> So, the message that is very easy to take from this (since the employees know they work for a profit maximizing firm) is that Basecamp's own expectation of it

> So, the message that is very easy to take from this (since the employees know they work for a profit maximizing firm) is that Basecamp's own expectation of its future profitability was that the 10% profit sharing was likely to be less expensive than the benefits it replaced. Or that they thought providing a monetary benefit, which each employee is free to spend as they wish, is a more attractive packet and/or better due to the reduced management overhead. Also, depending on how much the benefits cost them and how many employees used them, this might still be a better option for both sides.