Incentive Plans

Profit-Related Pay (PRP)
Profit-Related Pay (PRP) is an employee compensation plan where the amount paid to an employee is tied to the company's profitability. It aims to align the interests of employees and shareholders by incentivizing employees to work towards increasing company profits.
Profit-Sharing Scheme
A profit-sharing scheme is a program that provides employees with a share in the profits of the company they work for, often by means of share ownership.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.