New: SkyWest Airlines Passes Tax Savings On To Employees
Posted by John Kartch on Saturday, January 20th, 2018, 4:19 PM PERMALINK

SkyWest Airlines is sharing the benefits of federal tax reform with its employees.

According to an internal memo the company will increase 401(k) contributions, increase capital expenditures, and increase charitable donations, and will enhance the existing bonus and incentive programs. According to the memo (emphasis mine):

SkyWest’s Financial Performance Rewards and other workgroup bonus programs pay employees on a percentage of the SkyWest Airlines net margin. Historically, these programs have been modeled to neutralize any tax impact (which has been generally negative) to employees. However, under new tax reform, the company will modify those models to pass the benefit on to employees. As a result, employees are expected to enjoy a nearly 17 percent increase in 2018 financial bonuses for every eligible employee.

The full memo is below: