The Game with Alex Hormozi I always give away equity in my companies this is why | Ep 317
Jul 15, 2021
Discover the innovative concept of Phantom Equity, which aligns employee interests with company growth while providing a unique incentive structure. Learn how giving away equity not only benefits employees but also fosters loyalty and encourages them to contribute to the business's success. Dive into the potential downsides, including what happens if an employee leaves, and explore how this framework creates shared wealth for everyone involved.
AI Snips
Chapters
Books
Transcript
Episode notes
Wealth Creation Through Shared Success
- Alex Hormozi realized that growing his wealth involves helping others become wealthy.
- He learned that making more money for others, including employees, ultimately benefits him.
Sam Walton's Stock Option Program
- Sam Walton, in his book Made in America, discussed how Walmart's employee stock option program boosted growth.
- Walton regretted not implementing the program sooner due to the immense employee buy-in.
Phantom Equity Benefits
- Phantom equity incentivizes employees to think and act like owners, fostering engagement and alignment with company goals.
- This is achieved without giving away actual ownership but by offering a stake in potential future sale proceeds.
