Check Out the Latest INSIDER Trading Report

[TWU informer]

COMPANY INSIDERS SEARCH

03/29/2006 GERARD J ARPEY
Chief Executive Officer 101,250 AMR Award of Stock
*** Undefined Type ***

03/29/2006 GERARD J ARPEY
Chief Executive Officer 135,000 AMR Exercise of Stock Options
at cost of $3,658,500.00

03/29/2006 DANIEL P GARTON
Officer 84,750 AMR Award of Stock
*** Undefined Type ***

03/29/2006 DANIEL P GARTON
Officer 113,000 AMR Exercise of Stock Options
at cost of $3,062,300.00

03/29/2006 CHARLES D MARLETT
Officer 25,500 AMR Award of Stock
*** Undefined Type ***

03/29/2006 CHARLES D MARLETT
Officer 24,200 AMR Exercise of Stock Options
at cost of $655,820.00

Insider Trading

 

[FWAAA]

OK, I checked it out. Several AA senior execs have recently exercised some options. Yawn. I'm too slow to figure out the point (if there is one).

 

[AMFAMAN]

Add this insider trading report...I bailed out at the open and the stock tanked. What gives?

 

[TWU informer]

OK, I checked it out. Several AA senior execs have recently exercised some options. Yawn. I'm too slow to figure out the point (if there is one).

We all know too well now that unless information is praising AMR management, then you are bored with it.

Others might just wish to be informed about what is happening around them. Information does not have to have a point! People can form their own opinions based on information placed in front of them.

Do you mind?

 

[FWAAA]

Well, now I don't feel so bad about failing to see the significance (or even relevance) of stock option exercise by Arpey, Garton and Marlett given that the OP doesn't comprehend the significance of these recent transactions, either.

 

[eolesen]

Big deal. They had stock as part of their compensation, and they cashed some of it in. That's the whole point of getting stock in a variable compensation agreement. If you want 50-75% of your salary to be in the form of variable compensation, ask your union to negotiate that for you in your next contract.

 

[TWU informer]

See,

I told you folks could garner an opinion by simply putting the information in a place to read.

 

[boxer]

My opinion is that they had to pay their income taxes.

 

[scorpian]

OK, I checked it out. Several AA senior execs have recently exercised some options. Yawn. I'm too slow to figure out the point (if there is one).

Some are excercised and others were awards of stock. I pulled this up last week and showed it around with the same reaction coming from everyone, &%$ #@$% , no yawns though.
Thought it was really cool that horton got a $600,000 sign on bonus on top of 102,000 thousand shares of stock awarded to him. Lets face it folks this thing is all about upper management. Bonuses before bankruptcy and bonuses for coming out of bankruptcy. ITS A WIN WIN

 

[FWAAA]

Thought it was really cool that horton got a $600,000 sign on bonus on top of 102,000 thousand shares of stock awarded to him. Lets face it folks this thing is all about upper management. Bonuses before bankruptcy and bonuses for coming out of bankruptcy. ITS A WIN WIN

Horton did not get an award of 102,000 shares of AMR. He got options, probably based upon the market price on the day of the grant. He will be rewarded (very generously, I might add) for increases in the value of AMR after the date of his employment.

Think about it: 102,000 shares would be worth more than $2 million. AA didn't hand him a $2 million signing bonus.

He negotiated a great deal for himself (as do many corporate executives) but he didn't do that well.

 

[scorpian]

Horton did not get an award of 102,000 shares of AMR. He got options, probably based upon the market price on the day of the grant. He will be rewarded (very generously, I might add) for increases in the value of AMR after the date of his employment.

Think about it: 102,000 shares would be worth more than $2 million. AA didn't hand him a $2 million signing bonus.

He negotiated a great deal for himself (as do many corporate executives) but he didn't do that well.

Believe me I have thought about it. On the insider trading report it lists options excercised and awards of stock. As in Arpey's case he excercised more options than he was awarded. Are these options excercised from a previous award? Are awards different than options? I'm on a learning curve when it comes to executive perks and plan on asking a few questions. You seem to have some knowledge in this arena so maybe you could explain the difference between the two if there is one.

 

[SoftLanding]

The insiders still have a few more shares to sell at some later date:
http://www.secform4.com/insider/showhistory.php?cik=amr

These people have got to eat too...

 

[eolesen]

Are these options excercised from a previous award?

Most likely. Some management employees receive options as part of their compensation, and had pre-2003 options priced between $20 and $24 which have been virtually impossible to cash out since 9/11. I'll admit that I cashed in a few $20+ options while the stock was trading at $27, and I'm sure several other folks did the same.

Are awards different than options? I'm on a learning curve when it comes to executive perks and plan on asking a few questions. You seem to have some knowledge in this arena so maybe you could explain the difference between the two if there is one.

Yes -- awards are stock that is given to the employee with no out of pocket expense by the employee. Options are the right for the employee to purchase shares of stock at a given price.

AA's employees were given options at $5 per share back in 2003, allowing the employee to pocket the difference (minus fees & taxes) between the $5 strike price and the sell price. That's been $15-$22 per share during the past couple weeks.

Stock awards are simply shares of stock given to the employee, and they pocket the entire proceeds (minus fees & taxes) when it is sold.

 

[Bob Owens]

Big deal. They had stock as part of their compensation, and they cashed some of it in. That's the whole point of getting stock in a variable compensation agreement. If you want 50-75% of your salary to be in the form of variable compensation, ask your union to negotiate that for you in your next contract.

Years ago I remember my father commenting about how pissed off the CEO of his company was when senior execs cashed in while the company was struggling through a raid (my father was his chauffeur), he said that it sends the wrong message when they do this. Leadership by example seems to be a thing of the past.

By the way I'll take 50-75% of their salaries in variable compensation any day. In a way we have variable compensation too, one part is a TWU contract that they change midstream and the other is called overtime, and managment expects me to work harder to cut down on it.

 

[TWU informer]

Years ago I remember my father commenting about how pissed off the CEO of his company was when senior execs cashed in while the company was struggling through a raid (my father was his chauffeur), he said that it sends the wrong message when they do this. Leadership by example seems to be a thing of the past.

By the way I'll take 50-75% of their salaries in variable compensation any day. In a way we have variable compensation too, one part is a TWU contract that they change midstream and the other is called overtime, and managment expects me to work harder to cut down on it.

But Bob,

We must allow this so that they will not jump ship and go work somewhere else.

Another variable aspect is what you will be paying every year in medical payroll deduction.

How is the legal fight regarding removal from office going these days?