2011 Executive Bonusses

[jimntx]

Just FYI (bolding and italics, mine)

On April 20, 2011 these PSP shares will be awarded. Using a $10 share price, if a manager chooses to cash-in his or her shares, the following total bonus value will be realized by approximately 950 AA managers. These managers include AA Flight level 8 or higher managers and level 5 or higher managers outside of AA Flight.

PSP Bonus Value @$10 share price (vest April 20, 2011):

All participating managers..................................$14.3 million
Top 5 Officers..................................................$3.1 million
Arpey.............................................................$1.15 million
Horton...........................................................$540,000
Garton...........................................................$540,000
Reding...........................................................$540,000
Kennedy.........................................................$307,000

On May 20, 2011, management will also receive a deferred shares bonus award. This bonus is not affected by competitor rankings.Deferred Share Bonus Value @$10 per share:

All participating managers...................................$9.5 million
Top 5 Officers...................................................$1.7 million

In July 2011, management will be awarded Stock Appreciation Rights (SAR), which are similar to options with varying strike prices.
SARs (Options) Value @$10 per share:

All participating managers..................................$11.3 million
Top 5 Officers..................................................$2.9 million

2011 Total Bonus Value @ $10 share price:

All participating managers..................................$35.1 million
Top 5 Officers..................................................$7.6 million

The 2011 management bonus total value (@$10 share price) of $35.1 million will be in addition to the $344 million awarded AA management during the period 2006-2010. As management bonus plans are granted three years in advance, the bonus share totals are known through vesting year 2013. Using a $10 share price assumption, the total value of AA manager bonuses for the period 2011-2013 could reach an additional $226 million.Source: SEC Filings

 

[eolesen]

Not defending the awards at all, however using $10/share is quite misleading, considering the stock closed at $6.52 yesterday and has been trading below $7 for almost a month.

And with fuel prices & global instability, I suspect $10 is nothing more than a pipe dream...

 

[jimntx]

Then chastise the company. AFAIK, that's the price used in the filings. I just copied it from the email another flight attendant sent to me.

 

[eolesen]

Not chastising anyone, Jim, just pointing out that the awards may only be worth 65% of the advertised value...

And as for "cost neutral contract"... this is stock, not cash. If Laura wants to ask for raises in stock that vests after three years, go for it...

 

[AAmt TCC]

I wonder if the people responsible for this mess are in line for their bonus?

TULE B757 Planning Meeting Continues – From Tulsa Base Fast Facts - Today, Tuesday, March 1, representatives from all departments that are involved in the B757 Heavy C/Cabin Improvement Program will meet off-site in the fourth day of a five-day event. At the gathering, the B757 maintenance organization leadership will bring together all support organizations to build service level agreements in a continuing effort to streamline B757 maintenance production. The yield on AA‘s B757 fleet is at a critical state. According to Aircraft Overhaul and Modification Managing Director Mark Easton, “There are nine aircraft that will „die before check‟ between now and the end of April. That will cost the airline 3.5 million dollars in lost revenue.” This week‘s meeting is a continuation of a series of meetings and events designed to identify and remove roadblocks to production. The off-site meetings are a planning tool to maximize production and keep AA employees in the B757 ―Heavy‖ maintenance business. (TULE B757 organization)


B757 Off-Site – From Tulsa Base Fast Facts - Day five of the B757 off-site production meeting brought together nearly ninety individuals representing TWU and management to evaluate options and begin crafting solutions to AA‘s B757 fleet yield crunch. AA Vice President Base Maintenance Bill Collins and Vice President Engineering Performance and Quality Assurance Bill Cavitt were in attendance and spoke to the gravity of the B757 yield challenge. The presence of such high-ranking M&E officials at the meeting lent a sense of urgency to the proceedings, although some in attendance questioned how and why the problem was allowed to get to this stage. Aircraft Overhaul and Modification Managing Director Mark Easton said, “Management has failed in the past. Now is the time to quit pointing fingers and fix the problems we have control over. This meeting will give us an avenue to be creative in how we find ways to fix those problems.‖ (TULE B757 Organization)


