An arrangement by which an employer shares some of the profits with its employees.
This is where you receive a pre-arranged percentage of a company's profits in lieu of any requests for higher salary or benefits.
Paying a portion of the company profits to employees as a performance incentive in addition to their regular compensation.
Compensation arrangement whereby employees receive additional pay or benefits when the company earns or increases profit. ... read full article
Profit sharing entitlements are calculated based on a percentage of profits achieved by the company above a set level. These entitlements are placed in a pool which is then divided up and distributed to employees. In relation to an ESOP, the pool is used to fund the acquisition of shares in the employer company for the participating employees.
A company's incentive program whereby employees share a percentage of net profits.
A defined contribution plan in which employers allow employees to share in company profits. The employer’s contribution may vary from year to year with no minimum required. Funds generally accumulate on a tax-deferred basis until the employee leaves the company or retires. An employee’s retirement benefit depends on the amount in his or her account at retirement.
A profit sharing contribution is a percentage of compensation paid by the employer to all employees meeting eligibility requirements set by the plan document. An employer is not required to make a profit sharing contribution however, at the employers discretion, may do so on an annual basis. While the money is deposited to each eligible employee account and you may generally invest it as your money, you must satisfy vesting requirements before you fully control a profit sharing contribution.
employees are allowed to share in the profits of the business on the basis of some predetermined arrangement or formula. Page 139
A system to distribute a portion of the profits of the organization to employees.
an employment plan in which employees receive a part of the company profits if the profits reach a specified level —˜‰v•ª”z
An employer-sponsored retirement plan that allows employees to share in company profits. The employer makes contributions in profitable years to individual employee accounts. The account grows until the employee retires or leaves the company.
Profit sharing, when used as a special term, refers to various incentive plans introduced by businesses that provide direct or indirect payments to employees that depend on company's profitability in addition to employees' regular salary and bonuses.