Originally Posted by
FL370esq
No one said to set PS at zero but it is clearly a variable out of our control. If we turn a profit, great, if not, well...we should still have industry leading pay after these negotiations. Why (and how) do we have to place value on a variable? It should be a disbursement over and above to compensate and motivate for windfalls.
This is a cyclic industry with huge variables. Oil, weather, IT meltdowns, stupid management decisions...any and all of which can affect the profit margin. Hopefully we had our one and only "Black Swan" event on 9/11 but I still believe in the business cycle and it isn't always going to be upward. Not sure when it comes down but it will correct itself. It always does.
hmmm....yes. my point exactly.
PS is an unknown variable, and it is a fools errand for us to engage in determining either its comprehensive present or future value.
PS is the return on the investment we made to acquire an ownership stake in the enterprise. sometimes it will be there....and sometimes not. in the meantime we all have to pay the light bill every month.....so our assessment of equitable compensation should focus and be based on the 'tangible' compensation components of our working agreement.