The whole PE schtick about giving employees a stake is largely smoke and mirrors--not a lie, but a deflection of sorts. I have experience with this first hand and it works for them because c-suite folks are accustomed to it, so they're already going to go through the motions to set up an ESOP or the like.
So let's say c-suite folks account for ~3-5% of the company shares. So maybe 5 people own 5%... The reality is the entirety of the rest of the company will only account for maybe another 3-5%, and of that only a portion will actually understand the mechanisms and end up exercising their shares and converting. So maybe 1000 other folks account for that additional 5% and of that, only a portion will take action.
In short, they do what they have to get top level talent as dictated by the market, and the rest is fluff so that they can say "you're an owner, too," to any given employee, knowing the business could go bonkers and that person MIGHT make enough to by themselves an average car over the course of that ownership. The reality is that young folks hear "equity" and think Microsoft stories of Opera money, but surprisingly don't actually do the math.
Stravos is full of shit.
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"All God does is watch us and kill us when we get boring. We must never, ever be boring."
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