'My Boss Keeps 95% Of The Profit While I Do All The Work,' An Employee Says, Asking, 'Should I Undermine Them And Start My Own Company?'

Are you working tirelessly to keep a business running, managing operations, building client relationships and essentially doing the job of a CEO – only to find out that you're earning just a fraction of what the company makes? 

That's exactly the situation one Reddit user shared recently, sparking a heated debate about ethics, business loyalty and the pursuit of personal success.

The poster explained that their boss bought the business after her husband passed away. She hired them to help run it, but now they do 95% of the work. Meanwhile, the boss and her sons, who don't help much, keep most of the profits. 

Don't Miss:

They were only paid a base wage and a 5% commission on sales, even though the company was becoming increasingly successful. As they put it, "If I help this woman build her company for the next few years, who knows what I'll be left with at the end of it? She says if I do well, she will give me 30% equity, but that's not in writing.”

The question to the Reddit community was straightforward but complex: should they stay loyal and continue building someone else's legacy or leave to start a competing business and finally reap the full benefits of their efforts?

“She's a nice lady but just loves her sons a lot, so she wants her son to take over the company, even though they have no interest or know-how.”

See Also: This 12,000 RPM Spinning Battery With Over $100 Million In LOIs Could Be The Missing Link For Green Energy — Here’s Why Early Investors Are Flocking To Invest Before Funding Closes

The Case for Leaving

Many commenters supported the idea of starting their own business, arguing that loyalty in business often goes unrewarded. "You will not make this person suddenly care enough about you to reward you proportionally," one user wrote. Others pointed out that their contributions outweighed their compensation, making it reasonable to seek greener pastures.

Starting a new business would allow them to take control of their future and fully benefit from their hard work. Some even suggested that they could outcompete their boss's business, leveraging the relationships and knowledge they've built. However, they also admitted feeling guilty: "Part of me feels very bad for doing this to her after she introduced me to this industry (albeit it was by my own capacity it has gotten this far)."

However, there's a big caveat – ethical and legal boundaries. Using client lists, trade secrets or other proprietary information could result in lawsuits, especially if the employee signed a noncompete agreement. Many commenters urged consulting an attorney before making any moves, moving geographies or working with different clients.

Trending: It’s no wonder Jeff Bezos holds over $70 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

The Case for Staying

While leaving may seem like the obvious choice, others argued that they owe something to the boss who gave them a chance after their first two businesses failed. “What about the part where op says he failed two businesses and she took a shot on him and gave him a place to work?” one commenter noted. "Why not just tell her what you told us? Give her a fair chance to bring you in on the 30% equity or whatever your terms are."

This approach would allow them to achieve their goals while maintaining integrity and preserving relationships.

Additionally, commenters warned about underestimating the challenges of running their own business. Entrepreneurship comes with significant risks and responsibilities, from managing overhead costs to dealing with legal compliance and employee issues.

Balancing Ethics and Ambition

The heart of the dilemma is balancing ambition with ethical considerations. Starting a competing business isn't inherently unethical, but the way it's done matters. Poaching clients or using inside information could damage their reputation and lead to legal trouble. Conversely, staying in a role where they feel undervalued could leave them resentful and stuck.

Read Next:

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!