Fried: 37signals Distributes 10% of Annual Profits as Cash
Jason Fried · Musings of a Legendary Entrepreneur · Jan 5, 2024 · at 22:31
Jason Fried, co-founder of 37signals, explains the company's compensation philosophy of cash profit sharing instead of granting startup equity.
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“We have a 10% profit share plan. So we hold aside 10% of our annual profits and distribute them to our employees as real money, not equity, not options, not based on what the fluctuations of the market is, but like cash you can spend tomorrow on a mortgage or whatever, right?”
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