Incentive plan
Introduction
Profit sharing refers to various incentive plans created by companies that provide direct or indirect payments to employees who depend on the companies' profits in addition to their regular salaries.
Publicly held companies assign a number of shares to their employees. In this way, the net profits of the companies also translate into the profits of the employees.
Profit-sharing plans are based on established exchange rules that define the assignment of companies as principals and employees as agents.[1].
(x).
References
- [1] ↑ Moffatt, Mike. (2008) About.com Sharing Rule Archivado el 3 de marzo de 2016 en Wayback Machine. Economics Glossary; Terms Beginning with S. Accessed June 19, 2008.: http://economics.about.com/od/economicsglossary/g/sharingrule.htm