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What if Profit Sharing was Required?

I just thought because of the recent post on Disney, if a company was legally required to enroll every employee in a profit sharing program scaled according to the number of employees it has, then a lot of corporate greed could be solved. A set fixed percentage of profits could be paid out to the employees either in a vesting retirement fund or payout based on the rolling averages of profit with a reserve fund. Sure they could try to cut benefits or wages to offset the cost but if the business is wildly lucrative the employees will reap some gains and if the business is not their their offers will not be competitive. The cost to the business would also be relative to how successful it is, naturally progressive. Maybe it's a bad idea but I don't immediately see why it would fail if it actually was implemented.


I just thought because of the recent post on Disney, if a company was legally required to enroll every employee in a profit sharing program scaled according to the number of employees it has, then a lot of corporate greed could be solved. A set fixed percentage of profits could be paid out to the employees either in a vesting retirement fund or payout based on the rolling averages of profit with a reserve fund.

Sure they could try to cut benefits or wages to offset the cost but if the business is wildly lucrative the employees will reap some gains and if the business is not their their offers will not be competitive. The cost to the business would also be relative to how successful it is, naturally progressive. Maybe it's a bad idea but I don't immediately see why it would fail if it actually was implemented.

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