Originally Posted by
pete2800
It's not profit sharing. It's "Performance based pay."
There are several metrics they use to determine the payout, and the goalposts move every year. For 2017:
- Safety. Do not exceed a goal number of slide deployments or other safety events.
- Loyalty. Sell credit cards.
- Costs. Be below a threshold for CASM.
- Customer Satisfaction. Score high in polls.
- Profit. Meet targets for total profit.
Any misses impact the payout. If everything is maxed out, we get 10%. If anything isn't at the maximum, we get less regardless of profit. In times of record profit we've received less than 10% based on other factors. This plan is inferior to most actual profit sharing plans, and consistently yields lower dollar-amount payouts than our competitors.
The plan is based on a payout of 5% of base pay if the targets are met, with the 10% being based on the maximum 'stretch goals' being met. These targets are set by the BOD - who are also paid by them, so they have a vested interest in seeing them be achievable - and averaging north of 9% over the last few years is pretty darn good once you add all the multipliers up.
This year, admittedly, won't be as great, projected to come in at around 7.5% of pay once all is said and done.
But saying you get 10% and if you miss, everything goes down, is incorrect. You get 5% to start, and it can go up 2X, or down, depending on performance.