The objective of this work is to understand why the establishment of a profit sharing scheme can become interesting for a start-up or a company. Part 1 consists in a short and general explanation of profit sharing and the benefits this concept can bring to employer and workers. There are numerous schemes in Belgium. The present paper will focus on each of them, classified separately according to the category they belong to. Implementing a scheme requires a clear understanding of the intent and its related expectations. It is essential thus to avoid any effects that would be contrary to the common interest. Moreover, every scheme cannot be related to all types of company. As explained in the body of this report, some schemes give the workers the right to acquire shares in the company. This selling of assets can lead to different problems if the shareholders of the company are not adequately protected. A part of this report is about the implementation of various procedures or measures to protect the shareholders before using a scheme.
It is only recently that each unit or share represents a portion of the value of the company. It is, though, difficult to estimate the exact value of a start-up or new enterprise. As a growing number of profit sharing schemes are based on the capital stock, the valuation of the company must be correct. We will come back to this point on many occasions later in this report.
Dimitri Baonville student at HEC Entrepreneurs 2017-2018