Four broad approaches to distributing the proceeds of a bonus pool in a profit-sharing plan are listed below:

Each persons share is based on salary

Each person receives an equal share

Each persons share is based on position in the organization (larger payments to people at higher levels)

Each persons share is based on individual performance relative to some target.

Question 1

What are two reasons to support each alternative?

Question 2

What are two reasons to oppose each alternative?