Thursday, November 12, 2009

Ultimate Employee Loyalty Program

The Ultimate Employee Loyalty Program is to make an employee a shareholder proportional to thier contribution to the orginization. As a whole a viral capitalist organization would have 25% of the value of profits distributed to the employees of the company in the form of common shares. This is like a continuation of a share purchase or stock option program. Companies already spend large amounts trying to give incentive to employees - so the affects to the bottom line No $2.00 coupons or phoney awards here - thats doo-doo. A piece if the action is where its at. The minimum should be 1% of the market capitalization of the fully diluted share float. This keeps employees in the game in tough periods and scince its dilutive and not a capital cost it fluctates with the companies fortunes. The remaining value of profits 25% go to customers as new issues of common stock, and 50% to the common shareholders (which is cancelled). The proportion of stock issued to employees is proportioned according to thier wages (50%), seniority (25%), Insentive Pool (25%) of coarse this is only a simple recommendation and in practice may vary widely.

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