Profit Sharing

October 27, 2013  |     |     |   0 Comment

Profit sharing refers to a business sharing a percentage of its profits with its employees or owners.

An employee’s share of profits generally depends on the company’s level of profitability, the employee’s base salary, and even the amount of time the employee has spent working for the business.

Profits can be shared to employees or owners as cash payments, shares in the business, or any other form of compensation agreed to by both parties.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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