Starting next year De Gruyter will be offering its employees a way to profit directly from the company's success. De Gruyter’s management and shareholders have agreed unanimously to introduce an employee profit participation program. Beginning in January 2013, employees will be able to acquire certificates entitling them to a share of the company's profits. The program will run initially for six years, and will allow employees to benefit directly from strong company performance. In the event of losses, liability will be limited proportionally to the amount of capital invested in the participation rights.
This profit sharing program represents the capstone of a comprehensive effort at De Gruyter to acquire the very best talent and secure loyalty to the company over the long term. Many years ago the company introduced a variable compensation system based on company and individual performance; this system is now a highly successful bonus program.
"Highly motivated employees are our most important resource, and they are indispensable for meeting the complex challenges of the academic publishing world," says Sven Fund, CEO of De Gruyter. "I am extremely pleased that the shareholders, management, and works council all share the goal of finding the very best talent and winning their allegiance to the company. The shareholders are forward-looking in their willingness to share a portion of their profits with the company's employees.”
De Gruyter's profit participation system is a highly modern means of offering employees profit participation rights. Each employee can personally decide on how he or she wishes to participate. The returns earned under the program on invested capital are attractive, and considerably higher than market rates. Furthermore, higher than expected company earnings are to be particularly rewarded with higher dividend payments.