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Ed Bastian on the importance of financial well-being
Delta CEO Ed Bastian wrote an open letter to business, government and community leaders about the importance of financial well-being and solving the problem of financial insecurity.
As CEO of Delta Air Lines, Ed Bastian leads 100,000 global professionals who are building the world’s leading international airline, driven by a people-focused, customer-focused culture and a spirit of innovation.
This week, Delta Air Lines is doing something extraordinary – paying $1.4 billion in profits directly to our employees, a profit-sharing arrangement for frontline workers unmatched in its scope and impact. Each eligible Delta employee will receive a check that this year totals more than 10% of their annual salary. It’s something we do every year on Valentine’s Day to show our gratitude and love for our people, who serve our customers and ensure their safety and comfort every day.
This year’s payment is no anomaly. Over the past 10 years, Delta has shared more than $1 billion in annual profits with our employees seven times over. In total, since we began our profit sharing program in 2007, the company has paid our employees $11 billion. We are not aware of any large company in our country with a comparable level of success sharing.
Rewarding our people is fundamental to Delta’s values-centered business model. But writing well-deserved checks isn’t always enough. Recent data indicates that more than 50% of Americans do not have access to $1,000 in savings in case of a financial emergency. This creates a tremendous amount of stress and uncertainty for families across our country. While we can’t solve the problem for everyone, we wanted to help Delta employees achieve a level of financial security by increasing their savings and financial well-being.
That’s why last year we launched the Emergency Savings Program, in partnership with Operation HOPE and Fidelity Investments. Participating employees can earn $1,000 from Delta to fund a rainy day account, along with one-on-one coaching and a series of tools from Operation HOPE and Fidelity to improve their financial literacy and well-being.
More than 21,500 Delta employees have participated in the Emergency Savings Program since its launch in January, helping Delta employees strengthen their financial well-being through online instruction, one-on-one coaching and an emergency savings safety net .
The results were remarkable. Since the program began, more than 35,000 Delta employees have started contributing to an emergency savings account. More than 21,000 completed the program, earning a $1,000 net safety contribution from Delta – and 94% of that group kept money in their accounts, allowing them to accrue interest until it’s actually needed for an emergency. Most participating employees are actively augmenting this safety net with their own earnings, saving an average of $74 each paycheck through payroll deduction.
Creating an emergency savings account had a significant impact on participants’ lives. Among employees surveyed, those who reported being able to save for goals other than emergencies more than doubled after completing the program. Additionally, surveys conducted before and after employees completed the program revealed:
- 62% increase in those who feel they have control over their finances.
- 42% increase in the number of employees who are confident in their ability to cover a $1,000 expense with emergency savings.
- 33% increase in those who felt able to save for retirement.
- 41% increase in those who said they can spend less than they earn.
We recently published a white paper with more details on Delta Emergency Savings Program.
At Delta, our #1 job is to take care of our people – our success flows from this simple concept. Sharing profits with our employees, along with providing tools and education to help manage and grow their wealth, is part of our responsibility as a values-driven organization. All of us at Delta, Operation HOPE and Fidelity hope that our efforts can serve as a model for other companies and organizations seeking to better serve all of their stakeholders, including their employees, while helping to solve the serious problem of financial insecurity you face. millions of American families.
© 2024 Delta Air Lines, Inc.