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profit sharing
noun
: a system or process under which employees receive a part of the profits of an industrial or commercial enterprise
Examples of profit sharing in a Sentence
Recent Examples on the Web
Eligible employees last year received up to $4,400 in profit sharing.
—Mary Divine, Twin Cities, 17 Dec. 2024
Instead, the government has relied on financial incentives, through an uncodified system of internal profit sharing that links the bureaucracy’s financial performance to individual remuneration.
—Yuen Yuen Ang, Foreign Affairs, 16 Apr. 2018
Every employee who launches a new venture receives a cash bonus and profit sharing once the product is live.
—Alexandre Bonvin, Forbes, 23 Oct. 2024
Coaching companies are handling the account management, tooling and lead acquisition so coaches expect profit sharing.
—Chelsea Seid, Forbes, 13 Sep. 2024
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Word History
First Known Use
1872, in the meaning defined above
Dictionary Entries Near profit sharing
Cite this Entry
“Profit sharing.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/profit%20sharing. Accessed 9 Jan. 2025.
Legal Definition
profit sharing
noun
profit shar·ing
: a plan under which employees receive a part of the profits of an enterprise
More from Merriam-Webster on profit sharing
Britannica.com: Encyclopedia article about profit sharing
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