Our manifesto is an open declaration of how we operate. As with any practical policy, it is constantly changing to accomodate real world challenges. To see a full history and incremental improvements check out our manifesto repository.

The manifesto is not designed to be universally applicable. It is designed to help a group of like-minded people work together and gain practical insights to organisational theory.

Profit Sharing

Purpose of this page: this page describes how full time employees are compensated once they become part of the Kade Collective.

The How

  • People who join Kade fulltime become “Partners”
  • Kade pays 50% of its profit to partners every month in the form of bonuses (see below).
  • Kade invests 10% of its profit into a retirement fund (see Retirement Fund)
  • The remaining 40% is used on growth (marketing) or kept as a cash reserve for future projects or to cover basic income
  • Kade covers all expenses for projects (see Collective Assets)

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Profit Sharing Bonuses

There are 3 types of partner, corresponding to their contribution to the company

  • Full Partner (weighting = 10)
  • Senior Partner (weighting = 7)
  • Junior Partner (weighting = 3)

Each month the total bonus pool is split among the partners who are still active in the company.

Example

If Kade has $80K profit one month, the bonus pool would be $40K (80K * 50%). If there are 3 partners in the company - one Junior, one Senior, one Full - then the total bonus pool would be 20 (10 + 7 + 3). The bonus payout would be as follows:

Partner Weighting Bonus Explanation
Full Partner 10 $21,000 10 out of 20 points from the bonus pool (50%). They get 50% of the profit share
Senior Partner 7 $14,700 7 out of 20 points from the bonus pool (35%). They get 35% of the profit share
Junior Partner 3 $6,300 3 out of 20 points from the bonus pool (15%). They get 15% of the profit share

There is an incentive to minimize the number of partners and maximize the profit. Partners are therefore commercially focused as well as operationally focused.

Work: 3 day week
  • Partners are expected to work 3 days per week on Kade Projects.
  • Partners are expected to work for 2 days per week in the Frat House
  • Partners have unlimited leave.
  • Partners are expected to uphold the Sport Star Policy (specifically, do what is best for the team).
Non-partners

Kade still employs people as non-partners (usually outsourced) for menial tasks that don’t directly contribute to the culture of collaboration. The type of work which is required to be performed in Kade is as important as the people who become partners. If they work doesn’t directly contribute to an individual’s growth, the company covers the cost. The message is simple: Partners help Kade grow, Kade helps Partners to grow.

Benefits

  • By working only one mandatory day per week, we are forced to make our businesses simple and autonomous
  • Autonomy to work on your own projects is (in my opinion) they biggest driver for workplace satisfaction, with the exception of personal growth. For a developer, personal growth is strongly tied to the work they do, so this is a mutually inclusive outcome
  • By sharing profits we ensure transparency and a sense of ownership, as well as a collective ambition to keep costs low and focus on valuable projects
  • Since Partners feel ownership, it is in their interest to routinely improve this manifesto
  • Profit sharing overcomes the shortfalls of Employee Share Options, where share allocations are disproportionately skewed towards early joiners

Challenges

  • There will be friction arise around how soon a partner should be promoted
    • 360 / evaluations?
  • Dealing with underperforming partners. Possible mitigations:
    • 360 / evaluations?
    • Long probation periods with constant feedback
  • Partners who join could immediately be earning more than others who have been with the company a long time. Possible mitigations:
    • add a yearly multiplier / bonus?
  • Outsourcing menial jobs is probably not efficient in the long term. Possible mitigations:
    • Get an internal operations team, but they should be managed separately to allow them to develop their own culture
  • Early joiners take on more risk than those who join once the business is already profitable. Possible mitigation:
    • Give a yearly bonus (multiplied by number of years)
    • Set up retirement fund for all employees - they earn shares in the fund based on the number of years they work (multiplied by their Partner level)

Version History

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