Originally Posted by
SharpestTool
Sure it is. 5.75% of that figure goes from variable (at risk) compensation to fixed compensation. Last time I checked, profit is not guaranteed. In fact I endured a bankruptcy as a consequence of the lack of profits.
Is profit sharing a cost to the company? Maybe technically it is, I don't know but I don't consider it as at risk compensation. IMO profit sharing does not "cost" the company anything. Why? Because it comes out of profit! Profit sharing is a "bonus" in the good times and an easy out for the company in bad times.
As far as the bankruptcy goes, I was there too and if you forgot, we gave up a heck of a lot in pay rates just prior to and in bankruptcy so what's your point?
Denny