What is Profit sharing? Explain Profit sharing, Define Profit sharing, Meaning of Profit sharing

by Retirement Advisor | Jul 31, 2022 | Profit Sharing Plan | 1 comment

#Profitsharing #audioversity
~~~ Profit sharing ~~~

Title: What is Profit sharing? Explain Profit sharing, Define Profit sharing, Meaning of Profit sharing
Created on: 2018-11-26
Source Link:

——

Description: Profit sharing 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. In publicly traded companies these plans typically amount to allocation of shares to employees. One of the earliest pioneers of profit sharing was Englishman Theodore Cooke Taylor, who is known to have introduced the practice in his woollen mills during the late 1800s . 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. For example, suppose the profits are x {displaystyle x} , which might be a random variable. Before knowing the profits, the principal and agent might agree on a sharing rule s {displaystyle s} . Here, the agent will receive s {displaystyle s} and the principal will receive the residual gain x − s {displaystyle x-s} .

——

To see your favorite topic here, fill out this request form:

——

Source: Wikipedia.org articles, adapted under license.
Support: Donations can be made from to support Wikimedia Foundation and knowledge sharing….(read more)