An employee owned S-Corp is little more than a tax shelter. It doesn’t have much bearing on equity among employees. It mainly gives the company more un-taxed cash to buy out competitors. It’s like a pyramid scheme because employees have to buy their way in. That cash is used as more bonuses for the upper management. The only people getting wealthy are the ones already with millions of equity. Employee “owners” can’t do anything meaningful with that ownership.
Anyway after arguing for all kinds of raises, after nearly 10 years I didn’t have a whole lot to show. A 401k and Roth IRA. It’s not nothing but that too is like a pyramid scheme. My friends who worked in state government made just as much money and earned a pension worth 20% of their future salary.
Go on…
An employee owned S-Corp is little more than a tax shelter. It doesn’t have much bearing on equity among employees. It mainly gives the company more un-taxed cash to buy out competitors. It’s like a pyramid scheme because employees have to buy their way in. That cash is used as more bonuses for the upper management. The only people getting wealthy are the ones already with millions of equity. Employee “owners” can’t do anything meaningful with that ownership.
Anyway after arguing for all kinds of raises, after nearly 10 years I didn’t have a whole lot to show. A 401k and Roth IRA. It’s not nothing but that too is like a pyramid scheme. My friends who worked in state government made just as much money and earned a pension worth 20% of their future salary.