The biggest issue I have with Mr. Hsieh is that one of his core values is employees should be motivated by factors other than compensation. I can certainly agree with the premise but the problem is he doesn't offer much in exchange for the lack of compensation. Employees are exposed to all the difficulties of a young, startup atmosphere, including long hours, uncertain work/living environment (move to downtown uprooted lots of employees), volatile policies (holacracy implementation), etc... But employees get none of the benefits that normally come with those issues, specifically compensation.
When Tony sold Zappos to Amaozn he became a centimillionaire several times over. Yet none of the rank and file earned a penny off the sale, per Tony's core belief that employees shouldn't be motivated by compensation, which apparently includes equity compensation as well. If you're going to treat your employees like guinea pigs for your social theory experiments at least give them some carrots for the distressful uncertainty it creates.