Tag: sharing

Sample Profit Sharing Agreements: What Do Successful Companies Use?

Posted on February 20, 2016

Sample Profit Sharing Agreements: What Do Successful Companies Use?

    Direct Cash Plans

      The most common and simplest sample of a profit sharing agreement is regular variable pay linked to company profits, where the employer receives a predetermined percentage or share of profits as a cash bonus or stocks at the end of the fiscal year.

    The earliest instance of such profit sharing occurs in the 19th century, when companies such as General Foods and Pillsbury distributed a percentage of their net profits to their employees as a bonus. (more…)