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At Hewlett Packard in the 1970's all employees (except the executive suite) got the same percentage of profit sharing. Twice a year, after announcing earnings,
by Doctor-R 3y ago
At Hewlett Packard in the 1970's all employees (except the executive suite) got the same percentage of profit sharing. Twice a year, after announcing earnings, management would announce it as some number of extra days of pay. Usually eight to ten days of extra pay. This was based on corporate profit put into a formula. This was independent of product division, level, location, etc. There was also an employee stock purchase plan, but no options.
Intel had a similar plan with profit sharing based on corporate profits. plus a profit sharing based on product division success.
Today, corporation focus is strictly improving the stock price. Therefore paying more to staff with profit sharing is bad.