Profit Sharing Question from an AA guy
08-15-2019, 10:21 PM
#1
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Profit Sharing Question from an AA guy
The company is proposing “Delta’s Profit Sharing” formula for our new contract. We currently share with all employees 5% of profits which equated to 1.4% last year. Even with your formula, if we still spit it with over 100k employees I’m not seeing how we get to anywhere near the numbers you guys have. I’m pretty sure your formula would yield us about 3%. Is your cut of the profit sharing “pilot only” or is it shared with all employees? It seems like I heard that it was separate at one point.
08-16-2019, 01:17 AM
#2
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The company is proposing “Delta’s Profit Sharing” formula for our new contract. We currently share with all employees 5% of profits which equated to 1.4% last year. Even with your formula, if we still spit it with over 100k employees I’m not seeing how we get to anywhere near the numbers you guys have. I’m pretty sure your formula would yield us about 3%. Is your cut of the profit sharing “pilot only” or is it shared with all employees? It seems like I heard that it was separate at one point.
Somebody else will jump in with the exact numbers I am sure.
08-16-2019, 01:33 AM
#3
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That sounds right. What makes it confusing is Delta only reports one PS pool number, but really there are two pools (pilots and everybody else). PS is still 10%/2.5b and 20%/>2.5b for pilots. In addition everyone else shares a pool with the same calculation. So essentially Delta pays 20%/2.5b and 40%/>2.5b in total PS.
At least that's how I understand it.
At least that's how I understand it.
08-16-2019, 05:51 AM
#5
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That sounds right. What makes it confusing is Delta only reports one PS pool number, but really there are two pools (pilots and everybody else). PS is still 10%/2.5b and 20%/>2.5b for pilots. In addition everyone else shares a pool with the same calculation. So essentially Delta pays 20%/2.5b and 40%/>2.5b in total PS.
At least that's how I understand it.
At least that's how I understand it.
The more I think about it....the total PS pool is 10% up to 2.5B and 20% over 2.5B. IIRC the pilot portion works out to be about a third of the total pool.
Denny
Last edited by Denny Crane; 08-16-2019 at 06:18 AM.
08-16-2019, 08:21 AM
#6
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Profit Sharing Question from an AA guy
The company is proposing “Delta’s Profit Sharing” formula for our new contract. We currently share with all employees 5% of profits which equated to 1.4% last year. Even with your formula, if we still spit it with over 100k employees I’m not seeing how we get to anywhere near the numbers you guys have. I’m pretty sure your formula would yield us about 3%. Is your cut of the profit sharing “pilot only” or is it shared with all employees? It seems like I heard that it was separate at one point.
According to a quick, unverified internet search, AA made 36% of the pre-tax profit of DL ($1.9B vs. $5.2B). According to the same search, DL paid out 25% of its pre-tax profit to employees.
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08-16-2019, 09:26 AM
#7
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We made about 2.9 Billon last year. It was a big controversy because we needed to make 3 billion to trigger management bonuses but they said that 2.9 was close enough.
I’m thinking you have to have 2 separate pools. Let’s do some quick math and take a wag at it.
Delta Profit- $5 Billion
10% of $2.5B = $250mill
20% of $2.5B = $500mill
Total = $750 mill
There is no way you could divide that by 80,000 employees and come up with 14% profit sharing.
Delta published that it paid $1.3 Billion in profit sharing so I’m thinking the pilots have a separate program.
I’m thinking you have to have 2 separate pools. Let’s do some quick math and take a wag at it.
Delta Profit- $5 Billion
10% of $2.5B = $250mill
20% of $2.5B = $500mill
Total = $750 mill
There is no way you could divide that by 80,000 employees and come up with 14% profit sharing.
Delta published that it paid $1.3 Billion in profit sharing so I’m thinking the pilots have a separate program.
08-16-2019, 09:29 AM
#8
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That sounds right. What makes it confusing is Delta only reports one PS pool number, but really there are two pools (pilots and everybody else). PS is still 10%/2.5b and 20%/>2.5b for pilots. In addition everyone else shares a pool with the same calculation. So essentially Delta pays 20%/2.5b and 40%/>2.5b in total PS.
At least that's how I understand it.
At least that's how I understand it.
Since the non-cons came back to our plan there is only one pool. Everyone gets the same percentage which is basically the profit sharing pool divided by total eligible wages paid to eligible employees.
08-16-2019, 09:36 AM
#9
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We made about 2.9 Billon last year. It was a big controversy because we needed to make 3 billion to trigger management bonuses but they said that 2.9 was close enough.
I’m thinking you have to have 2 separate pools. Let’s do some quick math and take a wag at it.
Delta Profit- $5 Billion
10% of $2.5B = $250mill
20% of $2.5B = $500mill
Total = $750 mill
There is no way you could divide that by 80,000 employees and come up with 14% profit sharing.
Delta published that it paid $1.3 Billion in profit sharing so I’m thinking the pilots have a separate program.
I’m thinking you have to have 2 separate pools. Let’s do some quick math and take a wag at it.
Delta Profit- $5 Billion
10% of $2.5B = $250mill
20% of $2.5B = $500mill
Total = $750 mill
There is no way you could divide that by 80,000 employees and come up with 14% profit sharing.
Delta published that it paid $1.3 Billion in profit sharing so I’m thinking the pilots have a separate program.
The pool is determined using pretax profit which is a different number that what is generally published with quarterly sec filings.
08-16-2019, 10:02 AM
#10
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Joined APC: Jan 2014
Posts: 233
2018 Pre-Tax Income for the purpose of Profit Sharing was $6.7 Billion. This resulted in $1.3 Billion placed into the profit sharing plan for all eligible employees.
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