Company Structure - GenerousLabs/about GitHub Wiki

Prior art:

Generous Labs is a steward ownership company. Specifically, this means that decision making is separated from profit extraction. Any investments (in cash or time) are paid back at a capped rate of return. After all investments have been repaid, the company exists to serve its mission.

As Perry Chen nicely put it:

“Think of the classic corporation as a legalized sociopath: complete and utter self-interest above the well-being of others,”

We aim to build a company which is first and foremost in service to a mission, and secondly, in pursuit of healthy profit.

Return caps

Inspired by the Slicing Pie model, we cap returns on cash invested at 4x, and on time invested (if unpaid) at 2x. Some examples to explain how this works.

  • Alice invests €20k in Generous Labs, the company aims to pay her back €80k.
  • Bob is a software developer with a track record of billing €600 a day. While working with Generous Labs he is paid only €100 a day. The remaining €500 a day is considered a "sweat investment" of time. The company aims to pay him back €1'000 per day.