OK, I don't mean to beat a dead horse, but I was re-reading this thread today and I cam across this...
The specific intent of the 5% factor in base pay was to allow a force to replace all main units every 20 missions
There is a very simple problem with the math here. This 5% "is paid out for each month of the contract." The shortest missions are 3 months and the longest are 24 months. So it will take well less than 20 missions to replace all main units.
Now, I know there have been discussions subsequent to this post that argue about what battle loss one would expect to see on a mission. These discussion are all irrelevant. First of all, battle loss is already covered by employers under battle loss compensation. Second, the actual tempo of battle will vary enormously by mission type, not to mention the style and skill of whoever is GMing the campaign. Those issues should not try to be meta-gamed. Rather the base percentage should be based on what is reasonable rate of return that would (a) make mercenary work attractive, and (b) make employers want to actually hire mercenaries rather than field their own armies. I implore you, Cray, lower this percentage!