As noted in other parts of this book, personal motivators such as challenge and involvement have been found to be more motivating than outside motivations, such as financial reward. But in the case of sharing the wealth in successful times, you're really appealing to both kinds of motivations: You're making employees feel involved by including them in the financial rewards.
Profit sharing falls under the category of variable compensation. This means that the amount you'll pay out to each employee varies depending on the performance of the company.
One benefit of having a profit-sharing program is that you can vote to reduce the profit-sharing margin if times get bad as a way of offsetting losses ...