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>And there is no fair and obvious way to divvy up the return

How about x% of average revenue per employee. Usally around 100k to 300k. So ARPE minus expenses = average salary.

Probably around 60k to 70k for most companies.




There is no shortage of ideas how to distribute profits, and no shortage of arguments which one is "fair" or which one is the best for whatever reason.

This particular scheme means you are paying janitors as much as people who went to school for a decade or more. Some people would not find that equitable and fair. Few academics would find that offer competitive.

And depriving the executives of large salaries also means you are increasing the incentive for corruption. If somebody has the power to squander a billion Dollar, you better pay her more than 100k.

And you forgot to include capital gains, or you included it with expenses. Whoever owns the equity will want some return, otherwise they will invest elsewhere (or not at all).




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