The Parable of the Startup

A startup founder set out to hire people to help him. He promised to give them a healthy percentage of ownership for their efforts. When the business grew, after about a year, he set out to hire more people and told them,

"Come work at our little startup. We don't make much yet, but I have a little personal money to pay you, and I'll give you ownership. It's better than sitting around doing nothing. After all, with ownership, you could get rich."

So more of them came. After 18 months, he hired more, and then even more after 2 years. Finally, at the 3-year mark, just as they were starting to make a profit, he hired one last group. When recruiting, he would always say,

"Why don't you have jobs? You’re wasting your time!"

"We can't get jobs anywhere. Interviews are brutal!" they would reply.

"Come have some fun! Join my company. The pay is humble, but I offer equity. Who knows? Maybe one day you'll get rich!" he would say.

And more would come.

One week after hiring the final group, he gathered all the employees for an all-hands meeting. He wanted to announce the equity arrangement, so everyone would know where they stood. He started with the most recently hired people.

"If you just got here last week, you each get one share."

Everyone was happy. If they were new, they were thankful for what they received; the others were happy because they were expecting even more. But one by one, as he called out each group that had been hired, he announced the same thing: they would each receive one share.

Now the workers were angry and began to grumble.

"The people that just got here last week got one share, the same as us. We've been here for three years. How is that fair?"

But the founder answered:

"I am not being unfair. I told you I would give you a healthy percentage. You own a large percentage of the company. You own one part among relatively few. Find me a company anywhere that would give such a high percentage. I want everyone that works here to be equal. That was my plan from the beginning. Are you angry because of how I chose to give my ownership away? Let the newbies be rewarded as much as the veterans, so it’s clear how much we all own, and we can move forward without conflict or politics."

As the employees grabbed their coats to go home for the night, the founder stood up once more and said,

"Wait just one more second. I forgot to announce what I will receive. After all, I’ve been here longer than you all, and I gave my own money to pay your salaries. I, too, will receive one share—just like all of you."

There were gasps heard around the room.

"From this moment on, we share the company equally. Tomorrow we will seek agreement for our new organization. Get some sleep. You are all founders now."

— A possible modernization of the Parable of the Workers in the Vineyard (The Bible: Matthew 20).