I’m a lower level long term employee.
I’m still so upset about losing profit sharing. I think many employees started after they got rid of it but for the rest of us, we know.
The amount of retirement growth Ive lost because of this is so disturbing.
I’ve been trying to add the difference back in myself and the “pay cut” to do this has really taken a toll on me financially.
I’m not sure how many companies have discontinued profit sharing but our future generations don’t have a chance.
The growth this created over time was substantial and is a severe loss.
Trying to make up for this has stolen a few years of raises.
I’m just so disgusted.
12 replies (most recent on top)
Hey ELT. Forgo your bonus this year. Place it back into the pool. Reverse the payout scale to reward your lower band employees more, who are suffering from the junk show decisions you make and double down on.
Ha. Who am I kidding.
The straw that broke my back was when the refused to give raises during Covid, while we were selling through our entire inventory and making record profits.
Our leadership refuses to share the good times with us plebs. Of course they’re never going to profit share too.
They sc--wed up by not laying me off. I’m going to milk the company for everything they stole from me, then I’ll leave.
OP - I know what you're talking about. I remember it too. It went away a while back...not sure it was to fund LTIP...but it was during one of those years when left/right pocket had to balance and we (the lower compensated ones that had profit sharing directly contributed to our retirement accounts) started to see the future of what was to come - we lost.
Don’t worry…soon bonus and stock options will go away and than the company itself will go away.
Literally no other company I know of does profit sharing
Profit sharing was great, but many employees didn’t value as much as higher psp or even the free coffee that normally comes the day after they announce no profit sharing. People didn’t even realised when it started to be zero year after year (with JD as ceo of course)
It substantially adds to your annual contribution to 401k, but several, in my experience younger, employees didn’t even understand it and hence didn’t care for it.
For example if an employee contributed 4k (5% of 80k) to their 401k, sharing could easily mean the company would add 3k (3% sharing) more. But who cares about the future.
the old PSP was Profit Savings Plan (retirement contribution), the new PSP is Profit Sharing Plan (Bonus). There was a purposeful switch to the new style system due to the reasons below. It has nothing to do with not meeting targets, it's just a different vehicle to provide those benefits that is less of a hassle.
Nike's 401k plan is a "safe-harbor" plan and doesn't need to worry about non-discrimination testing. The 401k match essentially replaces the direct payments which is in line with the rest of the industry. https://humaninterest.com/learn/articles/safe-harbor-401k-plans/
OP is referring to profit sharing that was contributed directly into your 401k. Not stock options or PSP, was another perk. Is it gone or have the targets not been hit the last few years to trigger it?
Profit sharing is/was just a tool to pass 401(k) non-discrimination tests. If non-HCE contributions drop profit sharing will come back.
Do you mean stock options? They stopped giving those to anyone below E band quite some time ago. That was a bummer…
The PSP bonus is profit sharing. It's what the "PS" in PSP stands for.