Southwest Airlines (Dallas) today announced it will share $355 million through its Profit Sharing Plan with its Employees for 2014—equaling approximately 9.6 percent of each eligible Employee’s eligible compensation, or the equivalent of five weeks’ pay. This $355 million contribution—nearly $1 million a day—is the largest total dollar amount Southwest has ever allocated to Profit Sharing.
The airline continued:
“Not only is this amount $127 million more than the previous record, set with last year’s contribution of $228 million, but it’s also more than the last two years of ProfitSharing combined—an increase of 56 percent compared with 2013. Since its inception, Southwest Airlines has shared more than $2.8 billion with its Employees through ProfitSharing—and almost $1 billion in the past six years alone.”
“Last year was chock-full of historic milestones and monumental accomplishments, and I’m immensely proud and grateful for our People who worked so hard to make it happen. It was truly a heroic effort,” said Gary Kelly, Chairman, President, and CEO of Southwest Airlines. “Our Employees take ownership in our success, and when the Company does well, our People do well. Because of them, we can realistically aspire to fulfill our Vision of becoming the World’s Most Loved, Most Flown, and Most Profitable Airline.”
When this Profit Sharing contribution is added to the Company’s $289 million in Company match and other amounts contributed to the Southwest and AirTran 401(k) retirement plans, Southwest will have rewarded Employees with a 2014 total retirement benefit of approximately $644 million. In addition to retirement contributions, Southwest Airlines also invested approximately $618 million in its Employees’ other benefits during 2014, including healthcare coverage, and other welfare and wellness programs. In total, that’s nearly $1.3 billion dedicated to the wealth and wellbeing of Southwest Employees in 2014 alone, on top of base salaries.
Southwest was the first in the industry to offer a Profit Sharing Plan. Through the Profit Sharing Plan, Southwest Employees currently own more than four percent of the Company’s outstanding shares.
Copyright Photo: Tony Storck/AirlinersGallery.com. Southwest Airlines Boeing 737-8H4 N8655D (msn 42529) with Aviation partners Boeing Split Scimitar Winglets approaches the runway at Baltimore/Washington.
Southwest Airlines aircraft slide (new livery only):