Profit sharing

Today's a pretty big day at my company, as our profit sharing contribution for 2015 is being disbursed into our retirement accounts. Our company is contributing $620 million, which correlates into 15.6% of eligible salary (equal to approximately eight-weeks of pay) for each eligible employee.

Do your employers offer profit sharing to it's employees? If so, how does it work for each of your respective employers?

Comments

  • chefkungfuchefkungfu Posts: 645
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  • dromundsdromunds Posts: 8,136
    That sounds good, John. My experience with "profit sharing" has been more in line with a recent Bob Dylan song: "We looted and plundered on distant shores, why is my share not equal to yours?"
  • msgmsg Posts: 4,945
    Is that in addition to retirement contribution matching?
    As I understand it, some companies don't match retirement contributions, but offer larger profit sharing disbursements. 15% seems like a nice chunk.

    I work for a small dairy farm, designing RPi based automated milking machines. They contribute to both retirement and profit sharing. Their retirement contribution seems pretty standard in matching half of the employee contribution up to 6% employee pay, meaning, they'll contribute a max of 3%. Then they do profit sharing distributions at the end of the year after the accountants roll the bones and work other Dark Arts to come up with numbers. No one shows up with new cars after. But one guy did commute by gyrocopter for a while.
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  • scubalabscubalab Posts: 2,696
    15.6% is VERY nice. Our company does an ESOP in lieu of 401k match. The nice thing is the company stock has always done better than the market. We usually get 3-5% of our annual salary in stock. However, since there's no 401k match, it's just OK...

    The downside is every year, our company goes through the nondiscrimination testing (NDT) for their 401k plan. Since they don't match, there's no real encouragement for everyone to get in the 401k. I max out my annual contributions ($18,000). And since I'm barely considered a HCE (highly compensated employee <-- That's funny!), they've sent me money back for the past two years (a couple thousand). It normally wouldn't be a big deal since we have just rolled it into an IRA for my wife, but it makes our taxes a PITA! If they did a match, I'd suspect more people would partake in the 401k, and the company would pass the NDT, and I'd be able to invest (and KEEP IT invested) the maximum... I can't really complain though, I just consider myself blessed/lucky to have a relatively stable job and a steady income. Too many people can't say the same...

    I LOVE Southwest. If they treat their employees as good as their customers (sounds like they do), it's probably a great place to work. Congrats John - sounds to me like you deserve to buy yourself a nice new piece of gear!
  • tonybtonyb Posts: 31,132
    Cool, companies left doing that though are dwindling. Suck it up while ya can bro.
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  • John MegadethJohn Megadeth Posts: 2,157
    msg wrote: »
    Is that in addition to retirement contribution matching?
    As I understand it, some companies don't match retirement contributions, but offer larger profit sharing disbursements. 15% seems like a nice chunk.

    I work for a small dairy farm, designing RPi based automated milking machines. They contribute to both retirement and profit sharing. Their retirement contribution seems pretty standard in matching half of the employee contribution up to 6% employee pay, meaning, they'll contribute a max of 3%. Then they do profit sharing distributions at the end of the year after the accountants roll the bones and work other Dark Arts to come up with numbers. No one shows up with new cars after. But one guy did commute by gyrocopter for a while.

    Our company matches 401(k) contributions 100% up to 9% of our eligible salary. Our benefits package is one of (if not the best) in the industry.

    I received some additional good news yesterday, but it'll be public next week. Suffice to say, I'm very fortunate and proud to serve my company.
  • BetaBeta Posts: 263
    Profit Sharing? The management of the NYSE traded fortune 500 company I work at would steal a kidney from me and try to sell it to increase revenue (i.e. quarterly results) if they could get away with it.

    We got the good ole "your being converted to 1099 tax status and we will no longer be providing you with any benefits whatsoever" back in November 2011. At least they were kind enough to give us about a month or so advance notice of the transition.

    Good for the OP. Enjoy it why it's still there.
  • lightman1lightman1 Posts: 10,398
    I got a pocket knife with the company logo on it.
    Sumbitches.
  • motorhead43026motorhead43026 Posts: 3,196
    My company complains I get to big a share of their profit as it is. No profit sharing for me other than the weekly check and 401k match.
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  • tonybtonyb Posts: 31,132
    Be glad you got the 401k match bro, many are dumping that also. My wife's company restructured the bonus program so they only can make roughly 25% tops of what they used to. So this year, right after bonus's will be paid out, they will announce forced furloughs for 2 weeks a person.

    Give on one hand, take away on another, it's all a sham. She also gets 5 weeks vacation, good luck getting it approved though. Whats the point of working long enough to obtain these benefits if you can't use them ?

