Originally Posted by
Scoop
Maybe I am reading you wrong or my whole misunderstanding of this issue is incorrect (wouldn't be the first time) but here is how I understand it:
Yes - management can give themselves as large a bonus as they want. But to eliminate PS they would have to totally eliminate profit. Currently any increase in management bonuses would directly reduce the company profit level as an expense.
If this provision remains in the TA the bonus/compensation would not reduce profits but would come out of the pool of employee profit sharing which would have zero effect on profits but just reduce the PS paid to employees.
That is the kicker - it would be essentially "Free" money because unlike any current bonuses it would not affect the bottom line.
If this is incorrect I am sure that I will be politely corrected in .000001 seconds.
Scoop
You are incorrect. The proposed change is to count all management compensation including equity as a business expense. It does not come directly out of the PS pool. Equity would simply be treated like current compensation and bonuses.