Unique Ways for the World's Biggest Companies to Share Profits, Not Money But…

Jakarta, CNBC Indonesia – About 400 years ago, East India Trading Company (Vereenigde Oost-Indische Compagnie, VOC) was named the largest company in the world.

This title was achieved thanks to the VOC's success in trading spices. Everyone knows in the historical records of the VOC carrying out massive exploitation of Indonesia's natural resources. In Banda and Maluku, they also massacred local residents in order to control the spice 'paradise'.

Not only that, they are not only do business, but also have the power to rule the colonies. During that time, Herald van der Linde in Asia's Stock Markets (2022) wrote, they didn't care what happened in the colonies and only thought about making money.

Regarding profits, VOC as a public company also routinely distributes profits to investors. Investors are given a profit of 75% of the initial nominal value when placing money in the company.

It's just that the form of VOC profit sharing was not like today's in the form of cash, but rather kitchen spices, aka spices.

“The form of profit that was often paid was sacks containing pepper, nutmeg, cloves or other spices,” wrote the Herald.

Usually in one sack there are a variety of spices. Some are half filled with pepper. There are also combination kitchen spices. This distribution took place every time a ship carrying spices came to the Netherlands from Maluku.

Even so, don't underestimate the profits of VOC investors which are just kitchen spices.

Keep in mind, kitchen herbs or spices are the main trade commodities in the world that are sold at fantastic prices. Whoever has it will definitely be rich. Likewise the VOC investors

However, The VOC's decision to distribute kitchen spices as a profit share invited disaster. It turns out that the bags of kitchen spices actually disrupted market prices in Amsterdam.

After being investigated, it turns out that the investors who got the kitchen spices actually sold them back to the market. They are tempted by big profits from buying and selling spices in the market. Moreover, they quite often get free spices. As a result, price competition occurs in the market.

“The sudden abundance of pepper caused spice prices to plummet throughout Amsterdam,” said Herald van der Linde.

Even so, new changes occurred in 1646, or after 40 years of the VOC's existence. In this change, VOC profits began to be distributed using cash.

[Gambas:Video CNBC]

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