communicating company profits

[Monica Barnard]

What, if anything, do companies tell their employees about the profitability of the company as it relates to discretionary profit sharing contributions? New client wants to know what to tell her employees each year.

Thanks,

[david rigby]

In my observation, it's likely the only detail communicated is the size of the PS contribution.

[Monica Barnard]

Thanks, David. That's been my experience as well. Maybe something like "we've had a really good year" if the contribution is larger than in previous years.

[ESOP Guy]

At its most basic level if it is a private company it is their data so they can share it as much as they like.

You go the various ESOP conferences (like there was last week in MN) and you will find plenty of people that claim (with studies published in peer reviewed journals) open book management when combined with an ESOP improve profitability.

Not sure if anyone has ever done research into non-employee owned companies and open book management.

Their data their choice in the end.