26
II.—PRIVATE FIRMS AND COMPANIES.
all participated. The average percentage of all employees who
were entitled to participate in profits in these 130 cases was 57'3.
Forms of Bonus Payment.( a )
In about three-fifths of all the schemes under examination the
bonus is paid in cash. In about one-half of the remaining schemes
part of the bonus is paid in cash, and the remainder is either
credited to a thrift fund available to provide provident benefits
for the employee or invested in shares in the employer’s business.
The other commonest type of scheme is that in which the whole
of the bonus is retained by the employer, part for investment in
shares and part on deposit, to be withdrawn only for purposes of
a provident character. In a very small number of schemes the
whole of the bonus is devoted to provident purposes.
With regard to those schemes in which part of the bonus is
retained for investment in shares in the employer’s business and
the other part is either paid out in cash or retained on deposit
with the employer for provident purposes, in several cases the
provisions as to withdrawal are subject to the retention by the
company of the whole of the bonus until a certain amount of
stock has been bought or for a specified period. In a few schemes
the whole of the bonus is always retained by the company
for investment in its shares or stock, one company( b ) making
an additional provision that money may be temporarily withdrawn
in specially approved circumstances up to one-half of the amount
of bonus which may be awaiting investment; while another company^)
provides that in special circumstances (sickness or unemployment)
the trustees will lend an employee an amount equal
to two-thirds the market value of his shares together with any
uninvested bonus standing to his credit.
With regard to the shares obtained by the investment of bonus,
restrictions are imposed by nearly all companies in order that such
shares shall not be transferred without their consent being previously
obtained. In a few cases( a ) the shares are held on behalf
of the employees by trustees, while in others( e ) it is provided that
the shares shall only be held by employees. In the case of most
gas companies (which comprise the majority of cases in this
group) the shares are held in the individual names of employees,
and special provision is made by which employees selling shares
(“) Particulars are given of the form of bonus payment adopted by each
firm in Appendix A. (pp. 95-101) ; see also Summary on p. 102. Similar particulars
are given for abandoned schemes in Appendix B. (pp. 102-113).
( b ) No. 119. (°) No. 106.
( <l ) In the case of No. 128 the shares are held by three Trustees, consisting of
a director, a co-partner, and the secretary of the company. The shares are held
in trust by the directors in the case of No. 65, and by two Trustees, one of
whom is appointed by the company and one by the employees, in the case of
No. 106. The votes on account of shares held under the last-named scheme
are vested in a Committee of five, including two profit-sharing employees, and
are to be exercised era bloc. In the case of No. 84 the shares are held jointly in
the name of the employee and the company’s engineer. In the case of Nos. 91
and 121, shares are issued in the name of employees, but the certificates for
them are retained by Trustees.
CO No, 43 ; and see the special case of No. 49, where shares are held by an
employees’ society (pp. 49-52). Reference should also be made to the rules of
No. 78 (see pp. 46-49). The shares of No. 43 carry no vote and may only be
sold when an employee holds an amount equivalent to a year’s wages.
