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I don't want to get into this whole discussion about if the employees do or do not deserve the company, but I thought I'd take up a different angle. >...leavin
by aeturnum 14y ago
I don't want to get into this whole discussion about if the employees do or do not deserve the company, but I thought I'd take up a different angle.
>...leaving it to your heirs makes more sense from an evolutionary point of view.
I think you can make a strong argument that giving the company to your heirs whole-hog is a poor idea (unless those heirs are involved in the company personally). They will almost certainly be called upon to make decisions about the company, and without expertise they'll probably do a middling job of it. It seems quite sensible that, especially in your heirs are unfamiliar with the business, that the employees should have their self-interest piqued in some way when you pass it on. After all, if you devote 20% of the company to employee equity, and the company performs 30% better as a result, your heirs will be better off because of it.
It seems like the people who work at the company are most qualified to run it, and that giving them some incentive to run it well is in everyone's interest. So I wouldn't say it's clearly a bad choice, "from an evolutionary point of view," for either the heirs or the company.
Also, this is completely parenthetical, but this sort of thing does not look good (even if you're right):
>My logic is undeniable, how can you oppose anything I say?
- sdfasdfa 14y ago>>I think you can make a strong argument that giving the company to your heirs whole-hog is a poor idea (unless those heirs are involved in the company personally) If you leave lots of money to your kids and never taught them from an early age how to handle money then it is your fault. Any reasonable parent would prepare their kids to know how to handle money. Don't be surprised if they turn out bad because you've spoiled them. And if they are not interested in running that type of company but instead they want to do something else then the solution is simple: sell the business and allow them to run their life as they see fit. If you've done a good job raising them then they should be OK.
- deleted 14y ago[deleted]