Profit Sharing
Introduced first in the Gallatin glasswork factory in New Geneva, Pennsylvania, in 1794,profit-sharing plans in American business now number approximately 430,000. As defined by the Council of Profit Sharing Industries, these plans include any procedure under which an employer pays or makes available to regular employees, special current or deferred sums based on the profits of the business, in addition to their regular pay. A recent study indicates that some 25 percent of small firms offer profit sharing, and these companies seem to gain more in productivity as a consequence, compared with larger firms.