A profit sharing foundation is an efficient and simple way to involve and reward employees when the company achieves established goals. The company’s personnel are thus given the opportunity to participate in the profits they help create.
Skilled personnel are motivated to stay with the company and interest increases when recruiting.
Clarifies the connection between performance and reward
The employees see a clear connection between performance and reward and can thus contribute and influence their profit share.
In addition to contractual salary
Allocation of profit shares does not affect usual salary.
Flexible regulatory framework - the company decides
The company controls how allocation profit shares are allocated and how the grounds for calculation are formulated.
Deductible for the company
Subject to certain limitations, the company may deduct for provisions to the profit sharing foundation.
The company can decide
- Which employees are covered by profit sharing.
- How the capital may be invested.
- When disbursement is made.
It is possible for profit-sharing foundations to invest in funds or individual securities. The foundations also have the possibility to invest in the company’s shares.
Supplemental the pension
The profit share can be a good addition to the pension.