I use equal governance shares a lot but I’m curious about the decision to weight profits by…
joshuavial
22

Instead of a linear function to weigh dividends we chose to use a logarithmic function that “catches up” faster over time. As a unit of time to use the logarithmic function on, half years seem to give fair results, i.e. curves that catch up “fast enough”. So someone who has been a partner for 3 years would get 2.58x in dividends compared to someone being a partner for 1 year (3x linear). Two years later, the difference will have shrunk to 1.29x (1.67 linear). Here is a spreadsheet I used to play around with the numbers in order to get a better grasp on this. In case you would like to do the same, you can do so with your own copy of it.

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