(Non Bargaining) Profit sharing is a nice perk. However, the plan’s percentage payout has declined in each of the last two years, despite higher profits. Why is this?
ANSWER: For our non-bargaining team members, profit sharing is just one part of our total compensation package. The NetJets’ Plan is designed to provide a percent of an employee’s base salary, if the Company reaches its basic profit goal for the year. If the Company exceeds its goals, the percent of base salary goes up. For instance the 3% threshold has represented the payout level if NetJets achieves (or exceeds by up 10%) its forecasted level of profitability. Payments in excess of 3% are made when NetJets exceeds its forecasted level of profitability by pre-determined amounts in excess of 10%. Because the degree to which NetJets has exceeded its forecasted profitability levels in the last two years has not been as great as in the first year (on a percentage basis), the plan has paid out at the 5% and 4% levels, respectively. Please note that the plan is subject to change, and all payouts are contingent upon NetJets meeting its annual safety goals. For additional information, please see the Profit Sharing Plan information on JetStream.