B757 Off-Site Meeting Concludes – From Tulsa Base Fast Facts - The B757 Heavy C/Cabin Improvement Program (HC/CIP) Theoretical Maximum Performance ™ (TMP) event concluded Wednesday, March 2 after five days of intensive examination of all aspects of AA‘s HC/CIP maintenance. The five-day off-site meeting of representatives from multiple departments that are involved in B757 maintenance at AA was focused on removing roadblocks to production with the goal of reducing dock-days for the B757 HC/CIP Checks. Now begins the task of refining and incorporating the many new ideas generated at the offsite into the day-to-day operations at TULE. (TULE B757 organization)

 

[MCI transplant]

<_< ------- And they closed MCIE that did over 50% of the 767 interior mods! ------- Good show guys! You sure showed us now didn't you!!!? 😉

 

[Hopeful]

<_< ------- And they closed MCIE that did over 50% of the 767 interior mods! ------- Good show guys! You sure showed us now didn't you!!!? 😉

MCI, AA had a master plan since the purchase of TWA. They never intended to keep MCIE open as they expanded DFW and TULE. And now there are "plans" for TULE. So however you fell you were treated by AA, TULE will soon know a similar feeling.

Also, as the 787 delieveries begin, the 767s will begin their retirement phase starting with the -200s.

 

[TIME FOR CHANGE]

The yield on AA‘s B757 fleet is at a critical state. According to Aircraft Overhaul and Modification Managing Director Mark Easton, “There are nine aircraft that will „die before check‟ between now and the end of April. That will cost the airline 3.5 million dollars in lost revenue.”

This concessionary contract has cost me 114,000 dollars YTD, a conservative figure, ask me if I give a rats arse about the 3.5 million in lost revenue...




B757 Off-Site – From Tulsa Base Fast Facts - Day five of the B757 off-site production meeting brought together nearly ninety individuals representing TWU and management to evaluate options and begin crafting solutions to AA‘s B757 fleet yield crunch.
And you guys keep helping them out. After all, this company has been nothing but fare in extending your 6 year POS contract to 8 years.
You guys amaze me with your willingness to help this company after the concessions of "03". When are you going to wake up and let management manage. Its guys like you that live the status Quo and put us in the position we are in. keep up the good work you will see a little extra in your paycheck for your dedication.

 

[737823]

Guys remember this is equity compensation but I respect the sensitivity of this matter for employees who are working under concessionary contracts to help AA stave off bankruptcy in 2003. At the same time, their contracts were set by a compensation committee and are expected to be fulfilled to them as negotiated. This is no different than your contract. It would be like AA decided their financial performance didn't live upto analyst expectations and decided to sidestep APA scope clause or reduce APFA negotiated FA staffing levels on aircraft. Would you want AA to evade your CBA and cherry pick pay and benefits as they desire? Bonuses are necessary to retain and attract good talent. While labor costs are hindering AA's ability to compete, I also think part of blame lies in the management team for sitting on their hands for so long. MD-80s are on borrowed time, AA's in-flight product is uncompetitive both domestically and internationally, lack of service to primary international markets (let alone secondary). AA can't even effectively compete in places like Frankfurt (Germany is western Europes largest economy) Boston, or the San Francisco Bay Area and instead of competing AA retreats. AA needs to enter markets like Copenhagen, Hong Kong, Mumbai, Stockholm, and Tel Aviv.


