Dive Brief:
- Southwest Airlines late last week announced a record employee profit-share of $620 million for 2015, equivalent to about eight weeks of pay for each eligible employee.
- The profit-sharing, which is added to employee retirement plans, is equal to 15.6% of each employee's eligible compensation. The amount will be funded on April 29 and brings the company's cumulative profit share over the last five years to $1.4 billion.
- The announcement comes on the heels of a record year of profit for Dallas-based Southwest, which saw the company post $2.2 billion in net income in 2015, driven in large part by massive savings on jet fuel costs as oil prices have plunged.
Dive Insight
Gary Kelly, chairman, president and CEO at Southwest, said in a statement that behind every milestone Southwest Airlines has celebrated, "employees are the driving force."
When this profit-sharing contribution is added to the Company's $325 million in company match and other amounts contributed to Southwest retirement plans, Southwest will have rewarded employees with a 2015 total retirement benefit of approximately $945 million. In addition to retirement contributions, Southwest Airlines also invested approximately $672 million in other employee benefits during 2015, including healthcare coverage and other welfare and wellness programs.
In total, the company says, that's more than $1.6 billion dedicated to the wealth and wellbeing of Southwest Employees in 2015 alone, on top of base salaries.
