# Profit share

In accordance with principle 3 of the Co-operative Principles, "Member Economic Participation", we want our members to be rewarded fairly for the work we do. Rather than increasing baseline wages, we have decided to assess surplus each quarter and provide a member bonus if conditions allow.

# Quarterly bonus proposal

On the 28th June 2021 the Pay Circle passed a proposal to establish a regular quarterly profit share for all members of Agile Collective.

A bonus will be paid only when:

  • We have more than 3 months forecast expenditure in cash reserves, to ensure we have enough operating capital.
  • We are forecasting a profit for the next 3 months, to ensure we’re not expected to be heavily drawing on our reserves.
  • A final check of the balance sheet confirms our ability to honour our liabilities.

When these conditions are met the amount of the bonus paid will be calculated as follows:

  • Total bonus pot = Total cash reserves - 3 months forecast expenditure [1]
  • 10% of the total bonus pot is ring fenced to fund good causes.
  • The remaining 90% is split between all members with the amount set in proportion to the number of contracted hours for the last quarter [2].

[1] Includes liabilities like estimates of tax and any debts owed.

[2] Unpaid leave reduces the number of contracted hours.

The Pay Circle will coordinate with the finance circle on a quarterly basis to decide on whether a bonus should be paid, the size of any bonus pot and to communicate this decision to the membership.

The good causes pot is set aside for members to decide how to allocate.

This decision will be reviewed within 12 months, at the end of June 2022 at the latest.