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profit sharing
Profit sharing refers to various incentive plans introduced by businesses that provide direct or indirect payments to employees that depend on company's profitability in addition to employees' regular salary and bonuses. In publicly traded companies these plans typically amount to allocation of shares to employees.
The profit sharing plans are based on predetermined economic sharing rules that define the split of gains between the company as a principal and the employee as an agent.〔Moffatt, Mike. (2008) About.com ''(Sharing Rule )'' Economics Glossary; Terms Beginning with S. Accessed June 19, 2008.〕 For example, suppose the profits are x, which might be a random variable.〔 Before knowing the profits, the principal and agent might agree on a sharing rule s(x).〔 Here, the agent will receive s(x) and the principal will receive the residual gain x-s(x).〔
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抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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