Profit-Sharing Plan


Profit-Sharing Plan
A plan that gives employees a share in the profits of the company. Each employee receives a percentage of those profits based on the company's earnings.

Also known as "deferred profit-sharing plan" or "DPSP".

This is a great way to give employees a sense of ownership in the company. The company decides what portion of the profit will be shared. And there are typically restrictions as to when and how you can withdraw these funds without penalties.


Investment dictionary. . 2012.

Look at other dictionaries:

  • profit-sharing plan — An incentive system providing that employees share in company s profits through a cash fund or a deferred plan used to buy stock or bonds. Bloomberg Financial Dictionary …   Financial and business terms

  • profit-sharing plan — An arrangement in a corporation whereby the compensation of officers, agents, or employees is in part dependent upon or payable out of profits of the business. 19 Am J2d Corp §§ 1413 et seq …   Ballentine's law dictionary

  • Deferred Profit Sharing Plan - DPSP — An employer sponsored Canadian profit sharing plan that is registered with the Canadian Revenue Agency. On a periodic basis, the employer shares the profits made from the business with all employees or a designated group of employees. Employees… …   Investment dictionary

  • Profit sharing — Profit sharing, when used as a special term, 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… …   Wikipedia

  • profit sharing — profitsharing, adj. the sharing of profits, as between employer and employee, esp. in such a way that the employee receives, in addition to wages, a share in the profits of the business. [1880 85] * * * System by which employees are paid a share… …   Universalium

  • profit-sharing — UK US (also profit sharing) noun [U] ► HR a system by which employees receive a part of the profits of a business: »The company s costs increased due to higher employee profit sharing. »a profit sharing agreement/plan/scheme …   Financial and business terms

  • profit sharing — profit shar·ing n: a plan under which employees receive a part of the profits of an enterprise Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Profit-sharing agreement (USA) — A profit sharing agreement in the United States is the agreement that establishes a pension plan maintained by the employer to share its profits with its employees.HistoryA profit sharing agreement used to be supplemental to a type of pension… …   Wikipedia

  • profit-sharing scheme — A scheme by which employees share in the profits of a business, usually through some type of share ownership. See employee share ownership plan; employee share ownership trust; savings related share option scheme; share option See also gain… …   Big dictionary of business and management

  • profit-sharing scheme — A scheme by which employees share in the profits of a business, usually through some type of share ownership. See: employee share ownership plan, employee share ownership trust, savings related share option scheme, share option …   Accounting dictionary