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>"Won't this change mean we operate at a loss to subsidize your other company, which will affect staff bonuses". I don't get it. Can you explain?
by v8engine 6y ago
>"Won't this change mean we operate at a loss to subsidize your other company, which will affect staff bonuses".
I don't get it. Can you explain?
- danielheath 6y agoBoss owns two companies. Staff at company A have negotiated a profit share / performance bonus. Boss directs company A to provide services “below cost” to company B. Company A now has no profit to share; it has been funnelled elsewhere to avoid paying the staff their bonus.
- tinix 6y agoThis is a dirty tactic, but I've seen it used... a lot. It has slimy tax advantages too, for the company. If you're getting profit sharing, you should be able to see the books, and have controlling shares, too... IMO.