employee at small business. what should I propose to my boss?

[jaredmt]

I am currently the only employee at my company. I'm an engineer and have been working here for about 9 months. I have a good business relationship with the boss.
I'm working for very low wages (less than half of starting engineer) but to make up for it I am supposed to get bonus on the profits we make. When/if this company takes off this could be a good deal as long as nothing goes wrong. As of now, nothing about this bonus is in writing.

That's why i am here because I am wondering what exactly I should ask to get in writing. should I just get a contract where I collect a certain % of the profits?
what if i work here for 2 years then the company takes off and I just get fired? all that work for low wages for nothing.
Or should I also ask to own a small part of the business? if so, how much of the business should i ask for?

I have no money to invest, my boss has all the capital. he has been running this company for 10+ years. i am only investing by accepting low wages. but i have helped take a business that was losing a lot of money very fast and i help fixed the problems. we are now at the point where we aren't losing but aren't taking off yet. and I definitely see this company taking off soon. I have proven to be the only engineer he can trust so far so he definitely wouldn't want to see me work elsewhere knowing i can make higher wages. but i don't want to waste my time, i need a deal that will make it worth my while. any advice would be appreciated

should I propose:
1) contract for bonus salary
or
2) contract AND ownership/partnership/?

[Freelancier]

You should definitely talk with him about getting your agreement in writing and then see what he proposes for details. Then decide if this matches what you think is fair and if not, then you have then you counter-offer what you think is fair-er. If he's an above-board person, he'll be happy to put your agreement in writing to make sure it survives in case he gets hit by a bus.

[huggytree]

i had a job where i took on extra responsibities and was told next raise time i would get extra.....and of course i didnt

i wouldnt DO anything with the promise of 'future' compensation

if you can get a job for 2x wages id take it....then give your current boss the option ....pay what YOUR WORTH or find someone else.....

if he's been in business for 10 years and has 1 employee i doubt he's anywhere near being super successful and you becoming his rich 2nd in command

id send out my resume asap and work that angle....you can ask him when your bonus is coming.....but we both know the answer...it probably isnt

by finding a new job YOU have all the leverage........he does what you want or you go

[nealrm]

First - you need to get everything in writing. An unwritten contract is worth the same as the paper it is written on. In addition, what you might be thinking of as a bonus may be very different than what he thinking. Also, you need some way of verifying the profit amount. Based on your statement that you are the only engineer that he has found that he can trust. I am assuming there were other engineers. So what happened to them??? Did they have the same deal as you, only to quit when the bonus didn't pan out??

[Paul]

No matter how long he has been running the company if it is losing money it might as well be the first day of business. In other words his ‘equity’ is worthless; he hasn’t really built anything of value.

With that in mind, go for the throat, if you really think you are the one that will make something of it. Don’t be shy; you have nothing to lose except the half pay job. Also, remember, HE has nothing to lose either If his company is losing money! You may be his only hope, unless he can find another half pay engineer.

Promises of bonuses and future considerations, as everyone has said, are worthless. If he were serious he would have already given you documentation.

[jaredmt]

thanks for the replies. I plan to ask to get it in writing soon.What I would like to know is do you guys think that asking to own shares is asking too much? or is that a reasonable request to go along with my bonus pay?

edit: or does it depend on how much bonus I get?

[Freelancier]

If you don't own at least 50.1% of a private business, you really don't own any of it, because you have no control over the big decisions and you can't sell your shares (because who would want them and how would you find those people to buy them and how would you value them? Too complicated!).

I'd go for a bonus. A big bonus tied to some financial outcome that you can claim is directly related to what you're doing for the company.

[Blue Hen]

If you don't get something in writing on the first day, you'll never get it. If you haven't confronted him yet, just know that he will make tons ofexcuses as to why it's not a good time for him to draw up the contract. He will always be really busy. I am a pessimist when it comes to this stuff because I have seen a lot of people get hurt in your situation. Confront him, and if you don't have it in 24 hours tell him you quit and aren't coming back until it's done.

Pay for a lawyer to review it before you sign. Do not sign right then and there in front of him.