For a Fairer Sharing of Profits between Employees and Shareholders

Public petition n°3963

Petitioner: Xavier Batista

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The purpose of this petition is to propose the introduction of a fairer profit-sharing mechanism within companies established in Luxembourg, based on the net profit generated per employee. The objective is to introduce a progressive and proportionate distribution framework, applicable in situations of high or exceptional profitability, allowing for better recognition of employees' contribution to value creation, while preserving Luxembourg's economic attractiveness, international competitiveness, and the stability of its business environment. This mechanism would be non-automatic and adaptable, taking into account the size, sector of activity, and the actual economic situation of each company, and would not seek to penalise SMEs, start-ups, or low-margin businesses.

Luxembourg is characterised by one of the highest levels of productivity per employee in Europe, particularly in the financial sector, services, holding companies, and other high value-added activities. In a number of companies established in Luxembourg, net profit per employee exceeds EUR50,000 per year, reflecting significant value creation made possible by the direct contribution of employees. However, in many cases, profit distribution remains largely oriented towards shareholders, in the form of dividends or share buybacks, even though both employees and shareholders jointly contribute to corporate performance. This situation may accentuate imbalances in value distribution, in a Luxembourg context marked by a high cost of living, particularly with regard to housing. In order to restore a fairer balance, it is proposed to introduce a progressive profit-sharing mechanism, indexed to net profit per employee. The indicative scale presented below is intended solely as an illustrative example and would, in practice, require further economic analysis, sector-specific assessment, and expert input in order to determine the most appropriate percentages. The proposed indicative scale would be as follows: • EUR0 to EUR10,000 net profit per employee: 5 to 10% redistributed to employees • EUR10,000 to EUR50,000: 15 to 20% • EUR50,000 to EUR100,000: 30% • Above EUR100,000: up to 50%, in situations of exceptional profitability This scale aims to ensure genuine progressivity, protecting companies with moderate profitability while providing for a stronger sharing of value when profit per employee reaches high or exceptional levels. Numerous economic analyses show that a more balanced sharing of profits helps improve employee motivation, strengthen talent retention, reduce turnover, and support productivity, while fostering social cohesion, a key element of Luxembourg's sustainable and attractive economic model. This proposal does not seek to oppose employees and shareholders, but rather to establish a fairer and more proportionate balance between labour and capital, taking into account companies' actual performance and the specific characteristics of the Luxembourg economy.