's "Partnership Plan," created by Jack Bogle
in 1984 as a perk
and way of sharing company profits with employees, may be inspiring more loyalty than usual this year -- the pay-out for 2005 holdings will be $81.40 per partnership unit, up 13 percent over 2004 dividends of $72.05.
, editor of Independent Adviser
, an unaffiliated newsletter for Vanguard investors, wrote this week that chairman John Brennan
told employees the good news on Tuesday. The plan's annual dividend is set by the company's board of directors, Wiener explained, based on factors like asset growth and fund performance. While rewards for lower-compensated employees are capped at 10 to 30 percent of their regular salaries, the plan's dividends have historically increased at a rate of 16.3 percent per annum.
Stay ahead of the news ... Sign up for our email alerts now