So I get the idea that companies shouldn’t be slaves to shareholders or the whims of a few people, but would the employees owning the company mean they are shouldering financial risk? Like if my company goes bankrupt I just lose my job, I am not responsible for covering their losses.
I think the liability would still be limited. If a company goes bankrupt it’s not like they’re going after shareholders’ personal assets to pay creditors.
They are. It also means that if the company goes under or starts doing poorly, they’ll lose it all.
Imagine if you told people you put half of all your savings into the stock market. “Good job. That can really work for you”
Now imagine telling them you only put it in a single stock, with no diversification, you won’t be able to sell until you’re 59 1/2 years old, amd when you do sell, you have to spread the sale out over 6 years. “Wut?”
Like the article says. This company is a unicorn. Very few companies end up doing so well compared to the ones that start out. Employees that have been there over 15 years have over a million dollars in the stock options account (article claims). That’s of course far from typical of a company structured this way. I’d imagine that if anyone just bought $20,000 of their stock 15 or 20 years ago and left it there until now, they may also have over a million dollars worth by now. You could sell it all whenever you’d like doing it that way.
Lots of ways to do this. But overall the idea isn’t that the only investment you can ever make is in the company you work for. What could happen is some shares are public and the rest are held by employees. Employees would own enough to reserve more power in decision making so that the employees have greater say in direction of the company. It also means private Business can also be private. Just make it so that if any company wants to go public they should be employee owned or similar.
So I get the idea that companies shouldn’t be slaves to shareholders or the whims of a few people, but would the employees owning the company mean they are shouldering financial risk? Like if my company goes bankrupt I just lose my job, I am not responsible for covering their losses.
I think the liability would still be limited. If a company goes bankrupt it’s not like they’re going after shareholders’ personal assets to pay creditors.
They are. It also means that if the company goes under or starts doing poorly, they’ll lose it all.
Imagine if you told people you put half of all your savings into the stock market. “Good job. That can really work for you”
Now imagine telling them you only put it in a single stock, with no diversification, you won’t be able to sell until you’re 59 1/2 years old, amd when you do sell, you have to spread the sale out over 6 years. “Wut?”
Like the article says. This company is a unicorn. Very few companies end up doing so well compared to the ones that start out. Employees that have been there over 15 years have over a million dollars in the stock options account (article claims). That’s of course far from typical of a company structured this way. I’d imagine that if anyone just bought $20,000 of their stock 15 or 20 years ago and left it there until now, they may also have over a million dollars worth by now. You could sell it all whenever you’d like doing it that way.
Lots of ways to do this. But overall the idea isn’t that the only investment you can ever make is in the company you work for. What could happen is some shares are public and the rest are held by employees. Employees would own enough to reserve more power in decision making so that the employees have greater say in direction of the company. It also means private Business can also be private. Just make it so that if any company wants to go public they should be employee owned or similar.