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That is the same question i am thinking about. I have a small software shop in NYC. One of our clients suggested a co-op model. Im thinking using the example in

That is the same question i am thinking about. I have a small software shop in NYC. One of our clients suggested a co-op model. Im thinking using the example in this article and apply to software. Building apps. Design. UX. I have a local talent pool who i work with on a gig based set up. I get a gig ,set up the team , take down the project , move to the next. I am now thinking if this guy gives me money for the co-op idea and how much THEN figure the structure. From the article, it’s what’s known as a multi-stakeholder cooperative, with three classes of shares: one for executives, one for staff and a third class for providers. thoughts?

monodeldiablo 10y ago
I'm a little uncomfortable with the executive class of stock ownership there. How do they maintain their accountability to the other two classes? How are voting and profit options arranged? Anyway, you might do well to look at how the Mondragon Cooperatives structure their worker ownership schemes. They have a seniority model, where member-owners pay into a capital account when they join. Capital accounts accrue interest at the same rate (the percentage of profits distributed as dividends), but because older accounts have larger balances, they grab a larger share of the dividend. By the same token, workers adjudged to bring greater value to the company have larger initial capital accounts than the guy at the loading dock. In lieu of an executive class of shares (which is sure to cause grumbling one day), why not give the individuals taking the initial risk a larger initial capital account (i.e. share of the financial pie)? That way, you retain a single class of stock, remain accountable to your peers, yet retain a portion of any future profits commensurate with the initial risk you took?
- adamqureshi 10y ago
  I looked them up: https://en.wikipedia.org/wiki/Mondragon_Corporation https://en.wikipedia.org/wiki/Mondragon_Corporation I just dont know who sets this up in accordance with laws in New York State ( a lawyer i'd imagine ,duhh. lol) but the nitty / gritty details, like mapping value to capital etc... This model is VERY interesting and I believe the main 3 guys can pay into the initial capital account from a large project we are starting in September. If you don't mind i'd love to talk more via email. thoughts?
  - monodeldiablo 10y ago
    Absolutely. Hit me up. I can also try to put you in contact with more knowledgeable people.
    - adamqureshi 10y ago
      gimme your contact info... mine is in my profile

monodeldiablo 10y ago

I'm a little uncomfortable with the executive class of stock ownership there. How do they maintain their accountability to the other two classes? How are voting and profit options arranged? Anyway, you might do well to look at how the Mondragon Cooperatives structure their worker ownership schemes. They have a seniority model, where member-owners pay into a capital account when they join. Capital accounts accrue interest at the same rate (the percentage of profits distributed as dividends), but because older accounts have larger balances, they grab a larger share of the dividend. By the same token, workers adjudged to bring greater value to the company have larger initial capital accounts than the guy at the loading dock. In lieu of an executive class of shares (which is sure to cause grumbling one day), why not give the individuals taking the initial risk a larger initial capital account (i.e. share of the financial pie)? That way, you retain a single class of stock, remain accountable to your peers, yet retain a portion of any future profits commensurate with the initial risk you took?

adamqureshi 10y ago
I looked them up: https://en.wikipedia.org/wiki/Mondragon_Corporation https://en.wikipedia.org/wiki/Mondragon_Corporation I just dont know who sets this up in accordance with laws in New York State ( a lawyer i'd imagine ,duhh. lol) but the nitty / gritty details, like mapping value to capital etc... This model is VERY interesting and I believe the main 3 guys can pay into the initial capital account from a large project we are starting in September. If you don't mind i'd love to talk more via email. thoughts?
- monodeldiablo 10y ago
  Absolutely. Hit me up. I can also try to put you in contact with more knowledgeable people.
  - adamqureshi 10y ago
    gimme your contact info... mine is in my profile