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Vanguard Group Employee Dividend Rises 12 Percent

FYI: Top mutual fund provider Vanguard Group raised the value of a profit-sharing dividend paid to employees by 12 percent for 2015 as investors poured in assets, the editor of a newsletter following the Pennsylvania company said on Thursday.
Regards,
Ted
http://wealthmanagement.com/print/industry/vanguard-group-employee-dividend-rises-12-percent-newsletter

Comments

  • That is a very generous % for profit-sharing. The term "profit-sharing" has disappeared in private sector several decades ago. Several companies I worked for paid less than 1-3% as year-end "bonus".
  • edited June 2016
    USAA paid well also from January 26, 2016 article:

    http://www.mysanantonio.com/business/article/San-Antonio-based-USAA-announces-annual-6785116.php

    Excerpt:

    "...Workers will receive a bonus equal to 17 percent of their annual base pay for 2015, snapping a string of six straight years that the award has been 18.4 percent or higher. The bonus was 18.7 percent in 2014."

    Must be all of those commercials during televised sporting events.



  • @TheShadow, Except for the executive officers, it is highly unusual to pay a double digit bonus in my experience.
  • So USAA's bonus dropped by 9.1% (-1.7%/18.7%) vs. Vanguard's profit sharing increase of 12%.
    Y/Y change, not percentage of wages.

    The Reuters article seems to suggest simply that as Vanguard's profits rose, profit sharing (per share) rose commensurately; not that a greater (or even large) percentage of profits were being shared. How does Vanguard have profits anyway?
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