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> management has skin in the game do measurably better than companies where they don't. Same applies to all non-managerial staff. That is why I love the concep
by zanny 12y ago
> management has skin in the game do measurably better than companies where they don't.
Same applies to all non-managerial staff. That is why I love the concept of coops, and I'm sad nobody does them much because they mean empowering your employees to be maximally productive at the expense of "potential profits" for founders and shareholders.
All the incentive systems in companies are all bandaids trying to make up for doing things wrong from the start. If you want to incentivize them to perform to profit, then let them profit as well from the companies success, and they will perform.
- nickff 12y agoIf co-ops are an effective corporate structure, why are they not more prolific? I am sure that many people would like to work in co-ops, so the question is why there are not more of them. I would suggest that co-ops don't work very well, and that if they did, employees at shareholder and closely-held corporations would found more of them. From the examples of co-ops that I have examined, it seems that they often fail from internal politics; this is true for both companies which are bought-out by employees, and those founded as co-ops. The examples that I've looked at are only anecdotes, and I do not have a list of citations, but I'd be very interested to hear from anyone who has found differently (as I have no prejudice against them).