profit sharing plan



Employee motivation plan (established and maintained by an employer) under which employees receive a share of the firm's profits determined by an agreed upon formula. See also stock bonus plan.

Use profit sharing plan in a sentence

  • I was excited to be a part of the profit sharing plan because it would mean that I would make some more money.

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  • You should always try to have a good profit sharing plan in place when you are trying to make a good offer to potential buyers.

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  • The company that I work for has a profit sharing plan that allows me to receive shares of their annual profit margin, which is a nice incentive for me to make more sales.

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