Back مشاركة الربح Arabic Tantiéma Czech Gewinnbeteiligung German Participación en los beneficios Spanish سهیم کردن کارگران در سود کارخانه‌ها FA Tantjema LT Programa de Participação nos Lucros e Resultados Portuguese Tantieme Romanian Тантьема Russian Gainsharing SIMPLE

Profit sharing

This article is about a type of business incentive plan for employees. For a method of finance used in Islamic banking, see Profit and loss sharing. For the retirement plan, see Profit-sharing pension plan.

Profit sharing is 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.[1][2][3] In publicly traded companies these plans typically amount to allocation of shares to employees.

The profit sharing plans are based on predetermined economic sharing rules that define the split of gains between the company as a principal and the employee as an agent.[4] For example, suppose the profits are , which might be a random variable.[4] Before knowing the profits, the principal and agent might agree on a sharing rule .[4] Here, the agent will receive and the principal will receive the residual gain .[4]

Profit-sharing tends to lead to less conflict and more cooperation between labor and their employers.[5][6]

  1. ^ Monroe, Paul (1896). "Profit Sharing in the United States". American Journal of Sociology. 1 (6): 685–709. ISSN 0002-9602.
  2. ^ Monroe, Paul (1899). "Profit-Sharing and Cooperation. I". American Journal of Sociology. 4 (5): 593–602. ISSN 0002-9602.
  3. ^ Monroe, Paul (1899). "Profit-Sharing and Cooperation. II". American Journal of Sociology. 4 (6): 788–806. ISSN 0002-9602.
  4. ^ a b c d Moffatt, Mike. (2008) About.com Sharing Rule Archived 2016-03-03 at the Wayback Machine Economics Glossary; Terms Beginning with S. Accessed June 19, 2008.
  5. ^ Dean, Adam (2015). "The Gilded Wage: Profit-Sharing Institutions and the Political Economy of Trade". International Studies Quarterly. 59 (2): 316–329. doi:10.1111/isqu.12200. ISSN 0020-8833.
  6. ^ Dean, Adam (2016). From Conflict to Coalition. Cambridge University Press. ISBN 978-1-107-16880-0.