As a way to ensure that everyone can share in Disco's success, we offer a simple profit sharing scheme in addition to the Disco Labs ESOP. It's designed to be straightforward, with an emphasis on benefiting from our wins as a team over any system of individual bonuses.

Implementation

In mid-January each year, an allocation of 20% of Disco's net realised profit for the previous calendar year is set aside into share pool.

Points are allocated to all participating employees according to the schedule below. Employees receive a share of the pool based on their percentage of the overall point allocation — for example, an employee with 5 points where all participating employees have a total of 50 points will receive 10% of the pool.

In the case of a net loss for the year, no distribution is made.

Schedule

• All participants start with 2 points.
• Add 1 point for each 6 month FTE period that has been completed at the time of allocation.
• Add 2 points for a leadership or expert role (Team Lead, Subject Matter Expert, Technical Director).
• Add 2 points for having a direct area of responsibility in the business (Business Director, Technical Director, Project Manager, Product Manager).

Sale Events

In the original formulation of the profit share program, a sale of the company would result in a similar profit share approach, but with a pool equal to 10% of the sale value. This has since been superseded by Disco’s ESOP plan, which gives employees direct ownership in the company (for comparison, under the ESOP approximately 15% of company ownership is set aside for employees).

This 10% pool approach still applies in the event of the sale of one of Disco’s products such as an application.

Fine Print

• All current Disco employees at the time of allocation are eligible to participate.
• The profit share will be distributed as a single lump sum shortly after the allocation is publicised. There may be individual tax implications here - Disco will seek advice on this, employees are encouraged to do the same.
• The profit sharing scheme does not constitute a contractual guarantee between Disco and participants. It should be considered an additional benefit rather than a core part of a compensation package.