    The furloughs are so that the executives can meet the financial goals set forth by the board of directors.....and so they can get their big fat bonuses. That's the real way business works, big business anyway.
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  • John MegadethJohn Megadeth Posts: 2,157
    That sucks. Our company has never had furloughs in over 45 years, so that's another thing I'm grateful for.
  • motorhead43026motorhead43026 Posts: 3,196
    edited April 2016
    Yep, I have been in the big corporate meat grinder for 30 years now. The motto is "Its not what you did for me today, but what can you do for me tomorrow" .....and it better not be equal too, or less than you did for me today.
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    Other; S60'S, M10 series II, M7C's, Hafler XL600 amp, RB-980BX, Parasound HCA-1500 amp , P5 preamp, all in storage. All speakers have had crossover rebuilds, resulting in a small fortune invested in Sonicaps, and tweeter upgrades.

    Political memes posted as fact and accepted as fact, are sign language of the ignorant, for the ignorant

    tonyb said " but even socialists can do a good thing here and there

    Social media makes dumb people dumber and smart people dumb then dumber.
  • tonybtonyb Posts: 31,132
    Yep, I have been in the big corporate meat grinder for 30 years now. The motto is "Its not what you did for me today, but what can you do for me tomorrow" .....and it better not be equal too, or less than you did for me today.

    Good one, can't tell you how many times I've dealt with that B.S.
    You get to a point where your the best at what you do, then they start taking resources away and expect the same production. You bust your rear to make it happen, then they figure if you can do x amount of work with x resources, you can do more tomorrow with the same or less.

    Got to a point where everyday you had to pull a rabbit out of your hat to make things happen. Screw them....so I slowed down. The more you give the more they want....and with no additional pay either.

    I'm normally not like that, I'll play the loyal dude and tow the company line until I feel I'm being taken advantage of. Then.....Tony can play that game too in reverse. I guess they never taught some of these Bozo's in college that you reap what you sow.
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  • codyc1arkcodyc1ark Posts: 2,539
    Ours does that as well. Sadly, this year was only 15% of salary. I've been here going on ten years now, I think my best year was 23.5%. I don't think we'll ever see numbers like that again anytime soon. :neutral:
  • smglbrthsmglbrth Posts: 1,149
    lightman1 wrote: »
    I got a pocket knife with the company logo on it.
    Sumbitches.

    You got more than I did...
  • Easy RunninEasy Runnin Posts: 442
    The downside is every year, our company goes through the nondiscrimination testing (NDT) for their 401k plan. Since they don't match, there's no real encouragement for everyone to get in the 401k. I max out my annual contributions ($18,000). And since I'm barely considered a HCE (highly compensated employee <-- That's funny!), they've sent me money back for the past two years (a couple thousand).

    You better keep that one under your hat. If one of the bean counters see this he will recommend to management that your wage increases be limited so you fall back under the HCE limit. Then your max contributions will increase the NHCE calculation which will help the HCEs.
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  • mrbironmrbiron Posts: 5,084
    smglbrth wrote: »
    lightman1 wrote: »
    I got a pocket knife with the company logo on it.
    Sumbitches.

    You got more than I did...

    And you got about twice that of me......
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  • scubalabscubalab Posts: 2,696
    The downside is every year, our company goes through the nondiscrimination testing (NDT) for their 401k plan. Since they don't match, there's no real encouragement for everyone to get in the 401k. I max out my annual contributions ($18,000). And since I'm barely considered a HCE (highly compensated employee <-- That's funny!), they've sent me money back for the past two years (a couple thousand).

    You better keep that one under your hat. If one of the bean counters see this he will recommend to management that your wage increases be limited so you fall back under the HCE limit. Then your max contributions will increase the NHCE calculation which will help the HCEs.

    That's a good point! Although, I think they'd be opening a legal can of worms if they did something like that, no matter how they try to justify it... I can say the company I work for is for the most part, a great firm. So, I don't think they'd pull that.
  • tonybtonyb Posts: 31,132
    Russ got a pocket knife ?? As Jim Croce sang, some things you just don't do and giving a weapon to Russ is one of them. :p

    Maybe next year he'll get a Taser. lol
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  • maximillianmaximillian Posts: 2,074
    Employee discounts are nice, if you work for one that makes products that you want.
  • John MegadethJohn Megadeth Posts: 2,157
    Today's our company's ProfitSharing Day! This year, the Company is contributing $586 million toward profit sharing, and all eligible employees get 13.2% of their salary for 2016. This year, they're changing it up a bit, with 10% going toward our profit sharing accounts and 3.2% dispersed as cash. On top of the raise I received last week, today's paycheck is pretty sweet! The 3.2% is currently being rolled onto our walls at home, as we're having the house painted this week :)
  • Toolfan66Toolfan66 Posts: 14,208
    Our company does the 401k match as well..
  • John MegadethJohn Megadeth Posts: 2,157
    Toolfan66 wrote: »
    Our company does the 401k match as well..

    Nice. What do they match up to?
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