alt Hacker NewsThe "leaders are owners" bit is a great idea from the shareholders' perspective, but a bit of a raw deal for the employees. That is, every owner wants the employees to act as if he has as much skin in the game as an owner does. But the employees simply do not. They might have some equity, but at Amazon it would only be the tiniest sliver. If you can convince such employees to act as if they are owners, then good for you I guess. But savvy employees would only act as owners to the extent that they are given upside potential to match.
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I don't understand how slivers of stock is supposed to incentivize anyone to do anything.
Amazon has 1.5 million employees. Say that it's a completely fair co-op and I have a 1-in-1.5-millionth share of the whole company. Their market cap is about 2.5T, so this is about 1.6 million USD in stock that I own. (By amazing coincidence, their market cap in USD is about the square of the employee headcount)
But if I'm a rank-and-file employee with nobody under me, then doubling my production could only be equivalent to adding one more 1-in-1.5-millionth to the company's value, right? Equivalent to hiring one more employee at my level.
For that impossible extraordinary 80-hours-per-week double effort, my stock would go up... a dollar, right? Roughly 1-in-1.5-millionth of my 1.6 million dollars of stock.
I think it's a joke. I think "stock incentivizes people to work harder" is a little joke that people tell each other so that labor will be pacified with company stock and leftists will bicker about co-ops instead of saying the quiet part which is that people just want more money
I just don't see any math in which stock isn't basically a tragedy of the commons for boots-on-the-ground workers. If I was paid for exactly the labor I do, doubling my effort doubles my paycheck. If I have stock, some of that revenue is spread to everyone else who has stock. Giving everyone stock doesn't incentivize anyone any more, right? What am I overlooking?
Ownership without corresponding property rights.