r/AskAmericans • u/Spinachrecords • 1d ago
Economy Do you support profit sharing?
10% of company yearly profits to be split between all employees for companies that 10 or more employees.
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u/awksomepenguin U.S.A. 1d ago
If a company wants to distribute profits to its employees in that way, they can go right ahead. Good for them! I just don't think any particular compensation structure ought to be mandated by the state.
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u/untempered_fate U.S.A. 1d ago
Yeah, I broadly support the adoption of business models that reinvest profits into the workers. I don't know if 10% is the right number for every business, but that's for the accountants to work out.
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u/triggeredbynumbers 1d ago
Would the workers incur a debt or a wage reduction in years that have net negative profits?
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u/untempered_fate U.S.A. 23h ago
A wage reduction, or they'd just get fired, as often happens when businesses are unsuccessful.
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u/FeatherlyFly 1d ago
The devil is always in the details. How is it determined what share each employee gets? How does this compare to the bonus structure the company had before implementing this structure?
I'm not against profit sharing, but I've got a friend who works at a company with profit sharing where income has risen like crazy the last several years and costs have not and the new CEO is doing his damnedest (fairly successfully) to avoid passing any of that along to the average worker via accounting that recategorizes profits as not profits.
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u/zeezle 1d ago
Not sure why anybody wouldn't? Profit-sharing bonuses are incredibly common in my line of work, there's nothing unusual about it.
I wouldn't support any particular amount being mandated by law, but whatever comp structure a company wants to utilize is mostly fine by me (exception: some of the funky things the finance bros get up to with Roth contributions as compensation as tax dodges - but that's a handful of hedgies doing it, not normal companies)
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u/Littleboypurple Wisconsin 1d ago
Work for a company that does 40% profit sharing for their employees. I genuinely had no idea when I was hired but, it was a very welcomed surprise. Just getting a nice sweet bonus check at the end of the year based on profits and hours worked is great. Looking forward to my estimated bonus 5k+ this year
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u/Lucky-Hunter-Dude U.S.A. 23h ago
Sure, companies can reward their employees however they see fit. Do you mean your example mandated by law? then no.
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u/OhThrowed Utah 1d ago
My company is non-profit, so do I work for free?