DALLAS (WBAP/KLIF) – NYSE: LUV announced this week that it will share $667 million with its Employees through its Profit Sharing Plan for 2019, which includes a discretionary, incremental profit sharing award for compensation from The Boeing Company related to the 2019 financial impact of the MAX groundings.
The $667 million profit sharing award is equivalent to $1.8 million a day and is more than six weeks’ pay for every eligible Employee. According to Southwest Airlines, the reward equals approximately 12.2 percent of each eligible Employee’s eligible compensation.
On March 13, 2020 most Employees will receive 10 percent of eligible compensation as a contribution to the Profit Sharing Plan, and the remainder—approximately 2.2 percent—in cash. Some Employees will receive the entire profit sharing award as a contribution to their retirement accounts as specified in their collective bargaining agreements. Combined with the $925 million contributed in health and welfare benefits, as well as $542 million contributed to 401(k) plans, Southwest’s total retirement and benefits contribution to Employees in 2019 was $2.1 billion.
“Our Employees delivered outstanding results despite a challenging year, and it’s a pleasure to reward our People for all they contribute to our continued success,” said Gary Kelly, Chairman of the Board and Chief Executive Officer of Southwest Airlines. “We recognize their resolve, persistence, resilience, and devotion to each other, our Customers, and our cause.”
According to Southwest, it has awarded its Employees with a profit sharing award for 46 consecutive years.
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