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"We are the protagonists of our stories called life, and there is no limit to how high we can fly."

Type rated on A330, B747-400, B747, B757, B767, B737, B727. International Airline Pilot / Author / Speaker. Dedicated to giving the gift of wings to anyone following their dreams. Supporting Aviation Safety through training, writing, and inspiration.

Thursday, June 18, 2015

Profit Sharing 101

Strategic Planning... 

Many airlines are in the process of contract negotiations. And often profit sharing is on the table for negotiations.

Everyone wants the sure thing. 
But remember... everyone includes management.

When times are tough and profits down, every pilot at one time or another has given back to their airline to keep it afloat by taking profit sharing and stock in exchange for pay.  When times are great, and your airline decides to pull back your profit sharing and give you a raise.... it's time to realize a few points:

  1. Your management team has more information than you on the projections of your airline. 
  2. You management team is not going to give you the better end of the deal. 
  3. If you helped to make your company the success that it is, YOU should keep your profit sharing!
  4. Why do you have to fund your pay raise with a decrease in your profit sharing? You don't. These two events should not be mutually exclusive. 
If you're in the middle of negotiations and your company is rushing a decision before profits for the quarter come out... perhaps you should delay the signing and see what those profits are. You will have more information to make a better decision. 

If your management team is trying to take away 
the rewards for the success you earned...
Say NO! 

Enjoy the Journey!
XO Karlene

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