We measure the effect of profit-sharing incentive schemes on productivity in the banking sector. We use data collected from the payroll records of different (and autonomous) branches of a Québec financial cooperative. Beginning in 1994, some of these branches introduced profit-sharing compensation systems. We estimate a production function for this institution, allowing for the presence of profit-sharing. Our results suggest that branches with profit-sharing had 10% higher productivity than those without. Not all of this increase can be attributed to profit-sharing, however, since we lack information on the presence of other human-resource practices that were introduced into these firms.