Profit sharing
Subject: Finance | Topics:

Profit sharing describes various incentive ideas introduced by businesses that offer direct or indirect payments to employees that be based upon company’s profitability as well as employee’s regular wage and bonuses. In publicly traded in companies these plans typically amount to allocation of gives to employees. The profit sharing plans use predetermined economic sharing rules that comprise the split of gains relating to the company as a principal as well as the employee as an agent.

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