Originally Posted by
Bluedriver
Major airline CBA's specify that the profit used in the profit sharing payout is the same numbers they report to shareholders. So using accounting gimmicks to hide profits from employees will also be hiding profits from shareholders. This can work in the short term, but never works in the long term as it would harm share prices, harm investors, and also harm executive compensation, as the bulk of executive comp is based on stock price performance...
If it were so simple, or even reasonably possible, Delta would be doing what you say and avoiding paying gigantic profit sharing checks to the employees.
Talk to ANY CPA. Or take an accounting course. Or for that matter, just look at nonprofit organizations.
Kaiser-Permanente hospitals have $93 BILLION a year in revenue but NEVER make a profit. Yet their CEO pulls in $16 million a year - twice the salary of the Blue Cross CEO. There are PLENTY of ways to hide profit, including amortization schedules and equipment buys that will support share prices while decreasing book profit.
You keep fighting this suggestion. What downside do you see?