this post was submitted on 25 Jul 2024
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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.
There are 2 risk reduction strategies commitment-based and diversification based. The diversification-based strategy is the usual spread your eggs across many baskets strategy, but there is also a commitment-based dual strategy where you put your eggs in a few baskets and watch over them carefully.
Workers in coops can share risks with investors with non-voting preferred shares and other financial instruments. They can diversify by investing in other worker coops non-voting shares
@general
Ok but now you've just reinvented the regular stock market. Line must go up.
Not quite. Voting rights over firm governance are non-transferable/inalienable. The employer-employee contract is abolished, and everyone is always individually or jointly self-employed.
Incorporating social objectives should be done at the level of associations of worker coops
@general
Ok, but you've still introduced a profit motive, which is inevitably corrupting. Most extant shares of most companies today are non voting shares.