Earlier quoted context omitted.
Only works in smaller companies, when companies grow to big the usual share programms used to achieve this are way to small to mean anything.
Actually in the UK one of the large department store/supermarket chains works this way, and it seems to work pretty well for them. Sure, the reward and input isn't huge, but they look after their staff very well, and they get a share of the profits each year. http://www.johnlewispartnership.co.uk/csr/our-employees/empl...
There's one big chain in the U.S. that's something like that too. Their claim is that they're "employee owned" and from talking to a checker yesterday, employees value that greatly. That said, this checker was carrying on about how Winco employees "retire as millionaires" so I wonder if they're all being sold a bill of goods by management? Apart from that I guess they're paid comparatively well (versus, say, Walmart) and have good health insurance.
http://www.wincofoods.com/about/careers/