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> For other companies that are interested in playing the long game, I think it makes more sense to explore alternative compensation structures like profit shari
by drone 13y ago
> For other companies that are interested in playing the long game, I think it makes more sense to explore alternative compensation structures like profit sharing, etc.
IMO, for non-growth oriented companies, I believe this is the best way to align employee and company interests. I can imagine that there are more effective means of doing so, but I can't imagine what they would look like. The devil's in the details, of course, but a properly-implemented profit-sharing plan seems to be well-received by the employees whom I've witnessed partake.
- yesimahuman 13y agoGrowth and long term vision or lack of interest in an exit are not mutually exclusive. At any rate, I'd be curious to hear how companies like Mailchimp are doing these types of compensation.
- drone 13y agoBy "growth-oriented," I'm referring to those companies who eschew any profit in deference to further growth (even if they could show reasonable profit at a slighter lower rate of growth). For these companies, they lack the immediate value to works of a profit-sharing plan, which, IMO, is one of the most valuable aspects of it.
- yesimahuman 13y agoSure, good point. I'd rather not be on a profit sharing plan in one of those companies :)