ASA Bonus

[auspac]

3 dollar beers before the 1st inning. Yes, we had a pretty good time. Thanks ASA for the free money!!!
We all earned it. :smash:

You did earn it. Not free money!

 

[Nevets]

We never had it before Skywest....not with ASA or DAL......Skywest believes in actually making the employees part of the success...and it works....

Skywest did unilaterally improve the formula to put more money in our pockets....

In addition, Skywest made the first real improvements in the operation to make these performance numbers possible.....Both the employees and management get kudos.....

What exactly is the formula?

 

[sweptback]

What exactly is the formula?

80% -- ASA's profit margin multiplied by your wages for that quarter
20% -- 4 categories, D-0, completion, A-14, and customer complaints. This paid out a little under $300 I do believe.

 

[Nevets]

80% -- ASA's profit margin multiplied by your wages for that quarter
20% -- 4 categories, D-0, completion, A-14, and customer complaints. This paid out a little under $300 I do believe.

What I'm asking is what is the formula that is used to come up with the number $300. And how is that made to come up with 20% of your bonus?

 

[sweptback]

What I'm asking is what is the formula that is used to come up with the number $300. And how is that made to come up with 20% of your bonus?

It's all black magic voodoo. I don't ask too many questions. Depending on whether we get "good" "better" or "excellent" in each category we get more money. I have no idea how they determine the numbers.

 

[JoeMerchant]

What I'm asking is what is the formula that is used to come up with the number $300. And how is that made to come up with 20% of your bonus?

What is it at ExpressJet?

 

[Nevets]

What is it at ExpressJet?

I'll give you a round number: 0 :laugh:

This is precisely why I ask. I would like to see XJT get something along the lines that ASA/SKW gets in performance bonuses. That is why I'm interested in the actual formula. Do you know how its calculated? Please share it!

 

[JoeMerchant]

Sweptback posted most of it...

The 20% has 4 parameters and 3 tiers of performance to meet.

The 80% has he said is profit margin multiplied by base pay.

Skywest always did this with their employees....ALPA was initially opposed to the idea, but came around later.

 

[Nevets]

Sweptback posted most of it...

The 20% has 4 parameters and 3 tiers of performance to meet.

The 80% has he said is profit margin multiplied by base pay.

Skywest always did this with their employees....ALPA was initially opposed to the idea, but came around later.

The three tiers are "good," "better," and "excellent?" What are the delineation points between the three tiers? And how do these three tiers translate to a dollar amount?

 

[Andy Neill]

The standards for the three levels are variable in relation to the current goals for the quarter. If you meet a criteria, that is worth $25, if you exceed a higher criteria it is $50 and if you exceed by a wider margin, you get $75 for that criteria. One of the four areas has two subparts worth $12.50/$25.00/$37.50 each. The standards are not unachievable but the $300 max is a real challenge.

 

[JoeMerchant]

The three tiers are "good," "better," and "excellent?" What are the delineation points between the three tiers? And how do these three tiers translate to a dollar amount?

D0.....65%, 60%, and 53%.
A14....86%, 82%, and 75%.
Comp..99.4%, 99%, and 98%
Customer Experience 3.85%, 3.81%, and 3.65%.

We hit the top on everything but customer experience....

My quarterly bonus was a little over a thousand bucks....put it in the 401k and got the company match on it.

In addition, Skywest grants us restricted stock every year. That isn't in the contract. It has a 3 year vesting period.

 

[Nevets]

D0.....65%, 60%, and 53%.
A14....86%, 82%, and 75%.
Comp..99.4%, 99%, and 98%
Customer Experience 3.85%, 3.81%, and 3.65%.

We hit the top on everything but customer experience....

My quarterly bonus was a little over a thousand bucks....put it in the 401k and it got the company match on it.

In addition, Skywest grants us restricted stock every year. That isn't in the contract. It has a 3 year vesting period.

And each tier is worth $25 for a possible total of $300, right? I understand how your profit sharing part works. Now, on the stock grants, how exactly are the stocks awarded? I think that longevity has something to do with it, right?

 

[Nevets]

The standards for the three levels are variable in relation to the current goals for the quarter. If you meet a criteria, that is worth $25, if you exceed a higher criteria it is $50 and if you exceed by a wider margin, you get $75 for that criteria. One of the four areas has two subparts worth $12.50/$25.00/$37.50 each. The standards are not unachievable but the $300 max is a real challenge.

Thanks, so each quarter have different benchmarks to achieve the bonus?

 

[Andy Neill]

Thanks, so each quarter have different benchmarks to achieve the bonus?

Yes, the quarterly benchmarks can change. When I was there, $225 was a typical performance bonus.

 

[XPOO]

Nevets,

In case you were wondering, All SkyWest employees with at least one year of service as of June 30, 2008 received:

$125 - Dept. Zero of 67.6%
$25 - Arr. 14 of 81.6%
$125 - Completion of 99.5%
$125 - Bags at 8.4/1000
$25 - PAX Experience of 86.6%

All SkyWest employees with at least two years of service received an additional bonus based on their quarterly earnings multiplied by OO 2Q Profit Margin, which was 4.02%