Competency-based compensation and equitable profit sharing

This paper is about the promotion of industrial peace where labor and management work hand in hand to succeed in their business. The frameworks on competency-based compensation and equitable profit sharing are meant to distribute the wealth generated by businesses equitably and to efficiently manage the business in terms of cost and productivity. In this manner, prosperity will be achieved even in developing countries where gap between the very rich and the very poor is beyond imagination. Profit maximization is given a special meaning in this study. It is no longer just about shareholders´ wealth but that of all stakeholders´ interests.