profit sharing


Definition of profit sharing

: 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 Still, American made a $1.68 billion profit in 2019 and gave $213 million back to employees in the form of profit sharing. Dallas News, "Pay dropped for American Airlines CEO Doug Parker in 2020, but pandemic pain is still to come," 29 Apr. 2021 The same rollover opportunity exists with respect to profit sharing, 401(k) and most other types of qualified retirement plan assets held by a decedent. Larry Light, Forbes, "How To Handle An Inherited IRA Without Getting Tax-Slammed," 26 Apr. 2021 Last year, about 47,000 General Motors workers averaged a profit sharing payment of $8,000, down from $10,750 for 2018 while about 44,000 Fiat Chrysler workers averaged $7,280, up from $6,000 for 2018. Phoebe Wall Howard, Detroit Free Press, "Ford UAW hourly workers earn $3,625 profit-sharing checks amid 2020 earnings dip," 4 Feb. 2021 In 2019, Delta recorded a full-year operating profit of $4.8 billion, leading it to pay employees a record $1.6 billion in profit sharing bonuses. Chris Isidore, CNN, "Delta turned record profit into a record loss in one year," 14 Jan. 2021 Delta did not have any profit sharing for 2020 -- only buyouts to encourage employees to leave the company voluntarily, as Delta and other airlines scrambled to cut staff and other costs. Chris Isidore, CNN, "Delta turned record profit into a record loss in one year," 14 Jan. 2021 For Gather general manager Jodi Munson, the conversations around worker governance and profit sharing are exciting but overwhelming, simply because the restaurant has never attempted such radical change before. Janelle Bitker,, "Even as Bay Area restaurants struggle, some seek to treat workers better," 29 Dec. 2020 Although specific terms were not disclosed for either, there is an element of profit sharing in the premium video on demand rentals between the studio and the exhibitors. Lindsey Bahr, Star Tribune, "Universal and Cinemark agree to shorten theatrical window," 16 Nov. 2020 Perennial popular employee benefits have included tuition reimbursement, profit sharing, productivity bonuses and a company-wide recognition program. Scott Talley, Detroit Free Press, "When the virus hit, they were there for their patients and for their employees," 8 Nov. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'profit sharing.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of profit sharing

1872, in the meaning defined above

Keep scrolling for more

Learn More about profit sharing

Time Traveler for profit sharing

Time Traveler

The first known use of profit sharing was in 1872

See more words from the same year

Statistics for profit sharing

Last Updated

3 May 2021

Cite this Entry

“Profit sharing.” Dictionary, Merriam-Webster, Accessed 12 May. 2021.

Style: MLA
MLACheck Mark Icon ChicagoCheck Mark Icon APACheck Mark Icon Merriam-WebsterCheck Mark Icon

Keep scrolling for more

More Definitions for profit sharing

profit sharing


English Language Learners Definition of profit sharing

: a system in which employees receive a part of the company's profits

profit sharing

profit shar·​ing

Legal Definition of profit sharing

: a plan under which employees receive a part of the profits of an enterprise

More from Merriam-Webster on profit sharing Encyclopedia article about profit sharing

Comments on profit sharing

What made you want to look up profit sharing? Please tell us where you read or heard it (including the quote, if possible).


Test Your Vocabulary

Star Wars Words Quiz

  • cu jedi training
  • The bounty portion of bounty hunters (such as Boba Fett) comes from a Latin word meaning
Spell It

Can you spell these 10 commonly misspelled words?


Anagram puzzles meet word search.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!