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Profit Sharing Structure on Employee Level

General Business Forum - forums.digitalpoint.com
I am working in a company where I proposed a business model to the management and started a subsidiary and they designated me as the CEO for that subsidiary. Management also agreed on 10% profit sharing at the end of the year. I never stopped working for the parent company though, hence doing double job (sort of). I am a technology geek and know nothing about how business and profit sharing works.

So my questions are:

- Where will my monthly salary fall (parent or subsidiary)? Considering the fact that I used to give average 12-14 hour/day?

- Should office renovation and other irrelevant expenses be distributed as operational cost among parent and subsidiary based on head count of the employees? (Subsidiary employees are on very low salaries as compared to the parent company)

- How yearly profit should be distributed? Management is suggesting to reinvest 70% in company from over all profit and from remaining 30%, I will be getting my 10% yearly profit. Is this the right way for profit distribution? Or is it going to increase my profit sharing percentage?

Any type of reference link would be helpful. Thanks

 
Date: Nov 27, 2017   


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