I would argue against that, unless everyone has the same role and responsibilities, and brings in the same share of revenue... Not even co-ops have that, right?
As for Simon Squibb, he didn't mention anything specific about this in his book either, but his approach was to prioritise reinvesting profits into the business and into his people over personal payouts.
He wrote: "When you make money from your company, don’t take it off the table. Don’t use it to buy yourself a house or go on a long-deserved holiday. Instead, invest that money back into the business. Give out pay rises, improve your premises, develop and market your brand."
He also suggests founders should offer equity to attract top talent, especially when they can’t match market salaries, turning hires into co-investors. That way, the person joins with skin in the game and you offset salary with ownership.
My only issue would be that it’s problematic, in my mind, to equate contribution with time. I could come up with an idea in a split second that doubles profits in less than a year. Basically, I think we need to re-think value.
Sounds great! Sounds very attractive. Sounds...like I need to be on the defensive. Did he pay himself the same as his colleagues? 🤔
I would argue against that, unless everyone has the same role and responsibilities, and brings in the same share of revenue... Not even co-ops have that, right?
As for Simon Squibb, he didn't mention anything specific about this in his book either, but his approach was to prioritise reinvesting profits into the business and into his people over personal payouts.
He wrote: "When you make money from your company, don’t take it off the table. Don’t use it to buy yourself a house or go on a long-deserved holiday. Instead, invest that money back into the business. Give out pay rises, improve your premises, develop and market your brand."
He also suggests founders should offer equity to attract top talent, especially when they can’t match market salaries, turning hires into co-investors. That way, the person joins with skin in the game and you offset salary with ownership.
You wouldn’t be alone, Daniel. I’d say you’d be part of the 99% club. What’s your thoughts about Suma Foods?
https://chatgpt.com/share/680937c1-d0d0-800e-9e41-d9eb51df3267
My only issue would be that it’s problematic, in my mind, to equate contribution with time. I could come up with an idea in a split second that doubles profits in less than a year. Basically, I think we need to re-think value.