When Will Early Startup Employees Get Their Fair Share?(lesecretairedefernand.co)
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When Will Early Startup Employees Get Their Fair Share?
https://www.lesecretairedefernand.co/en/entrepreneurship/can-startups-share-value-more-fairly-without-scaring-investors/
4 comments
I like your thought process of dual-capital startup model. However the time portion I believe may overlook the valued contributions of employees. More time doesn't necessarily mean more value, so I think employees will manipulate the system to get more profit-share. I am a big believer in increasing the cut of the pie through profit-share and not the current model of stock options but a separate profit-share compensation segmented for contributors that are not owners and not investors in the VC way. The hard part is measuring contribution that leads to value, which leads to profit. For example, with software companies, is it just who wrote the most code? Or the most valuable line of code that transforms an application from mundane to transformative. I don't know the answer, but profit-sharing of employees outside of stock options should be a higher priority, especially when break-even is reached. Meaning, quarterly net profit after tax is not just rewarded to shareholders or founders. I know people will say, " Well, you're getting a salary", tax code tells you fu and your salary, thank you for our 50% cut, now get back to work.