Du Pont builds stakeholders

E.I. Du Pont de Nemours and Company Inc's fiber department has developed a program which enables employees to have a stake in whether the firm achieves profit goals. Put into effect in January 1989, 900 of the department's 20,00 workers decided to make part of their compensation dependent on company profits. Aspects of the program include: it is based on the performances achieved by the department's 25 businesses; every February employees are paid on a sliding percentage scale based on whether the department has achieved its goals; and it includes all employes at all levels. Du Pont utilized an extensive education/communication program to educate employees about profit-sharing, and the firm has realized that other companies that are interested in developing such a program need to make sure it reflects organizational values.