AA execs to get bonus

[FA Mikey]

Top executives at American Airlines are slated to receive another package of stock bonuses in 2010, under a compensation deal approved this week by the airline’s board.

The stock bonus plan, detailed in a filing with the Securities and Exchange Commission Tuesday, is based on how the airline performs from 2007 through 2009. It pays out in 2010 based on several factors, including the performance of the airline’s stock and how it compares to other major carriers. If valued at Monday’s prices, and paid out at the maximum level, the bonus would be worth $4.8 million for Gerard Arpey, American’s chief executive.

AMR hasn't disclosed how many managers are covered by the bonus plan. Union officials have said bonuses paid earlier this year covered about 800 managers.

Executive, payout*

Gerard Arpey, CEO, $4.8 million

Tom Horton, CFO, $2.6 million

Dan Garton, executive vice president, $2.6 million

Gary Kennedy, general counsel, $1.5 million

Bob Reding, senior vice president, $1.5 million

* In company stock, if plan pays out at the maximum level, valued at Tuesday’s closing price.

story here

 

[Hopeful]

Top executives at American Airlines are slated to receive another package of stock bonuses in 2010, under a compensation deal approved this week by the airline’s board.

The stock bonus plan, detailed in a filing with the Securities and Exchange Commission Tuesday, is based on how the airline performs from 2007 through 2009. It pays out in 2010 based on several factors, including the performance of the airline’s stock and how it compares to other major carriers. If valued at Monday’s prices, and paid out at the maximum level, the bonus would be worth $4.8 million for Gerard Arpey, American’s chief executive.

AMR hasn't disclosed how many managers are covered by the bonus plan. Union officials have said bonuses paid earlier this year covered about 800 managers.

Executive, payout*

Gerard Arpey, CEO, $4.8 million

Tom Horton, CFO, $2.6 million

Dan Garton, executive vice president, $2.6 million

Gary Kennedy, general counsel, $1.5 million

Bob Reding, senior vice president, $1.5 million

* In company stock, if plan pays out at the maximum level, valued at Tuesday’s closing price.

story here

All this from a company who has already told the union leadership not to expect anything.

 

[eolesen]

So ask for stock options already...

 

[Hopeful]

So ask for stock options already...

I would like alot more stock options than the 449 I received in exchange for the $120,000 I gave back over the full six year concessionary contract. 3000 or more shares would have been nice at the $5 option price.
But you see, when the company brags that it gave 35,000,000 stock options to its employees, they look so generous until you divide them by 80,000+ people.

With that having been said, I do not want ANY stock options. NONE..NADA>>>ZILCH....ZERO....I never did. I would rather have my salary, vacation, sick time and holiday back. Salary affects my pension.
I have never belittled any executive for his/her compensation UNTIL we got raped. Do you understand? I could have cared less what an executive got because I had nothing taken away. Do you understand? They can negotiate stock options until they excrete them bodily. Do you understand?


The difference here is that they are getting more than they gave up. WE ARE NOT. They are still crying that compared to their industry peers, they are still under PUPed.
You keep saying that our union should negotiate a better deal for us. ARE YOU KIDDING? THE TWU?

My local president also said that we should not expect anything substantial. DO YOU UNDERSTAND?
And you still do not see the greed factor that while these things are being said, the execs are still getting theirs.

You don't see the "LET THEM EAT CAKE" style of management?

 

[flyhigh]

Hopeful,

What you want costs actual money. What they are getting doesn't...Do you understand? Your best best is to negotiate for options.

 

[Hopeful]

Hopeful,

What you want costs actual money. What they are getting doesn't...Do you understand? Your best best is to negotiate for options.

Oh, I suppose the options are just paid for with...????????

Gee, on my 449 options I have to pay back the $2245 because the strike price was $5..

Our options cost money, not the execs,,,seems fair

 

[The Goose]

Oh, I suppose the options are just paid for with...????????

Gee, on my 449 options I have to pay back the $2245 because the strike price was $5..

Our options cost money, not the execs,,,seems fair

Not sure of the cost to the corporate trash (probably zilch), but the company's only cost was the SEC filing fees for the August 2006 S-3 - somewhere in the neighborhood of $200k.

