financial participation

financial participation

the participation of employees in the profits (PROFIT SHARING) or the equity capital (EMPLOYEE SHARE OWNERSHIP PLAN) of their employing organizations. In some countries employees may participate in the financial returns of their company by being granted convertible bonds (CONVERTIBLE LOANS). GAINSHARING may also be seen as a form of financial participation. The objectives of financial participation include the provision of incentives to employees, the encouragement of ORGANIZATIONAL COMMITMENT, and redistribution of income and wealth.

See ENTERPRISE MANAGEMENT INCENTIVE SCHEME, SAVE-AS-YOU-EARN SHARE OPTIONS, SHARE INCENTIVE PLAN.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson