Walgreens Employee Profit Sharing
Profit-sharing is an example of a variable pay plan. In profit-sharing, company leadership designates a percentage of annual profits as a designated pool of money to share with employees. Or, it can be a portion of employees such as executives or managers and those above them as situated on an organization chart.
Walgreen Co. is being sued for $300 million by a group of its 401(k) plan participants who allege that the company breached its fiduciary duties by adding to the plan a group of "poorly performing funds" and keeping them for nearly a decade despite their lackluster returns.
While profit-sharing plans that give every employee a contribution do exist — similar to an employer 401(k) match, being able to tailor contribution amounts to specific employees is a differentiator with the profit-sharing plan.
Profit sharing basically puts your money in a locked account, and once you leave the ### company they fee you to death taking the half they put in. Walgreen's scams their employees. Ever since they eliminated the EXA position and made shift leads, ASMTs, etc, the company has really turned to a money hungry ### hole.
Profit-sharing plans are retirement plans built around giving employees a percentage of the year's profits; as of 2010, the maximum annual contribution is 25 percent of an employee's salary or $49,000, whichever is less. Like most retirement plans, the money placed in a profit-sharing plan is tax free until the employee takes it out of the plan.