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
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Payscale reports that the average total compensation, including commissions, bonuses, and profit sharing, ranges from $39,000 to $77,000 annually 2. Kody Boye, USA TODAY, 18 Feb. 2025 In December, in its latest round of profit sharing, the company announced that $17 million would be spread across its employee base, with a quarter of that allocated based on length of service. Ethan Karp, Forbes, 11 Mar. 2025 Her 2017 contract negotiation also included profit sharing and commitments for her production company Calamity Jane. Julie Jordan, People.com, 26 Feb. 2025 Let that sink in: American's income is less than what Delta will be paying out in profit sharing. Ted Reed, Forbes, 24 Jan. 2025 See All Example Sentences for profit sharing

Word History

First Known Use

1872, in the meaning defined above

Time Traveler
The first known use of profit sharing was in 1872

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Cite this Entry

“Profit sharing.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/profit%20sharing. Accessed 30 Mar. 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

Last Updated: - Updated example sentences
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