Profit Sharing
topic on 3 shows · 6 statements across 4 episodes
Founders 
Startups For the Rest of Us 
Top Founders
6 statements about Profit Sharing, every show
Walling: Distributing over 50% of profits to employees threatens company viability
“I believe there was someone who was giving away more than 50% of their profits to their employees, and that, it makes your business, ah, I'll say almost inviolable. It's just, if you ever go to sell, like, it's just not a great way to structure profit sharing.…”
Sharing profits with frontline retail employees unexpectedly reduces internal company theft
“One benefit, one unexpected benefit of sharing profits with employees, less theft from within.”
BlogVault's profit-sharing prioritizes tenure over seniority
“So for example, if you are a very senior person, but you have only spent a year in BlogVault, then the then the profit share would be lower than a person who is, who might be junior than you, but has spent five years at BlogVault.”
Chaudhry: BlogVault allocates over 20% of annual profits to employee profit-sharing
“It's higher than that. Yeah, it's higher than that.”
Walling: Profit Sharing Better Aligns Incentives Than Discretionary Bonuses
“Lastly, bonuses are tough because incentives aren't exactly aligned, are they? Because something about profit sharing that's nice is if the company doesn't turn a profit that year, people don't get the profit sharing. Whereas if the company doesn't turn a prof…”
Walling: Do Not Tie Profit Sharing to Employee Performance Reviews
“One thing I would stay away from personally is using performance evaluations as some type of thing that affects profit sharing. I think that that can be dangerous as different managers across a company might rate people differently. I also think, you know, if …”