the 60:40 company structure sustainable or too generous?
I run a consulting company where the core value comes from our talent. to keep balance and growth sustainable, I’ve thinking on working with a 60:40 model:
60% goes back into the business where this includes profit-sharing for division directors (15–20%) who manage clients, day-to-day operations, and program development which the 40% remaining covers freelancers, marketing, sales.
40% becomes the company pool goes to shareholder distribution where this 40% is split into 30:10 where 100% of 10% is reserved for key player hires to strengthen the team with vesting on 2 year cliff.
This approach ensures directors are motivated, the business reinvests in growth, and shareholders still see returns without collapsing under the weight of over-distribution.
My only concern is because of 60–70% reinvestment back to operations too high? I want to take company profit too, not just subsidize operations.
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