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profit-sharing

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profit-sharing

System whereby employees share in a company's profits, either through profit-related pay (usually an additional payment when a firm's profits are good) or by offering employees shares or options to buy shares on preferential terms. Profit-sharing is designed to give the workforce a vested interest in their company's fortunes.

It originated in France in the early 19th century and was widely practised for a time within the cooperative movement.



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The company contributes about 12 percent of its pretax earnings to the profit-sharing plan.
Crain Communications has had an employee profit-sharing plan, and Crain was one of the first to establish life and medical insurance plans for workers and installed a comprehensive pension plan in the late 1950s.
A PROFIT-SHARING scheme relaunched almost a year ago has already paid out more than pounds 1.
 
 
 
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