Profit Sharing
- Michael Cannon (Unlicensed)
- Ankur Gupta
- Vishakha Pinge
By 2021-22 feedback, we’ll end this Profit Sharing program on March 31, 2023, and integrate it as part of a more comprehensive compensation and benefits program.
Axelerant rewards its people for contributing to our sustainable success through annual profit-sharing.
Axelerant’s first Profit-Sharing Distribution will be by May 31, 2022, for the semi-annual fiscal period October 1, 2021, to March 31, 2022.
What is Profit-Sharing Based On?
Profit-sharing is based on the money left over after we’ve covered business costs like salaries from the cash we’ve been paid for work we’ve done. Formally, we call this money left over as Adjusted Gross Income (AGI). And, we define Adjusted Gross Income as revenue minus expenses before taxes.
To ensure Axelerant’s operations are sustainable, Executive Services and directors have set a semi-annual AGI goal of 20% before profit-sharing is considered.
Axelerant’s Financials
By the 25th of the current month, the prior month’s income and expenses are shared via Axelerant Pulse. E.g., April 25th for March, December 25th for November.
Split Profit Savings
The first 40% of all profits are always saved for tax purposes.
When the Adjusted Gross Income goal is met, after-tax profits are split by these distribution aspects.
17.5% L1-L4 Team Member share pool
17.5% ≥L5 Director+ share pool
5% Axelerant Foundation share pool
10% Shareholder share pool
E.g., Equity holders
25% Business Continuity (Risk)
E.g., Revenue shortfalls, legal concerns, contingency situations
25% Business Investment (Growth)
E.g., Investing in existing or newer product or services opportunities
When the AGI target is not met, there are no share pool gains, and only business continuity and investment are funded.
When AGI is negative, e.g., more expenses than income, all pools are reduced a proportional amount.
See Profit Sharing for current monthly distribution and savings.
Unused Taxes
When tax funds are leftover each fiscal year, they are split as per When the AGI goal is met.
Profit-Sharing Distributions
Every six months, per below, Axelerant will distribute that relevant period’s semi-annual profit pool to applicable team members who have completed at least six months of employment.
by November 30th (April 1st to September 30th)
by May 31st (October 1st to March 31st)
The 60-day post-quarter closure pay date helps ensure positive cash flow with time for funds collection.
Team Member Shares
Each April, Team Member Shares are calculated per a team member’s role level as of March 31st that relates to a Team Member Share Count.
L0-roles, like GET (Graduate Engineer Trainee), and persons of the Agency employee type are not eligible for Team Member Shares.
Share and shares in Axelerant’s context refer to profit-sharing and not the colloquial definition of shares.
Role Level | Share Count |
|---|---|
L1 | 1.00 |
L2 | 2.00 |
L3 | 3.00 |
L4 | 4.00 |
L5 | 5.00 |
L6 | 6.00 |
Share Price, Share Value
The share price is the Team Member share pool divided by the total of team member share counts. Then a team member's share value is the product of the team member’s share count and the share price.
E.g., A profit pool of $3,750 split by 25 shares means a $150 share price. Therefore, the L3 would receive $450 as their share count value.
See DATA Share Counts for your current profit share value.