Originally Posted by
PeakEGT
Having a hard time understanding the profit sharing formula, without the cliff. Anyone on here care to describe it in layman’s term as to what will trigger some $.
I understand that first, a profit needs to be made.
10% of JB profits get distributed to employees as profit sharing.
JBLU makes $235mil profit for the year. $23.5mil goes to profit sharing pool. How do they split that $23.5mil? They take the total eligible wages from all employees and divide to find a %.
Eligible wages were $900mil. $23.5m/$900m = 2.6%
Each employee gets 2.6% of their annual eligible wages as profit sharing