AAG extends profit sharing to Wholly Owned
03-23-2016 | 04:19 PM
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AG Profit Sharing Q&A
March 23rd, 2016
What is the AAG Profit Sharing program?
AAG is establishing a new profit sharing program for employees of AAG companies – including its wholly owned regional carriers. AAG will set aside five percent of every pre-tax dollar earned each year into a profit sharing pool, and that pool will be shared among all participants (excluding management levels 5 and above). Unlike our past profit sharing programs where payouts were based on Envoy financial results, this program will pay out based on AAG’s annual performance.
Is Envoy included in the AAG Profit Sharing Program?
Yes. Our participation in this program demonstrates the value our team brings to AAG and ensures that our people share in the company’s success. American recently communicated that it would be placing an additional five aircraft at Envoy, and we are actively hiring to support this growth. We currently project that we will hire up to 300 Pilots and 400 Flight Attendants this year, as well as mechanics and other ground employees.
Who at Envoy is eligible to receive AAG Profit Sharing?
This new program applies to U.S.-based Envoy and Eagle Aviation Services, Inc. (EASI) employees, as well as international Envoy and Executive Airlines employees, except where prohibited by law. (EGS employees are not eligible to participate in the program.) Employees who are Level 5 and above, who participate in other at-risk compensation programs, will not be included.
Does this program apply to represented employees and groups that do not yet have a contract in place?
Yes. Represented employees will participate in this program provided their unions agree, including Envoy agents, who have voted for union representation but do not yet have a contract in place.
When does the AAG Profit Sharing program begin?
The Profit Sharing program will be effective with 2016 earnings, so it is retroactive to January 2016 financial performance.
Will the payout be uniform among all the people in the pool or will it vary by wage?
It will be a percentage of your salary. The plan calls for 5% of pre-tax earnings (before profit sharing is taken out) to be shared among all eligible participants. The methodology for calculating an individual employee’s distribution will be computed by taking profit sharing as a percentage of all eligible salaries and applying that percentage to an individual employee’s eligible earnings.
Profit sharing calls for 5% of AAG’s pre-tax earnings to be shared among all employees; what determines my specific payout?
AAG will put 5 percent of pre-tax earnings into the pool and then take that dollar figure and divide it by the total eligible earnings of the eligible population. That will determine the payout percentage. If you multiply that payout percentage by your eligible earnings you will get your payout.
What kind of pay is included in the calculation? Is it all pay or just base pay?
Most types of pay are included, including base pay and overtime. Incentive payments, like Performance Bonus Plan payouts, are not included. Further details will be available once the plan document is finalized.
When will the first payout be?
March 2017, provided that AAG has pre-tax earnings in 2016.
Do I have to be employed in 2017 at the time of the payment to receive it? What if I get terminated before the payment date? What if I resign midway through the year? What if I am on LOA during the year or when the profit sharing is supposed to be paid?
Generally, you must be employed on the date of payout to receive it. Employees who retire, or end employment because of disability or death, are also eligible. We will have more details soon.
Is there a minimum threshold before the company starts paying into the profit pool?
No. It begins with the first dollar of profit.
Can I put profit sharing in my 401(k) plan?
Employees will be able to elect to contribute all or any portion of the profit sharing payments to their 401(k) accounts. If employees elect to contribute the profit sharing payments to their 401(k) accounts, then they will receive the same employer contributions on those amounts that employees normally receive in their 401(k) plan. The 401(k) plans will spell out the details regarding making and receiving these contributions and we’ll provide more information once the profit sharing program is finalized.
03-23-2016 | 04:20 PM
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Probably has something to do with all the talk about the"toxic" culture at AA.
03-23-2016 | 04:22 PM
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03-23-2016 | 04:29 PM
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20K Retention bonus for FO's + profit sharing for a few thousand bucks after taxes (assuming another good year). It's starting to add up.
Nice to see a positive trend in news announcements around here for once though. Hasn't been that way for a long time.
Nice to see a positive trend in news announcements around here for once though. Hasn't been that way for a long time.
03-23-2016 | 04:30 PM
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From: CRJ FO
How about simply increasing FO pay and some contractual improvements? I think that would be a real step in the right direction. Bonuses and profit sharing can essentially be turned off at any time.
03-23-2016 | 04:43 PM
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Some FO"s have been banging down $84-$86 an hr with critical coverage.
Add in the retention bonus $10K/1000 hrs yr max, an additional $10 hr.
Both I talked to only flew around 600 yr so make the bonus +$15 hr.
$99 to $102 hr for these guys on CC OT.
Add some more fuzzy math for this new bonus and maybe just maybe you guys might finally have a livable wage.
Better hope mngt doesn't find out.
Add in the retention bonus $10K/1000 hrs yr max, an additional $10 hr.
Both I talked to only flew around 600 yr so make the bonus +$15 hr.
$99 to $102 hr for these guys on CC OT.
Add some more fuzzy math for this new bonus and maybe just maybe you guys might finally have a livable wage.
Better hope mngt doesn't find out.
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