Profit Plan for Leaders and Top Performers Based on Vested MARE Stock

This plan allows you to reward your best people like owners, without giving up ownership.
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Core Incentives
MARE Profit
Goals
Compliance
Culture
Efficiency
Expansion
Growth
Legacy
Profitability
Retention
Stability
Company Size
21-50 Employees
Industries
Construction / Home Improvement
Home Services / Trades
Manufacturing & Production
Commercial Services / Trades
Professional Services
Revenue
$2M - $10M
Inspiration

Overview

This plan provides a dividend-style profit-sharing program for key stakeholders holding MARE Stock. By tying awards directly to company profitability and important performance milestones, it creates strong alignment between employee rewards and company growth, giving stakeholders a true owner-like experience and shared investment in long-term success.

Key Features

Core

Schedule

Annually

Formula

Vested Stock

Distribution

Pro Rata (Salary)
Awards allocate profits to stakeholders based on how much their salary is relative to the entire stakeholder group.
Pro Rata (Vested Stock)
Distributes profits among employees based on the percentage of MARE Stock they’ve vested in the plan. Each person’s share grows as they vest more stock, meaning the longer they stay and contribute, the bigger their payout becomes.
Equally Shared
Awards allocate profits to stakeholders based on how much their salary is relative to the entire stakeholder group.
Assigned Percentages
Awards allocate profits to stakeholders based on how much their salary is relative to the entire stakeholder group.
Conditions

Plan Trigger

Gross Profit
Performance periods should have different targets

Profit Trigger

Net Profit
Performance periods should have different targets

Profit Pool

Share
5
% of
Share
5
% of
profits
Milestones

Milestone 1

Must hit 10% net profit margin for the year (weight 50%)

Milestone 2

Must have a minimum of 60% gross profit margin (weight 50%)

Milestone 3

Payments

Forms

Installments

How it works

This plan runs on an annual schedule, with payouts tied directly to both company profitability and stakeholder performance milestones. The yearly cadence gives everyone a clear target to work toward while ensuring rewards reflect true, sustainable business success. 

Bonuses are calculated in two steps: 

  1. Base calculation: Each stakeholder’s share of annual net profit is determined by their vested MARE Stock award. For example, a 2% award = 2% of net profit, assuming its vested
  2. Milestone adjustments: That payout is then adjusted based on milestone achievement. This ensures rewards go to stakeholders who are driving the right results, while also protecting the company. If growth or business goals are not met, payouts are reduced proportionally or withheld entirely. 

The milestones are weighted to balance profitability, efficiency, and customer outcomes: 

  • Net profit margin > 10% → 50% weight 
  • Gross profit margin > 60% → 50% weight 

If all milestones are met, stakeholders receive their full payout. If only some are met, payouts are scaled according to performance (e.g., hitting net profit but missing gross profit = 50% payout). This makes bonuses fair and directly tied to progress against company goals. 

Payments are made in two installments: 

  • 50% at the end of the fiscal year 
  • 50% twelve months after initial payment 

This payment structure reinforces both immediate recognition and long-term commitment, while ensuring the company only rewards when it is truly moving forward. 

Who is this for?

This plan is a great fit for business owners who want to reward their best people like true partners. Without giving up ownership. It's especially useful for: 

  • Growth focused businesses that want to scale sustainably, ensuring payouts only happen when profit and performance goals are achieved 
  • Owners who want to keep key employees long-term, by giving them a reason to think and act like owners 
  • Managers and top performers (like GMs, sales leaders, or lead techs) whose work directly impacts profits and company performance 
  • Teams that want fairness and transparency, where payouts are tied to clear numbers everyone can see. Profit and performance goals. 
  • Business owners who want accountability, making sure rewards only happen when the company is actually moving forward 

If you want your key employees to feel like they have skin in the game, sharing in the company’s wins, staying loyal for the long haul, and driving growth every day, this plan makes it simple and fair.

FAQs

How is this different from a normal bonus plan?
Traditional bonus plans are usually discretionary and tied to short-term goals. This plan is formula-based and tied directly to company profits and performance milestones, so payouts are fair, transparent, and predictable.
What happens if milestones are not met?
If net or gross profit goals are missed, payouts are reduced or withheld. This ensures bonuses only happen when the company is truly profitable and sustainable.
Who qualifies for this plan?
This plan is designed for leaders and top performers who directly impact profitability, such as general managers, sales leaders, and lead technicians.

Profit Plan for Leaders and Top Performers Based on Vested MARE Stock

I want this template