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The concept of fluid shares was coined by Jonar Nader in his book How To Lose Friends And Infuriate People . The fluid share program, designed to start a "chain-reaction" in underperforming companies, involves four steps:
  • The Average Salary in the company (from General Manager to Receptionist ) is calculated, and assigned to every employee.

  • A generous portion of the Net Profit of the company — for example, ten percent — is distributed amongst the employees at the end of each month.

  • An education campaign is begun, to teach people about the effort required to generate a dollar of net profit after Tax .

  • Targeted Cost-reduction goals.


As Nader predicted in his book, the idea has been widely derided by critics, and labelled as Marxist . However critics often ignore vital implications of the scheme, such as increased pressure for all employees to put in the same high level of effort, and to reduce Headcount .

Fluid shares have been implemented, but in some cases with a small salary difference (eg. US$5,000 between the top and bottom of the organisation).


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