I'm not suggesting that acquisitions should necessarily be shared precisely evenly. I don't even think Josh necessarily earned an outsized return in this case.

I'm not suggesting that acquisitions should necessarily be shared precisely evenly. I don't even think Josh necessarily earned an outsized return in this case. I do think that the current disparity in compensation that we're seeing is potentially dangerous to a healthy society. We're already seeing a move towards a rentier approach to the economy, where individuals can't afford to own property or other essentials. A major force driving this is inequality, those with the means have so much capital under their control that they can afford to outbid those that have a need for those resources. > In the case of employment, each employee is offering the business owner his/her time in exchange for a salary and equity. The expectations are crystal clear to both parties. When the business owner sells the company, taking his fair share of the purchase price (as determined by his equity stake) is NOT stealing. Nor, is it breaking any norms or expectations. I don't think it necessarily is crystal clear. A big part of the sales pitch to employees for many startups is that your.5% will be worth X when they reach Y valuation. This isn't too bad in itself, but when it turns out that the founders can issue new/preferred stock the incentives from an employees point of view become severely misaligned. > Furthermore, for small acquisitions like this, even if you were to split his 3.7M payday across his 20 employees, each person gets $18.5K. Hardly an amount that would spur innovation. I agree it that it doesn't look great for smaller acquisitions. Although there are some interesting (in my opinion) alternatives to selling to private equity. In my city for example, the founders of a print shop sold the company to the existing workers. The money was paid out over a few years from the company's revenue and they sat on the board to offer some advice on the transition. It seems like a more ethical alternative in that the workers are rewarded for their part in building the company, and the new owners are less likely to asset strip and gouge existing customers to recoup their investment. It has the added bonus of not adding to the concentration of capital in a small number of holders.