Since the early 1980s, Taiwan's high-tech industries have gained substantial growth, in particular in the information technology (IT) industry. It has been often claimed that one of the major reasons for this success is due to profit sharing and employee stock ownership plans adopted by many Taiwan's high-tech firms during the period of high growth. However, there is a lack of rigorous systematic studies examining their effects on performance, employment and wages that have increasingly drawn attention from academics in Western societies. The aim of this paper is to fill up this research gap. Drawing on data from 115 high-tech firms listed in Taiwan's stock market, the empirical results show that profit sharing and Taiwan-style ESOPs are positively associated with firm performance, employment level as well as total compensation.