Black Magic
Veteran
- Jan 4, 2008
- 937
- 553
Airline execs to reap millions
- Thread starter robbedagain
- Start date
-
- Tags
- pathetic
Dilligas
Veteran
robbedagain said:
You are correct, he most certainly did say that. It was a hidden or not widely known part of Bugsy's contract that only became public after BK2 was filed. This caused an uproar, and Bugsy said he would stay and see it through, and then a few weeks later, before the option to do so would expire, he took the money and ran. I still have his bs letter to employees in my files. (I save way too much sh!t) haha
"David Siegel was just one of the recent MBA-holding hit-and- run artists to become a top US Airways executive. He joined US Airways in March of 2002 at a salary of $750,000. When he filed the company for bankruptcy in August of 2003, he conceded to a 20% pay cut to $600,000 but had already received a signing bonus equal to one full year of his original $750,000 pay. When Siegel resigned in April of 2004, employees were informed that he had received $9 million dollars in salary and stock compensation as severance from the company."
Oh, and 700, your hero Rakesh took much, much more, no paltry 5-10 million for him and the Wolfman...
"This outraged employees, but severance deals for prior US Airways inside executive pillagers were far worse. In February of 2003, employees were told that $35 million had been paid to three top former executives in 2002 — just months before US Airways’ first bankruptcy filing and after the pilots had been robbed of their wages and pensions. ...
Stephen Wolf, former US Airways chairman of the board, received a $15 million lump payment in March 2002. Rakesh Gangwal got a $15 million lump sum after he quit as CEO in November 2001. Lawrence Nagin stole away with $5 million as an already retired executive vice president in March 2002. These payouts were hidden from shareholders and employees. They were deceitfully tucked deep inside a tall stack of US Airways documents filed with the court at the end of 2002, just months after the disbursements. Notice how Gangwal and Wolf were working as a team against US Airways shareholders and unionized employees — Wolf at the top of the board and Gangwal occupying the top two managerial posts."
Please remember also, the stock buyback scam that W&G pulled to finance their own lucrative options at the expense of employees and shareholders... Back when US was profitable and had 2 billion in cash...
"In 2000, Wolf ’s compensation from all sources totaled $11.6 million, including $7.6 million in reimbursement for taxes paid on restricted stock received over the years. Gangwal earned $12.1 million in total compensation, including a $7.2 million reimbursement for tax liabilities. In 1998, Wolf and Gangwal both earned nearly $35 million in salary, bonuses and stock options."
“As the climate in the airline industry darkened starting in 2000 when insiders were selling out throughout the stock market, Wolf and Gangwal needed to prop up the stock price so that their stock options would guarantee them a vast windfall profit. They used US Airways’ $2 billion in cash with a crude but effective scheme. They used the money to buy the stock back to protect their cost-free-to-them option equity instead of funding the employee pension. They did not even save any of the cash as a safety net as even the most modest of financially literate households do."
Source for above quotes: http://optionstrainingcourses.com/author/DocBrown/
*****
Here's a story of Siegel quitting and mentions his pledge to fight on and not take the bonus to leave...
US Airways CEO quits after two-year tenure
By STEVE HUETTEL
Published April 20, 2004
Last month, David Siegel pledged to fight for the airline's future. Resigning now, he can collect millions in severance.
US Airways Group Inc. chief executive David Siegel, who took the airline through a painful bankruptcy reorganization and angered many employees with demands for deeper cost cuts, resigned Monday.
Bruce Lakefield, a US Airways board member and former Lehman Brothers International chief executive, will take over as CEO of the nation's seventh-largest carrier. Lakefield is close to chairman David Bronner, whose Retirement Systems of Alabama owns a controlling stake in US Airways.
In an address last month in which he urged employees to support more wage and benefit cuts, Siegel pledged to fight to save the airline instead of exercising an escape clause that allowed him to leave his job this month. By quitting now, he will collect severance of as much as $5-million under the contract.
http://www.sptimes.com/2004/04/20/Business/US_Airways_CEO_quits_.shtml
robbedagain said:
Morons? Hahahaha...hahahahaha....hahahahaaaaaa!
Bob Owens said:
Don't blame management. Its the govt. which makes these kinds of laws.
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,721
Black Magic;
I don't care, I want it, besides the salary is only a portion of what he gets. These people don't become worth many many millions off just the posted salary, thats probably the smallest portion, our concessions are used to bump up earnings and stock prices, not just at AA but everybody who has a hand in the till including Banks, Airports, oil companies, all sorts of vendors and even the government itself and it works out to a lot more than $242 dollars, more like around $75,000.