Josh

 

[nbmcg01]

Guys remember this is equity compensation but I respect the sensitivity of this matter for employees who are working under concessionary contracts to help AA stave off bankruptcy in 2003. At the same time, their contracts were set by a compensation committee and are expected to be fulfilled to them as negotiated. This is no different than your contract. It would be like AA decided their financial performance didn't live upto analyst expectations and decided to sidestep APA scope clause or reduce APFA negotiated FA staffing levels on aircraft. Would you want AA to evade your CBA and cherry pick pay and benefits as they desire? Bonuses are necessary to retain and attract good talent. While labor costs are hindering AA's ability to compete, I also think part of blame lies in the management team for sitting on their hands for so long. MD-80s are on borrowed time, AA's in-flight product is uncompetitive both domestically and internationally, lack of service to primary international markets (let alone secondary). AA can't even effectively compete in places like Frankfurt (Germany is western Europes largest economy) Boston, or the San Francisco Bay Area and instead of competing AA retreats. AA needs to enter markets like Copenhagen, Hong Kong, Mumbai, Stockholm, and Tel Aviv.


Josh

I never have understood the concept of paying a bonus for one to "do their job". Retain the best and the brightest, surely you jest?

 

[TIME FOR CHANGE]

At the same time, their contracts were set by a compensation committee and are expected to be fulfilled to them as negotiated. This is no different than your contract.

Our Contracts were not up for renegotiation at the time. They were opened and gutted before the amendable date get your facts straight. These greedy bastards should get nothing just like we get nothing. There is no excuse but i do love what it does for the morale. remember one thing "they made me this way" 😛

 

[Hopeful]

At the same time, their contracts were set by a compensation committee and are expected to be fulfilled to them as negotiated. This is no different than your contract.


Josh

And who sits on this compensation committee?
Other fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other.


And people like you blame unions for a company or government's failure to be profitable and fail to mention the greediest union of them all...IT'S THE GOOD OL' BOYS CLUB OF CEO'S AND BODs...WHOSE MOTTO IS "I'LL WASH YOUR BACK AND YOU WASH MINE."..


Other fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other.
Other fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other corporations who have their compensation determined by another compensation committee which is comprised of more fatcat executives from other.

 

[strikeforce]

Guys remember this is equity compensation but I respect the sensitivity of this matter for employees who are working under concessionary contracts to help AA stave off bankruptcy in 2003. At the same time, their contracts were set by a compensation committee and are expected to be fulfilled to them as negotiated. This is no different than your contract. It would be like AA decided their financial performance didn't live upto analyst expectations and decided to sidestep APA scope clause or reduce APFA negotiated FA staffing levels on aircraft. Would you want AA to evade your CBA and cherry pick pay and benefits as they desire? Bonuses are necessary to retain and attract good talent. While labor costs are hindering AA's ability to compete, I also think part of blame lies in the management team for sitting on their hands for so long. MD-80s are on borrowed time, AA's in-flight product is uncompetitive both domestically and internationally, lack of service to primary international markets (let alone secondary). AA can't even effectively compete in places like Frankfurt (Germany is western Europes largest economy) Boston, or the San Francisco Bay Area and instead of competing AA retreats. AA needs to enter markets like Copenhagen, Hong Kong, Mumbai, Stockholm, and Tel Aviv.


Josh

Josh, you must be in management because you DON'T get it either....just like the fatcats!

Only one way to deal with management bonuses on April 20th.....Do your job Verbatim, and I do mean VERBATIM!!!! The hangars should resemble a parking lot, and hundreds of thousands stranded. Maybe then the fatcats will put out their cigars, stop counting OUR money and come to the table and give us the respect, and the money they stole from us in 2003. Only way my friend. Any other way.....we're just wasting our time!

 

[FWAAA]

Then chastise the company. AFAIK, that's the price used in the filings. I just copied it from the email another flight attendant sent to me.

The $10/sh comes from the website of the ex-TWA FA who is suing AA and the APFA. His website attributes the numbers to "SEC filings." I've looked at AA's filings and can find no mention of $10/share. In fact, I can't find any SEC filings by AA or AMR since last year's Proxy Statement.

Just because you read it on the internet doesn't make it true.

Edit: I found Rock Salomon's orginal page from which the OP was lifted verbatim:

http://wewantourmoneyback.net/newsletters/wwomb_01-24-11.htm

 

[jimntx]

In fact, I can't find any SEC filings by AA or AMR since last year's Proxy Statement.

Oh well, I guess if you can't find it, it doesn't exist as you are incapable of error.