The profit by itself does not tell the whole story. There are loan repayments, investments and possibly other financial deals.

> Founders who want to claim emotional connection to their employees should think about things like converting the company to full employee ownership

In a previous (very small) company I worked we have tried something similar that and, guess what, some people refused. They just preferred market level salary, freedom and no ownership worries, rather than take some risks. They were good employees so we just continued with them. But I learned that not everybody has the same views and wishes, and life is quite complex (I was a founder and was always interested by ownership, so was quite surprised about their reaction).

Just as most organizations beyond a certain size will have a few people who reach a plateau where they are content and do not want any more responsibilities or pay. They don't want a new title, they don't want more prestige, they don't even want a raise. They just want to do what they do.