Originally Posted by
forgot to bid
You're assuming that $1 guaranteed pay is equal to $1 of PS at the beginning of your post but then you are essentially saying a lower year end W2 is better if the guarantee pay is higher.
So which is better:
A) $100k on 1000 credit hours per year plus 20% PS = $120k
B) $110k on 1000 credit hours per year plus 5% PS = $115k
Huh?
That's not trading 1:1 and your math is wrong.
If we trade 10% profit sharing (of 20% PS) for a 10% raise then: $100,000 + $10,000 = $110,000 + $11,000 = $121,000.
$110,000 with 10% profit sharing is $121,000. Which is $1,000 more than just 20% profit sharing on $100,000. So trading profit sharing 1:1 for pay rates you get more.
And the rumor is trading 5.75%. If true I am for it.