Do the employees get a stake in the company proportional to how many there are? Are profits shared amongst them equally?
In: Other
It means it’s not publicly traded, so there are no outside shareholders; the only shareholders are the company’s employees themselves. It gives employees the incentive to help the company be profitable as they are the company’s shareholders and they usually get a share of the profits proportional to the percentage of their share as dividends, like a year-end bonus. The percentage is rarely equal as the CEO of the company would have a larger share compared to the receptionist, for example.
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