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 ESOP. It's designed to be straightforward, with an emphasis on benefiting from our wins as a team over any system of individual bonuses.
In mid-November each year (or once the financials for the previous financial year have been finalised, whichever is later), Gavin will make a determination as to whether a profit share pool will be allocated. A target of around 25% of net realised profit is the goal.
The profit share poll will be calculated on the date of determination according to the following rules:
All current employees with vested options at the date of determination will be eligible to participate;
Employees will receive a share of the profit pool in proportion to the weighted number of vested options they have relative to the total number of weighted vested options held by all participants:
weighted_options = vested_options ^ 0.3
share = (weighted_options / total_weighted_options) * profit_pool
In the case of a net loss for the year, no distribution is made.
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 This has since been superseded by Disco’s ESOP plan, which gives employees direct ownership in the company (for comparison, under the ESOP approximately 15% of company ownership is set aside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 Disco’s assets such as an application at Gavin’s discretion.