Employee profit sharing plans?

searcher profile

November 13, 2019

by a searcher from Harvard University - Harvard Business School in Denver, CO, USA

Searchfunder group - I'm getting a little head of myself but in preparation for a couple deals in more "blue-collar" industries that I'm currently working on, has anyone had experience rolling out any profit sharing/bonus plans - any best practices/learnings to share? Thanks in advance all!

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commentor profile
Reply by an investor
from University of Pennsylvania in New York, NY, USA
Great question Justin. I'd be curious to hear from people who have done a round trip (buy and sell). What did they think about the value of these plans for incentivizing management and employees? In my previous career I instituted various incentive plans (options, profits interests, sale bonuses, etc.) but I always questioned whether it really drove behavior. The plans were often too abstract or complicated for people to translate to their daily job. In some - but not all - cases I thought simple annual bonuses seemed to do a better job.
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Reply by a searcher
from Northwestern University in Los Gatos, CA, USA
redacted - reach out if you want our redacted comp plan docs with explanations of how we use them. It’s been a great tool for us to align management with the ownership.
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