The new shares, when sold, dilute the per-share value and, in effect, pay the bonuses out of the shareholders' pockets.

Ain't that grand?

So ask for stock options already...

Stock options would be fine with me if there protections to the value negotiated (which the execs, no doubt, have, in one way or another) I would not trust the TWU to do so in a competent manner - there would be loopholes large enough to drive an ocean liner (or three) through, just enough to screw the membership.

I feel AMR is doing their best to sell their MRO business, such as it is, in a manner similar to what Boeing (just to the south of the TUL M&E base) did when they sold their business to Spirit. However, the Spirit employees took the variable compensation deal and from the stories I've heard made out quite well, indeed.

Hose the employees and give the management bonuses paid for by the shareholders. AMR doesn't care - they got theirs.

A friend brought up the issue of the 2025 money American took from the City of Tulsa, asking how that would affect a sale. As I recall, one condition was to provide continuing employment for 'x' number of people; I don't remember reading any terms as to the pay of said employees. The city owns everything on the base and in the buildings anyway, so as long as any business, regardless of ownership and employee pay, continues in the facility and provides the minimum contracted employment, there's no beef with the city.

I wonder what the tipping factor will be? This should be interesting.

 

[eolesen]

Oh, I suppose the options are just paid for with...????????

Gee, on my 449 options I have to pay back the $2245 because the strike price was $5..

Our options cost money, not the execs,,,seems fair

As already mentioned, the actual cost to issue new options is limited to the SEC filing fees.

Your options did cost you money, but I don't think you paid taxes on all of the gain. All of the options I was granted under earlier incentive plans had strike prices, and weren't free. Not sure how the PUP was structured, but they're probably reflected as taxable income from the first dollar.

 

[StraaightTaalk]

As already mentioned, the actual cost to issue new options is limited to the SEC filing fees.

Your options did cost you money, but I don't think you paid taxes on all of the gain. All of the options I was granted under earlier incentive plans had strike prices, and weren't free. Not sure how the PUP was structured, but they're probably reflected as taxable income from the first dollar.

We did pay taxes on the gain, out of our own pockets.

 

[TIME FOR CHANGE]

So ask for stock options already...

The twu went to the company allready asking for more stock.

The company told the twu to get Fu#$ed

What else do you suggest Slappy Nuts

 

[eolesen]

TWU asked for options outside the realm of contract negotiations. You're just about to start contract negotiations -- make it a contractual issue.

 

[The Goose]

TWU asked for options outside the realm of contract negotiations. You're just about to start contract negotiations -- make it a contractual issue.

Perhaps I'm a bit paranoid (no, not a miniature parakeet), but there have been a few comments from the company pointing out that the TWU opted for security rather than a possible payout. I'm wondering if this is simply to get the union membership clamoring to have variable compensation written into the upcoming contract to get a piece of what the 'elite' get (money by shareholder rape), and if adopted into the contract, a sale of the American's MRO business or other circumstance (helped along by AMR management to the detriment of workers)negating any possible gain by union members, from which (mis)management walks away with even larger bonuses for duping the TWU (again). I trust AMR's management and the TWU about as far as I can throw a bull by the tail.

Two organizations that are supposedly polar opposites (AMR/TWU) certainly do align quite nicely in what appears to be a common goal, and that goal isn't to the union membership's benefit, and in the long run, not to the company's, either.

 

[TIME FOR CHANGE]

TWU asked for options outside the realm of contract negotiations. You're just about to start contract negotiations -- make it a contractual issue.

But it was all right for the company to gut our contract before the amendable date
Double standard as usual

 

[StraaightTaalk]

Despicable. And they wonder why morale is so bad?

Whether somebody agrees with us; or whether somebody feels that we do not know what we are talking about, it is the way we feel.

I don't know how these managers can consider themselves successful in the "turnaround," when they have simply done it off the backs of labor, and cut personnel and amenities to the bone.

Of course, when things go awry, where are the managers? Either at home, or hiding in their offices. WE have to clean up the mess they created.