AA brought in over $25billion last year with 40,000 less employees. That's over $7billion more than they did in 2003, with 40,000 less employees on payroll. Where did all that money go, because it didn't go to us. yes some went to the oil companies, who unlike us get much much more for their product, some went to leasing companies for planes they didn't fly anymore or facilities they didn't use anymore, that would be like paying the 40,000 employees their full pay to stay at home, some went to banks that in addition to charging interest charge millions in fees to change anything in the terms of the loans that AA took. In some cases AA had to keep more cash on hand than the loan was for, in other words they did not need the loan, its just a means to siphon money through fees and interest to the bank (and to claim that they are bankrupt when they have a Billion in cash) some went to airports, again, unlike us jacked up landing fees over 30% over the same time span where our compensation plummeted.
So before you throw out BS about how little of a difference it would make if Horton didn't get $17 million step back and realize that for every dollar there that you see he stole from us there are many more that you don't see and those dollars added up have made a huge impact on our quality of life.
I don't care, I want it, besides the salary is only a portion of what he gets. These people don't become worth many many millions off just the posted salary, thats probably the smallest portion, our concessions are used to bump up earnings and stock prices, not just at AA but everybody who has a hand in the till including Banks, Airports, oil companies, all sorts of vendors and even the government itself and it works out to a lot more than $242 dollars, more like around $75,000.
AA brought in over $25billion last year with 40,000 less employees. That's over $7billion more than they did in 2003, with 40,000 less employees on payroll. Where did all that money go, because it didn't go to us. yes some went to the oil companies, who unlike us get much much more for their product, some went to leasing companies for planes they didn't fly anymore or facilities they didn't use anymore, that would be like paying the 40,000 employees their full pay to stay at home, some went to banks that in addition to charging interest charge millions in fees to change anything in the terms of the loans that AA took. In some cases AA had to keep more cash on hand than the loan was for, in other words they did not need the loan, its just a means to siphon money through fees and interest to the bank (and to claim that they are bankrupt when they have a Billion in cash) some went to airports, again, unlike us jacked up landing fees over 30% over the same time span where our compensation plummeted.
So before you throw out BS about how little of a difference it would make if Horton didn't get $17 million step back and realize that for every dollar there that you see he stole from us there are many more that you don't see and those dollars added up have made a huge impact on our quality of life.
eolesen
Veteran
- Jul 23, 2003
- 15,988
- 9,428
Maybe its time to go Wildcat? Just because they bought off a few Union leaders and got the language they wanted doesn't mean we should just accept it. We finally saw that they were removed. The majority of people still here voted against these deals. Who, other than Jim Little, said they were willing to buy these people out? You forget that the first vote failed, the only way they got it to pass was by threatening Tulsa and offering an Early out. By then so many were so frustrated they didn't bother to vote, do you expect them to approach their assignments with any more enthusiasm? So just as we are left with a shytty deal they are left with us, who control pretty much every revenue flight and are the only mechanics passengers ever see, and the way we feel about it. Like I said before, not a formula for success.
Along with Bugsy's exit with 4.5 million, I remember we all had to watch a video on ethics. How we all should do what we could to keep the company going by our honesty on the job. A small clip showed an employee taking a couple of flashlight batteries and another employee explaining that it is stealing. I agree it was stealing, but a video on ethics, puleeze, Bugsy had no conscience at all.
Lead by example.
Lead by example.
Piedmontegheny
Member
dash8roa said:
Not to stray to far off-topic, but that is the only thing anybody remembers about that video. The shot of the empty stockroom cabinet that used to be full of batteries and the one employee's home on Christmas morning with about 40 battery-operated toys - all up and running. It was funny and sad at the same time because we see the battery usage spike every December!
WorldTraveler said:
The govt. indirectly does with management and BOD's being "chum-chum" with each other. There is no transparency between the two. In fact, in many cases (including AA), management is part of the BOD!
Laws should be made which make the BOD completely independent of management. We don't see that in the United States.
AANOTOK said:
Well, ok..a little but that comment did deserve a laugh.
eolesen said:
+1!
zflygrl
Advanced
- Oct 7, 2005
- 104
- 11
This is nothing new.....Doug Parker made out very well in his last merger....so what made you think he would not make out in this merger? What you have to ask yourself is......we know he can make the mergers work....but....can he make the transition work? Look at USAirways....the pilots west and east have been in court since about day one of the merger.....
