Delta’s profit-sharing incentive plan on Friday will pay out $1.5 billion to employees, including more than $53 million to the airline’s 3,000 employees in Seattle.
Delta Air Lines’ profit-sharing incentive plan on Friday will pay out $1.5 billion to its 80,000 employees, including more than $53 million to the airline’s 3,000 employees in Seattle.
Individual payouts, averaging almost $18,000 locally, amount to more than 21 percent of employees’ 2015 base salary.
The airline has arranged companywide celebrations Friday to mark what it said is the largest payout ever from corporate profit-sharing programs.
Delta reported a record profit of $4.5 billion for 2015.
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In addition to the annual profit-sharing payout, Delta also pays out monthly bonuses throughout the year for meeting corporate operational goals.
In 2015, Delta said employees earned almost $95 million in monthly bonuses, an average of nearly $1,200 per employee.
Next year, however, Delta’s profit-sharing payout should be less. In December, the company made changes to the profit-sharing plan that starting in 2017 will reduce bonuses from highly profitable years.
At the same time, Delta boosted monthly paychecks by raising employee base pay 14.5 percent and increasing the company match to its 401(k) retirement savings plan.
Alaska Airlines, Seattle’s hometown airline that’s locked in a fierce competitive battle with Delta, last month paid out a total of $98 million to its 14,000 employees, of which $56 million went to 7,200 local employees.
The Alaska payout represented about 9 percent of employees’ annual pay, which was in addition to approximately $1,100 in 2015 monthly bonuses for meeting operational targets.