> Same with employees. If an employee has a 0.05% stake in a company that pulls in $100m/year in profits, that's an extra $50k if you do straight-up profit shar

> Same with employees. If an employee has a 0.05% stake in a company that pulls in $100m/year in profits, that's an extra $50k if you do straight-up profit sharing. Problem is, these employees want no ownership whatsoever; they also don't want a long-term stake in the company, they want to cash out and move on. This is the rational choice for the employee. Nobody wants more than 10% of their net worth wrapped up in a small nascent (read: very risky) asset. I'm sort of in the situation you describe, and I'd be very happy to sell my share at a steep discount to avoid the risk.