Originally Posted by
Schwanker
Profit sharing is our dividend for the enormous concessions made over the last decade to make this a viable company. It is our dividend for our sacrifice going forward, only in profitable years of course. It does not factor in to my pay rates. It is here to compensate me for prior sacrifices when times are good. Not for services going forward, but for sacrifices in the past.
Wanna bet? To think this is to think that profit sharing does not entail a cost to management. Profit sharing has nothing to do with past sacrifices or past anything. It is about the future.
Profit sharing is about future compensation, period. It entails risk, period, because the future is unknown. Profit sharing is a hedge. When the risk is that profits will runaway to the upside it is useful. It sucks big time when the risk is a falloff in profitability.
If the bankruptcy had never happened, we wouldn't have negotiated profit sharing. It was a result of a weak hand we were dealt. It is an insurance policy.