Southwest announces record $620m profit share for employees

Southwest announced a record employee profit share of $620m for 2015 on Thursday, 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 $1.4b. The announcement comes on the heels of a record year of profits for Southwest, which saw the company post $2.2b in net income in 2015, driven in large part by massive savings on jet fuel costs as oil prices have plunged. It also comes at a time when the company's retirement compensation is being debated as part of ongoing labor negotiations with pilots that have stretched for nearly four years. Southwest was the first in the industry to offer profit sharing with pilots, tying their fortunes to the broader trajectory of the company. In return, the company offered a smaller maximum retirement contribution than competitors while also requiring pilots to make matching contributions.<br/>