Equity Plan/ Profit Sharing

Bob Owens

Sep 9, 2002
Equity Plan

Lets put this right with;
Me Too Clause
System Attrition
Iron Clad Language
Win Win Contract
Industry Leading Contract

Question? How are we supposed to exercise these options with our reduced pay? If we were given a dollar value towards those options from our 17.5% paycut then maybe we could reinvest in the company.

Profit sharing
If the company makes $1billion in profits we will each get $750 in profit sharing. WOW

1000000000-500000000=5000000000 X15%=75000000/100000employees =750

In order for us to get back the $20,000 that we are giving up annually,American would have to have an annual profit of $27 Billion. In other words more than they have made in all the years of their entire existance-COMBINED!!!!

If we ratify our agreement and one of the other groups fails to or if any of the other terms are not met will we still be stuck with the six years of concessions? Is this "IRON CLAD"? I know its such a great deal being given the opportunity to pay $20,000 for the right to have options that we cant afford to exercise that expire in a short period of time and the possibility of getting $750 of profit sharing but what assurances are we given? If AA goes BK, after all the contracts are ratified what then? The contract is still valid and binding for six years but what about the options? What will they be worth?