2 ms·
If the company management runs a more efficient company, than they get more profits.. it just so happens that the rest of the "shareholders" are also the worker
by aaronblohowiak 17y ago
If the company management runs a more efficient company, than they get more profits.. it just so happens that the rest of the "shareholders" are also the workers. I don't think it is right to look at the profit-sharing is not a "wage expenditure."
Also, the desire to maximize short-term profits, as a traditional corporation with liquid equity is incentivized to do so, often leads to a lack of research, maintenance and other negligence that eventually adds up. The profit-sharing employees arguably have the long-term health of their source of income in mind and so they don't suffer the same tendency.
- jacoblyles 17y agoGood point on the idea that a coop might have a longer-term planning horizon. However, the point that a corporation has only short-term profit in mind is overstated. Drug companies take decades to bring a product to market, that's some long-term planning.
- aaronblohowiak 17y agoDrug companies are a special case due to extreme regulation, research grants, and tax breaks.