

Profit Sharing - arjosoer

If you were given the following options for remuneration - which would you pick?<p>(1) Hourly Rate $70; no profit sharing<p>(2) Hourly Rate $60; 1% of net revenue; capped at $20,000 per year<p>(3) Hourly Rate $50; 2.25% of net revenue; capped at $50,000 per year<p>(4) Hourly Rate $40; 5% of net revenue; capped at $80,000 per year<p>Also, the hourly rate bumps up to $70 automatically once there is $1.5M of cumulative revenues.
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camz
Honestly this depends on the company because its a question of confidence. Do
you have confidence that the company will be generating real revenues and how
bad to you need the money.

If you have a family and need to have guaranteed income at set levels, then
you should be conservative and pick option 1.

But, to put it in perspective. To see what the back-of-the-napkin calc is for
the maximun annual total income.

1\. 140k no matter what 2\. 140k Max (60 x 2 = 120k plus the max 20K) This
option sucks balls. 3\. 150k Max (50 x 2 = 100k plus the max 50k) 4\. 160k

