I did some ‘back of the napkin’ math a few days ago to see what it would take for the employees in my company to purchase enough shares for a controlling stake in the company. I figured that we’d never get 100% of the employees to buy in, but we also don’t need 100% of the shares, so to keep it easy I calculated if 60% bought 60% of the shares… and it would cost each employee around $2.3 million.
That tells me that each employee provides $2.3 million worth of value to the company… and we’re not getting paid anywhere near that. Not even close.
I did some ‘back of the napkin’ math a few days ago to see what it would take for the employees in my company to purchase enough shares for a controlling stake in the company. I figured that we’d never get 100% of the employees to buy in, but we also don’t need 100% of the shares, so to keep it easy I calculated if 60% bought 60% of the shares… and it would cost each employee around $2.3 million.
That tells me that each employee provides $2.3 million worth of value to the company… and we’re not getting paid anywhere near that. Not even close.
Company value is just the result of shareholders expectations for the future company value. It doesn’t directly reflect the employees worth