Originally Posted by
BobZ
without 'monitization' ps remains and will always be in addition to pay rates.
paid as equity holders in the business.
with 'monitization', ps is absorbed into pay rates, likely to never be reestablished. and wages are always paid as labor, with no equity position in the business.
pay rates can evaporate with the stroke of a pen. with no 'automatic' recovery resulting from improving economic performance.
idk why the benefit of this arrangement is any longer a point of debate.
Bob, let me try to address each of your points:
1. Equity holders are people who own stock, not those that receive profit sharing.
2. Profit Sharing absorbed into pay rates grow at a compounded rate with every future pay raise. Profit Sharing is not compounded by future pay raises. Do you understand the power of compound interest?
2. Profit Sharing exchanged into pay rates can be negotiated away (with the stroke of a pen), whereas Profit Sharing can simply disappear without negotiation. I prefer to have the option of negotiation.