Compensation Structure

Company has been in existence for less than three years and currently headed by the CEO, CFO and COO with five others that are the heads of their segment of the business. The five of us are young and have no idea of what a fair and equitable bonus and or profit sharing structure would look like, so any help would be greatly appreciated!

  1. The business segments were built by each of us with the help of the heads of the firm. We have been told repeatedly how integral we are to the company and we believe this to be true.
  • we cannot take a vacation unless we all are taking a vacation the same week.
  • the past year has been 7 days a week work weeks.
  • two of the five have thought about leaving the company and were quickly convinced to stay by upper management. Mgmt would then address them team as a whole and generally does a great job at responding to our concerns.
  1. We have repeatedly been told that as the company grows we will be well taken care of, make a great deal of money, etc., but these ambiguous phrases need to be written so that we feel some level of comfort as we move forward.

  2. We believe they genuinely will give us a generous bonus, but nothing is in writing as of yet.

Questions
- If you're an integral part of a small, growing organization how would you want your compensation structured?

Annual bonus? Quarterly Bonus? Profit sharing? If so, could you throw out some ideas? Based on Revenue or Profits?

Do we ask for a piece of the company? How would this work for a private firm?

We're in the investment space, so do we setup a separate entity that invests separately?

I am curious to hear how some of you share the wealth with your employees and conversely, employees - what is your current share of the business?

Any help would be greatly appreciated!

Thank you!

 

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