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The team as a whole becomes less sustainable. Profit margins went from 2m to 500k. That's a lawsuit away from being in the red. Is the entire team going to take
by smokeyj 12y ago
The team as a whole becomes less sustainable. Profit margins went from 2m to 500k. That's a lawsuit away from being in the red. Is the entire team going to take pay cuts if profits aren't coming in? Does someone get fired?
I think those lauding this as a morally virtuous move aren't basing this on principle. Hiring 1 employee for 100k isn't better than hiring 2 employees for 50k assuming equal qualifications. The team with two employees will be more productive and stay in business longer than the competitor (who spends twice as much on everything and won't stay in business).
- mattlutze 12y agoIf the gambit is that, in the recent future, they expect new business from the publicity to increase profits and cover part of the loss, I think the hit is not so large. And ultimately if it doesn't pan out, he can sell the company to a larger processor and cash his 100% stake out.
- smokeyj 12y ago> And ultimately if it doesn't pan out, he can sell the company to a larger processor and cash his 100% stake out. Do you honestly think that isn't plan A? He's going to flip the company, pocket the cash, and all those employees who experienced a temporary rise in salary will be unemployed. When Mr.CEO doles out equity instead of cash I'll give into the warm fuzzy feelings.