Originally Posted by
Denny Crane
Riddle me this. Our PS didn’t change when theirs was reduced. How can ours be changed when theirs is increased? I understand that they will make more money but isn’t that taken into consideration as a business expense prior to money being put into the PS pool?
And it looks like they have.......at least according to a rep. I don’t know the actual numbers put aside between this year and last year thru the 3 quarters.
Denny
It's sorta difficult to explain on here, but the company doesn't report to investors the amount of profit sharing they have set aside *only* for pilots, they just report the total amount of PS they have set aside (investors don't care who the money is going to).
So basically it's like this (these numbers are just an example):
Total pot (this is the reported number) = pilot's PS + all other employee's PS
2017:
Pilots' PS = 100 million
Other emp = 50 million
Total pot = 150 million
After 2017 the non pilot employees' PS formula changed, requiring the company to set aside more money. In this example we'll say that Delta's pre-tax profit is identical year to year.
2018:
Pilots' PS = 100 million
Other emp = 100 million
Total pot = 200 million
The pot got bigger, but pilots' total amount remained the same. The percentage of your salary could change year to year though based on how many total pilots we have and based on their total compensation.
Did that help?
