Originally Posted by SharpestTool

According to Carl, it's impossible to cost out profit sharing. This only illustrates that Carl hasn't the faintest idea of how to manage a business. Which is fine, he's an airline pilot and doesn't need to know in order to do his job. But, when dispensing wisdom on the topic, his rhetoric should be severely discounted.

Management is very comfortable and equipped to cost profit sharing. Our professional negotiating team is equally comfortable and equipped to cost as well. The idea that PS is a freebie is pure fantasy. That notion is best illustrated in the famous and popular "why should we fund our own pay raise by monetizing PS?"
This is an enduring misconception only slightly less popular than the "cash sitting on the sidelines" allusion in economics.

The heart of the misconception originates from removing risk from the value equation. When one does this, false premises are introduced. Such as profitability will always endure at current levels or higher. This of course leads to the belief that the business cycle has been vanquished. Millions have been slaughtered in an attempt to vanquish the business cycle, which is a central tennent of Marxism.

The fact is that when profitability accelerates higher following a monetization at par, a premium is paid by the holder of the monetized contract. In that sense, one pays for his raise in fixed pay rate. If profitability wanes, your monetization contract generates a windfall. So instead of paying for your raise, your contract itself generates the additional income.

No perpetual motion.