don't do regular, systematic performance reviews and people think that is a good thing, but it's actually a bad thing.
A good performance review gives you the opportunity to demonstrate how well you are doing and back that up with feedback from your peers. It gives your manager documentation that proves you deserve more compensation. And you get this opportunity on a regular basis.
Even if you don't get a big compensation increase every time, annual reviews are generally when the company, as a matter of policy, gives out cost-of-living raises and stock grant refreshers. At companies without review processes this doesn't always happen every year.
