0.0 Model Overview
Fair Enterprise channels the productivity surge Frank Stronach unlocked in Magna's early days: treat labor, management, community, and investors as partners, and the business compounds faster than traditional ownership splits allow.
Foundational principles
- Ownership is shared, not symbolic: cash and equity pools reach all contributors.
- Reinvestment is mandatory, funding R&D, training, and resilience buffers.
- Transparency underpins trust: formulas are fixed, audited, and published.
Performance flywheel
- Profit share rewards frontline insight and operational discipline.
- Mentorship ladders move talent from hourly roles into ownership pathways.
- Community investment reinforces the license to operate and recruit locally.
1.0 Profit Distribution
Net operating profit is divided into fixed shares that balance stakeholders while honoring site-level capital commitments. Once CAPEX repayment concludes, the released $1M flows proportionally into every bucket.
| Category | Share | Purpose | Post-CAPEX lift |
|---|---|---|---|
| Shareholder dividends | 20% | Fair return for capital providers while keeping senior debt interest-free. | +$200,000 |
| Employee profit pool | 10% | Quarterly profit share distributed equally per FTE at each site. | +$100,000 |
| Management participation | 6% | Aligns leadership incentives with frontline productivity gains. | +$60,000 |
| Research & technology | 7% | Funds continuous improvement projects and regenerative R&D. | +$70,000 |
| Social responsibility | 2% | Supports local food access, education, and community resilience. | +$20,000 |
| Reinvestment & taxes | 25% | Keeps working capital strong while meeting statutory obligations. | +$250,000 |
| CAPEX repayment | Fixed $1M | Seven-year, zero-interest repayment of site construction. | Replaced by profit pools after Year 7 |
Formula clarity
Every Adena site publishes audited net profit and downloads the same allocation routine. Employees can model their earnings with a published calculator that multiplies the site's quarterly profit by 10%, divides by active FTE count, and applies tax withholding.
2.0 Governance
The Fair Enterprise Council stewards profit allocation, capital requests, and charter compliance. Representation covers ownership, management, employees, and local community partners.
Council composition
- 2 seats — Investor representatives
- 2 seats — Site management
- 2 seats — Employee delegates elected annually
- 1 seat — Community stakeholder (education or food access)
Quarterly agenda
- Review site financials and certify profit-share calculations.
- Approve capital requests and R&D investments above $50K.
- Monitor charter compliance, safety, and labor standards.
- Publish community impact scorecard and mentorship outcomes.
Charter updates
Policy changes require two-thirds support across all council seats and an employee-wide ratification vote. This ensures any amendments preserve balance between profit, people, and community commitments.
3.0 Workforce Participation
Employees earn wages benchmarked to or above local living standards, plus profit share and long-term equity options once mentorship milestones are met.
Earnings pathway
- Base wage: state minimum wage plus role premium tiers.
- Profit share: equal per-FTE distribution each quarter.
- Equity notes: awarded at 36 months of service with clean audit record.
Mentorship ladder
- Tier 1: Technical proficiency and SOP certification.
- Tier 2: Cross-unit training and peer mentorship delivery.
- Tier 3: Profit-driver project leadership and council eligibility.
Every site maintains a transparent wage and bonus table. Employees can audit their hours and quarterly distributions inside the Fair Enterprise portal, with dual-language support provided for the full workforce.
4.0 Implementation Playbook
- Charter adoption: Site management signs the Fair Enterprise charter and publishes wage tiers before launch.
- Council formation: Nominate and ratify council members, schedule quarterly governance reviews.
- Financial integration: Configure accounting to tag net profit, CAPEX amortization, and profit-pool ledgers.
- Communication cadence: Host monthly stand-ups covering profit metrics, safety, and customer feedback.
- Audits and transparency: External auditors validate distributions annually; summaries move to public archive.
Toolkit
Toolkit downloads (charter template, council bylaws, profit calculator, and mentorship playbook) are maintained in the Adena operator portal. Contact the governance team for latest revisions.
5.0 Frequently Asked Questions
How are profit pools calculated?
We start with audited net operating profit, subtract fixed CAPEX repayment when applicable, then multiply the remainder by the charter percentages. The employee pool is divided by active FTEs reported to payroll that quarter.
What happens if a site misses its profit targets?
Profit pools flex with performance. If a quarter posts a deficit, council minutes document the recovery plan and profit-share resumes when net profit returns to positive territory.
Do employees receive equity?
Yes. After 36 months and successful Tier 2 mentorship completion, employees earn Fair Enterprise notes that convert to ownership units during liquidity events or site expansions.
Can franchises adopt Fair Enterprise?
Yes, provided they execute the charter, publish wage ladders, and host joint audits with the Adena governance team. Franchisees gain access to the same shared services platform.