From commercialaviationtoday: (Perhaps the answer!)
Continental Announces New Profit-Sharing Program
Continental Airlines yesterday unveiled to it employees details of its new profit-sharing program. The new profit-sharing program will share 30 percent of the first $250 million of pre-tax income, 25 percent of the next $250 million and 20 percent of amounts over $500 million. The previous profit-sharing program shared 15 percent of the company’s pre-tax income at every level of profitability.
To recognize each work group’s share of the $500 million in annual pay and benefit reductions, half of the profit-sharing pool will be allocated based on the relative share of the reductions of each work group. The other half of the profit-sharing pool will be allocated based on the relative wages of each work group. Once the profit-sharing pool has been allocated among work groups, then co-workers will share in the portion of the profit-sharing pool allocated to their own work group based on relative wages within that work group.
Employees will be able to receive their share of the profits as cash or elect to contribute it to their 401(k) retirement account (subject to applicable limits).
The program has a five-year duration through 2009 and will be implemented upon achieving the $500 million in annual wage and benefit reductions by Feb. 28.
