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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Railroad police, for example, make substantially more money and get railroad retirement benefits, profit sharing and other benefits. Doug Ross, Chicago Tribune, 28 May 2026 With an employee ownership trust, the business is highly disincentivized from being sold, and employees benefit through profit sharing. Evan Edwards, Forbes.com, 27 May 2026 Opened up as well would be records of transactions between insurers and any of their affiliates, including fees, commissions, payments, or profit sharing agreements with managing general agents, claims handlers, reinsurers, or third party administrators. Ron Hurtibise, Sun Sentinel, 26 Feb. 2026 The last round of profit sharing checks from Stellantis, issued in early 2025, were down sharply from the previous year, with employees represented by the United Auto Workers receiving $3,780. Paula Wethington, CBS News, 26 Feb. 2026 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 5 Jun. 2026.

Legal Definition

profit sharing

noun
profit shar·​ing
: a plan under which employees receive a part of the profits of an enterprise

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