Profit-Sharing Program

10% of Profit is allocated for an annual bonus proportional to salary for employees who have been with the company for at least three years (otherwise, it is prorated)

We have an employee profit-sharing program to align everyone with the company's goal of sustainable growth and profitability. Our goal is to invest back into our employees and reward retention.

We run on profit (see Bootstrap commitment). So, this is our tool to achieve our long-term vision of compensating employees 25% higher than the market rate in overall compensation.

Please consider this program as a true bonus. It is not a guarantee and should not be relied on since year to year profits fluctuate and therefore the amount we’re able to share with employees will also fluctuate or not be paid out at all. This program may adjust over time based on employee feedback as well as its impact on achieving The Global Vision.

Details

10% of net profit will be allocated to our annual profit-sharing pool. Net profit is calculated as revenue minus all costs and expenses incurred within the year. We calculate the bonus percentage per employee based on the total profit-sharing pool and the salary pool, which is the sum of all base salaries in the company as of December 31st. You will receive the full profit-share bonus if you are a 3-year tenured employee, and otherwise, it is prorated to the number of months of full-time employment as of December 31st. Each person’s bonus is then calculated by multiplying the bonus % by their base salary, and then prorated if tenure is less than 3 years.

Example

If in a given year, Profit is $3M and there is a total base salary pool of $10M,

Bonus % per employee = 10% * (Profit) / salary pool = 10% * ($3M) / $10M = 3%

Therefore, each eligible employee will receive a 4% bonus on their base salary, before the tenure adjustment factor.

Examples:

If your base salary is $70k and you have been with GV for 3 years, your bonus would be equal to $70k * 3% = $2100
If your base salary is $70k and you have been with GV for 18 months, your bonus would be equal to $70k * 3% * (18/36) = $1050

Eligibility

To qualify for this program, you must be a full-time employee, or full-time independent contractor, as of the fiscal year-end (December 31st).
Returning employees' tenure is cumulative of their original tenure.
Employees who did not work during the full fiscal year due to leave or any other reason will receive a prorated bonus for their length of employment in that year.
Employees participating in other variable compensation programs may not qualify for this program. Note that the sales team is included in this program.
You forfeit participation in the profit-sharing program if you resign or are terminated before distribution.

Timeline

At the beginning of the fiscal year, we will announce our financial targets and our estimated bonus % if we hit the targets. We will give quarterly updates on our progress and a final update after the books are closed for the previous fiscal year. The target distribution of the bonus is in March.