ABSTRACT

The Brazilian provisions are intended to promote social equity and reduce income inequality and exist in a majority of organizations. Australia provides a historical contrast with France, having little profit sharing, no preferred tax treatment until very recently, and even some history of an institutional bias against profit sharing. Despite substantial financial participation in France, profit sharing has not been integrated with worker participation in decision making. The most prevalent form of performance pay in the United States, Australia, Canada, and the United Kingdom was that based on the individual. The emphasis on individual performance pay in the United States has also been linked to the economic performance of the country. Japanese interest in individual forms of performance pay has been partly driven by organizational concerns about the costs and inflexibilities associated with seniority-based wages in the context of an aging work force.