3 ms·

What’s the alternative? How can an employee expect to get paid a salary and own the company?

burkaman 3y ago
Dow Jones has 8000 employees, if they each owned one thousandth of one percent of the company they could pool it all to represent 8%, which is pretty substantial. Maybe I misunderstood your question, but it's extremely common for a person to own equity in a company and earn a salary from that same company.
- ryandrake 3y ago
  Is owning one thousandth of one percent even close to do-able for a median employee, at any company? I get what I consider a generous RSU package from my employer, but I currently own 0.00000011 of, or (if my math doesn't fail me) 1/90,000th of a percent of the company. Truly a minuscule amount.
hn_throwaway_99 3y ago
> What’s the alternative? How can an employee expect to get paid a salary and own the company? The fact that this question is posed almost like it's an impossibility goes to show how much we've been subtly brainwashed into thinking it's unreasonable. For example, before the private-equity-in-healthcare boom that did nothing but siphon off profits to the Wall Street class, in Texas all doctors groups were physician-owned (I believe they must still be by law, but PE has largely gotten around the bulk of that). It's really a great environment when the people who do the work are also the owners. Most groups, like other professional organizations (e.g. lawyers), hire people on a partnership track, where they become owners after a number of years. There are also employee-owned companies, like Publix supermarkets.
- Jensson 3y ago
  He is probably thinking about venture capital backed firms or high risk ventures like movies or games, there it you can't have it be worker owned and workers getting paid since there is no revenue until later, worker pay comes from the owners pocket. In a business with stable income it makes perfect sense though, like doctors or consulting firms.
  - runako 3y ago
    > like doctors or consulting firms Big difference between ownership of (private) medical, consulting, law firms is that the owners are usually required to purchase their stakes. The average employee at a firm may not have the desire or wherewithal to purchase a stake in their company. Notably, folks who buy in to consulting and/or law firms commonly take out loans to buy their (incredibly illiquid) stakes. This is not a model for the typical employee.
    - clbrmbr 3y ago
      I’ve wondered how that works. Quite a risk to take out such a loan! I’ve never had that level of confidence in my employer.
  - clbrmbr 3y ago
    You have me there. Worked most my life in angel-backed startups or government-funded research, so it’s hard to conceive of a going concern! Everything in tech feels boom-or-bust.
PaulDavisThe1st 3y ago
How can a corporate officer expect to own (some of) the company and get paid a salary?

Dow Jones has 8000 employees, if they each owned one thousandth of one percent of the company they could pool it all to represent 8%, which is pretty substantial. Maybe I misunderstood your question, but it's extremely common for a person to own equity in a company and earn a salary from that same company.

ryandrake 3y ago
Is owning one thousandth of one percent even close to do-able for a median employee, at any company? I get what I consider a generous RSU package from my employer, but I currently own 0.00000011 of, or (if my math doesn't fail me) 1/90,000th of a percent of the company. Truly a minuscule amount.

hn_throwaway_99 3y ago

> What’s the alternative? How can an employee expect to get paid a salary and own the company? The fact that this question is posed almost like it's an impossibility goes to show how much we've been subtly brainwashed into thinking it's unreasonable. For example, before the private-equity-in-healthcare boom that did nothing but siphon off profits to the Wall Street class, in Texas all doctors groups were physician-owned (I believe they must still be by law, but PE has largely gotten around the bulk of that). It's really a great environment when the people who do the work are also the owners. Most groups, like other professional organizations (e.g. lawyers), hire people on a partnership track, where they become owners after a number of years. There are also employee-owned companies, like Publix supermarkets.

Jensson 3y ago
He is probably thinking about venture capital backed firms or high risk ventures like movies or games, there it you can't have it be worker owned and workers getting paid since there is no revenue until later, worker pay comes from the owners pocket. In a business with stable income it makes perfect sense though, like doctors or consulting firms.
- runako 3y ago
  > like doctors or consulting firms Big difference between ownership of (private) medical, consulting, law firms is that the owners are usually required to purchase their stakes. The average employee at a firm may not have the desire or wherewithal to purchase a stake in their company. Notably, folks who buy in to consulting and/or law firms commonly take out loans to buy their (incredibly illiquid) stakes. This is not a model for the typical employee.
  - clbrmbr 3y ago
    I’ve wondered how that works. Quite a risk to take out such a loan! I’ve never had that level of confidence in my employer.
- clbrmbr 3y ago
  You have me there. Worked most my life in angel-backed startups or government-funded research, so it’s hard to conceive of a going concern! Everything in tech feels boom-or-bust.

PaulDavisThe1st 3y ago

How can a corporate officer expect to own (some of) the company and get paid a salary?