If 40% of stock belongs to the employees, then each employee has 1% of the stock.
Now, if the ONLY thing you are proposing is that each employee VOTES as a 1% owner, that would be fine. But if that employee has 1% of ACTUAL STOCK, how do they pay for it? How many years wroth of work do you expect it to take for the employee to BUY 1% of the company's stock? What do you do when the quit/retire? Can they take the stock with them? Or are they required to sell it? To whom? To their replacement? And what if that replacement doesn't have the money? Or does the new employee have to take out a loan to buy that stock?
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