You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #96: The initial employees where I now work were offered a risk-cash trade-off... [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
eallen Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-07-07 10:29 AM
Response to Reply #29
96. The initial employees where I now work were offered a risk-cash trade-off...
The initial employees were able to choose what they wanted to be paid, as a fraction of their market salary, for the first year of the company's existence, with the remainder to be compensated in stock options. If some chose 0%, as some did, their entire compensation would be stock options. Those who chose 100% salary would receive a market wage, but no stock options. Each individual chose her or his own risk profile.

Now, which group is "expropriating" from the other? Those who gave up salary for stock? Or those who took cash up front?

Since the future has not yet unfolded, I cannot yet tell you for certain which group will profit the most from the venture. I think this business will do well, and expect those who bet on the stock will do far better. But that is said against the background that a) most new businesses fail, and b) it is impossible to know all the facts about the market and events that might soon transpire that would affect our business's success or failure. It's quite possible that those who worked that first year without compensation will see a complete loss of that year's work.

The problem with the traditional Marxist analysis that you are peddling, besides the assumption of a particular moral frame of reference, is that Marx had a simplistic view of the role of capital. To him, capital was the means of production, and what mattered most about who owned it was simply who received its rewards.

But it matters a great deal to the direction of the economy how capital is deployed. The unique thing about capitalism are the mechanisms it creates to lure capital away from pure rent seeking and into the creation of new and risky ventures, seeding the evolution of business and technology processes that drive modern economies. Economic advance requires a lot of new businesses. Which means a lot of capital put at risk.

:hippie:
Printer Friendly | Permalink |  | Top
 

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC