It's not so much the carrot or returns as the whip of competition. That pretty much eliminates significant differences in behavior of companies subject to it.
Carrol -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of nathan tankus Sent: Monday, December 19, 2011 7:53 PM To: [email protected] Subject: Re: [Pen-l] Worker-owned companies? Non-profits still run surpluses as log as it furthers the stated goal of the organization. the big difference is that money is that profits are not distributed. in other words they go from "profit maximizing" to "surplus maximizing" and tax exemptions on income. It is difficult to see a monumental difference in their incentives. With the exception being that their pay is somewhat more scrutinized by the government and the decisions process of consumers (of for profit companies goods) and donors are substantially different. According to the Cornell study below, there is a positive correlation between firm size and CEO pay which may create an incentive for expanding organizations. www.irs.gov/pub/irs-pdf/p4220.pdf http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1201&conte xt=articles -- -Nathan Tankus ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------- _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
