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Vanguard is strictly-speaking a cooperative, not a "non-profit." The author very clearly recognizes that the company is owned by its funds, and in turn by its
by dublinben 9y ago
Vanguard is strictly-speaking a cooperative, not a "non-profit." The author very clearly recognizes that the company is owned by its funds, and in turn by its investors, but he mischaracterizes this as a "non-profit" model. Vanguard clearly makes a profit, but in the service of its ownership. Just like any other for-profit company.
- cortesoft 9y agoThey also seem to imply that you can't pay employees and be a 'true non-profit', which is just silly. Many non-profits have very well compensated employees. Non-profit just means that no one is making money off of capital investment with the company (which, as pointed out, is not true of Vanguard, either, but it has nothing to do with employee salary)
- greenyoda 9y agoIndeed, that's what tipped me off early in the article that the author didn't know what he was talking about. The people who run non-profits such as universities, hospitals, charities (e.g., Red Cross), etc. make really nice salaries. I once looked at my local public radio station's IRS 990 form and was surprised how high the salaries were. No organization, whether it's a for-profit or non-profit, can have full-time staff without paying them.