Originally Posted by
EA CO AS
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.
6 of one, half a dozen of the other. Talking about a 5% target is nothing more than an attempt at managing expectations downward. The potential for 10% is there, and the potential to be paid less than the maximum despite record profits is also there, which makes this program inferior to others.
Question: If PBP is a great deal for the employees, why did management implement it? Because they want to give higher-than-market compensation to their employees? If that's the case, why couldn't they agree to market-based pay and scope for their pilots? Nah, PBP is just as substandard as the rest of our compensation package.
Also, I'm still awaiting a rebuttal from you on my reply to your "pay or scope" thread.