Originally Posted by
notEnuf
Profit sharing is a percentage of profit from the entire corporate entity and as the company grows and becomes more profitable we gain from that corporate growth regardless of the operational growth or decline. This kind of compensation is reserved for only the upper levels of management and the revenue generators that bring additional revenue to the business.
We now have $7 billion in profits we collect on. If the margin remains constant (which the leadership has said is sustainable in every forum they can) then as the company grows we get additional compensation that is not connected to a negotiations or market pilot rates.
notEnuf, this is a good explanation. But there is a way to transfer even more value to the pilot group. The explanation is connected to my previous explanation to Bob. Here's how...
Take the initial portion of Profit Sharing value, the amount paid out at the 10% level, and convert it to a pay raise. That value then compounds every year we get a pay raise, increasing in value. Retain the amount above the 10% payout to participate in your description above. Do the math. This is a more valuable approach.