<p>So a couple of (ahem) aging business owners have a young, smart employee. They want to add a component to his salary so that he can make more money if the company is profitable. Anybody out there have direct experience with setting this up or employees who have had the same kind of plan. We already have a simple IRA which the company provides matching funds for. I do understand that these monies would be taxable to the employee. He does not want to defer the funds to an IRA. Needs the money now to start a family, house, etc. Things I am not sure about: is profitability tied to overall company profit or just individual projects? If overall company profit does employee get a voice in decisions which affect overall profit? What happens if employee leaves company? How are profits paid for that quarter?</p>