In some sense it is a profit sharing strategy. The owners will still have strategic spending goals for profits (growth, R&D, acquisition etc). Also, depending

In some sense it is a profit sharing strategy. The owners will still have strategic spending goals for profits (growth, R&D, acquisition etc). Also, depending on how long the company has been around, the owners may also have to pay down debts taken out to start/grow the company. That must be balanced against ensuring employees are adequately compensated vs the local market expectations.