That is true. However, you can still solve it and i have seen it work in practice: allow every employee to buy shares of the company. Fixed limit of shares per year of employment. Shares cannot be sold on the free market, they are bound to employment. Shares are kept after departure. Shares give dividends as usual.
That’s an interesting approach, but eventually you’ll run out of shares to allow employees to buy, and you’ll have to dilute the ones you’ve already sold. You need to think that AAA studios have hundreds of people working there, and certain games have thousands of people working on related stuff that’s not directly the game but contributes, like engine, servers, social, etc.
There is no problem with diluting. It’s not guaranteed amount passive income :) but if more people work there, you would usually also have higher gains to distribute. And old shares eventually disappear, they are not inheritable.
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That is true. However, you can still solve it and i have seen it work in practice: allow every employee to buy shares of the company. Fixed limit of shares per year of employment. Shares cannot be sold on the free market, they are bound to employment. Shares are kept after departure. Shares give dividends as usual.
So it is a partially worker owned company.
That’s an interesting approach, but eventually you’ll run out of shares to allow employees to buy, and you’ll have to dilute the ones you’ve already sold. You need to think that AAA studios have hundreds of people working there, and certain games have thousands of people working on related stuff that’s not directly the game but contributes, like engine, servers, social, etc.
There is no problem with diluting. It’s not guaranteed amount passive income :) but if more people work there, you would usually also have higher gains to distribute. And old shares eventually disappear, they are not inheritable.