3 ms·
I have a lot of issues with the work of Yanis Varoufakis, but he has one idea that I'd like to see tried out - and that is that the workers own 10% of their com
by bojan 2y ago
I have a lot of issues with the work of Yanis Varoufakis, but he has one idea that I'd like to see tried out - and that is that the workers own 10% of their companies, obviously getting 10% of the profit, etc. At least in Europe it's uncommon to get shares as part of the compensation package, so I'm curious how the Varoufakis' idea would end up working. It's worth giving it a shot.
- pipes 2y agoIt doesn't sound like a bad idea. And I really wish the UK was more like the USA with stock options etc
- nradov 2y agoI'm not opposed to employee ownership but there's no reason to think that mandating a certain minimum level will produce better outcomes. The equity dilution will increase the cost of capital, making it harder to start or expand businesses. Most workers have virtually zero ability to impact shareholder returns. And low skilled workers really need cash today, not the possibility of dividends or capital gains tomorrow.
- lotsofpulp 2y agoAs a worker, I don't want 10% of my business' volatile profit. I would rather have reliable cash, that I can invest in SP500. Or at least that is the case with employees of most businesses.
- milesrout 2y agoWhy would I want that as a worker? I am already "overexposed" to the fortunes of my employer by virtue of being employed by it. If my employer does well then I get paid better, get a bonus, etc. If my employer does poorly then I risk being laid off. Why would I want to invest in that risk when I have relatively little control over the success of the business, as opposed to investing the same amount of wealth in the market more generally or in assets that counter some of that risk? Also, generally, why should employees automatically get some part of the company? What have they done to deserve it?