Tag Archives: profit sharing

Delta to reward its employees with $1.1 billion in profit sharing

Delta Air Lines (Atlanta) today issued this statement:

Delta Air Lines employees today will receive profit sharing as part of the company’s $1.1 billion total payout for 2014 – the largest payment in the company’s history – in recognition for their industry-leading performance.

Total individual payouts will equal more than 16 percent of employees’ eligible 2014 earnings, which equates to an average of nearly two months’ salary. In October 2014, Delta paid a 5 percent advance on profit sharing to employees.

The 2014 payout is a record for the airline industry, and among the highest for any U.S. corporation.

In addition to profit sharing, Delta’s Shared Rewards program pays out monthly bonuses for meeting corporate operational goals throughout the year.

In 2014, Delta employees earned more than $84 million in Shared Rewards as the company achieved history-making operational and financial results. Delta has paid out $2.9 billion to employees in profit sharing and Shared Rewards during the past five years.

Delta employees will be honored for their record-breaking performance today at events held across its global network.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Ex-Northwest Airlines Boeing 757-251 N547US (msn 26494) climbs away from Los Angeles International Airport.

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Southwest Airlines to share $355 million with its employees

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.

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Southwest Airlines to distribute $228 million in profit sharing

Southwest Airlines (Dallas) has announced it will contribute approximately $228 million—the largest total dollar amount ever allocated—directly to Employees through its ProfitSharing Plan this year. The payment is an 88 percent increase over last year’s contribution of $121 million. Southwest was the first in the industry to offer a ProfitSharing Plan, and this is the Company’s 40th consecutive ProfitSharing payment. Through the ProfitSharing Plan, Southwest Employees currently own more than four percent of the Company’s outstanding shares.

Combined with ProfitSharing is the Company’s $269 million match and other amounts contributed to the Southwest and AirTran 401(k) plans. Southwest rewarded its Employees with a 2013 total retirement benefit of nearly $500 million. In addition to retirement contributions, Southwest Airlines also invested approximately $580 million in its Employees’ benefits during 2013, which included healthcare coverage, wellness programs, and other benefits. In total, that’s more than $1 billion dedicated to the wealth and wellbeing of Southwest Employees in 2013 alone, on top of base salaries.

Over four decades, Southwest ProfitSharing contributions have totaled $2.5 billion. In other words:

It’s enough money to buy 500 million mini bottles of founder Herb Kelleher’s drink of choice, Wild Turkey, which would fill 10 Olympic-sized swimming pools.
Or, $2.5 billion would buy 83 billion bags of Southwest peanuts—enough for 10 roundtrips to the moon if you lined them up end-to-end.

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 737-7H4 N481WN (msn 29853) prepares to touch down in Las Vegas.

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Delta to pay $506 million in employee profit sharing

Delta Air Lines (Atlanta) today will pay its employees more than a half-billion dollars in earned profit sharing – the highest payout in company history – in recognition for their industry-leading performance in 2013. Employees’ individual payouts will equal 8.26 percent of their eligible 2013 earnings.

Along with base pay, Delta provides employees with additional compensation elements like profit sharing, designed to allow employees to earn more when the company performs well. Additionally, Delta employees can earn monthly bonuses for meeting corporate operational goals throughout the year, known as Shared Rewards.

In 2013, Delta employees help achieve the corporate financial and operational goals earning $91.7 millionin Shared Rewards, which, combined with profit sharing, totals $598 million in bonus performance pay for the year. Delta has paid out nearly $1.7 billion in profit sharing and Shared Rewards during the past four years.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Brand new Boeing 737-932 ER N812DN (msn 31923) arrives in Los Angeles.

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