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"The Company is primarily created to generate bonuses for the employees (not to get sold)." Wrong. The company is primarily created to profit all shareholders
by Brushfire 15y ago
"The Company is primarily created to generate bonuses for the employees (not to get sold)."
Wrong.
The company is primarily created to profit all shareholders, a group that should include most, if not all, employees.
There are a lot of great points in this article, but there are at least 5-10 bullets that I cant get close to agreeing with.
- _delirium 15y agoIf you don't have outside investors, and distribute profits as bonuses, the effect is basically the same as if employees had shares and you were paying dividends, except that shares only persist for the duration of employment (since you stop getting bonuses once you leave). A more formalized way of setting that up is to use a cooperative business structure, where ownership is shared by current employees.
- Brushfire 15y agoGood point. Although the tax implications are different (worse), this would be effectively the same. But I think the idea of shareholder is more powerful. It is not just about cash, but also about ownership and having a vote. And it also means equality per share. Bonuses have none of these characteristics.
- wisty 15y agoHave you studied any law? A company should follow it's constitution. If that constitution says that the company is there to waste it's investors capital, then that's fine. Just don't invest in one of those, unless you have a good reason.
- Brushfire 15y agoThe article is about propositions for how to ideally structure a company, not the range of possibilities.