American Airlines to Offer Employees Profit-Sharing
The company, the world’s largest airline, had been steadfast in its resolve not to offer its employees profit-sharing although it gave them significant raises following its 2013 merger with US Airways.
The profit-sharing program will pay 5% of pretax profits to non-management employees based on this year’s earnings.
“We are taking this step because we have heard from many of you that a profit-sharing plan is important to our success as a team,” said Doug Parker, the company’s CEO, in a memo to employees. “Although we continue to believe the most effective way to increase compensation is through higher base pay, we recognize there is a team-building component to profit-sharing.”
(Photo: Accura Media Group)