As a growing company it has some problems with HR issues. Some employees have behaved inappropriately but without consequence, and as the company was built on a lot of familiar, and occasionally nepotistic, hiring there aren't always avenues open to younger employees to resolve these problems. It can feel that there is something of an "Old Boys' Club" operating, but I don't believe it exists with malice, rather just a lack of awareness.
The policy on having no raises, rather increased profit sharing, and a lack of rewarded upward mobility is bad and definitely going to cause issues with talent retention.