Originally Posted by
Surd
With all due respect, the PS impact doesn't work that way. You have to compute your annual pay raise and then add in the PS impact each year. It can't be shown as a single impact on one year's pay increase, and even if you could (you can't), the first year's pay it impacts is 2017, as the 2016 PS payout is based on 2015 profit and the existing construct. Finally, you have to at least understand that the actual pay increase varies depending on how much profit the company makes. Consider what 8/.26/3/3 would look like after compounding:
2016: 8.3%
2017: 11.5%
2018: 14.9%
Here is what the actual pay raise looks like factoring in PS:
2016: 14.5%
2017: 12.5% to 17.9%
2018: 16.3% to 21.5%
I'm probably a bit more bearish than some on future profits and think by 2017 we will be coming back down. If the company only makes ~$3.5B in 2017, then the raise from the TA would be effectively 20%. But even if you are convinced the company is going to be making $6B+ for the next few years, you still fully realize the 14.5% raise in 6 months, and a 16.3% raise in 30 months.
Probably still not enough for most no voters, but at least be honest with what you are voting down.
How about just do it using 2014's PS % of 17%. Probably a good average to use over 4 years.
If you actually just score it out it's a 10.6% raise over 3 years. The rates go 8633, but the total difference between life with and without the TA is 10.6%.
Just use $150/hour 12 year pilot at 90 hours a month and use the current 17% PS and 15% 401K vs the TA's adjusted PS for 2016 and 401K change for 2017 and apply the PS for both in the year that they were earned. Also use all of 2015 so that means with TA2015 you use 150 for the first half, raise the rate 8% for the second half of the year and use the full 17% PS for 2015.
I see a total of $871,884 in value without the TA and $964,447 with, a 10.6% increase.