The Fleecing of American Employees

RV4

Veteran
Aug 20, 2002
1,885
80
www.usaviation.com
When is $5 a share really not $5 a share? Answer.. when you got AA and the TWU doing the math.

Just when you thought they couldn''t possibly slap you in the face anymore, here''s another. AA registered 42,680,000 stock option on behalf of its employees at a mere $3.52 a share. AA is now looking to sell them to their employees at $5 a share plus a brokers fee of $25 and 2 cents a share.

The twu''s response, the Intl knows about this.

So, if you want ro redeem your options, you are actually paying AA $645.28 plus brokers fees for the 436 shares each AMT will get according to the SEC document. Meanwhile the TWU is doing a pro-morale/ management accountability campaign. Hello open your eyes please, you gave away $120,000 plus of our money and benefits without a vote, and AA will be taking another $645 for the options. Lets not even talk about next years benefits costs and you think you can campaign your way into making them accountable and that will improve morale.

The facts....
AMR Corporation 2003 Employee Stock Incentive Plan
(Full title of the Plan)


Gary F. Kennedy, Esq.
Senior Vice President and General Counsel
AMR Corporation
4333 Amon Carter Boulevard
Fort Worth, Texas 76155
(Name and address of agent for service)


(817) 963-1234
(Telephone number, including area code, for agent for service)



<Page> 2

CALCULATION OF REGISTRATION FEE

<Table>
<Caption>
<s> <c> <c> <c> <c>
Proposed
Title of Proposed maximum
securities maximum aggregate Amount of
to be Amount to be offering price offering registration
registered registered per unit price fee

Common 42,680,000 $3.52 $150,233,600 $12,153.90
Stock, par (1) (2)
value $ 1.00
per share
</Table>

(1) Consists of shares of Common Stock to be offered
pursuant to the AMR Corporation 2003 Employee
Stock Incentive Plan (the Plan). Such
indeterminate number of additional shares as may
be issuable pursuant to the recapitalization
provisions under the Plan is hereby also
registered.

(2) Computed pursuant to Rule 457(h) solely for the purpose of
determining the registration fee, based upon an assumed
price of $3.52 per share, which was the average of the high
and low prices of AMR Corporation common shares on April
15, 2003, as reported on the New York Stock Exchange.

http://www.sec.gov/Archives/edgar/data/620...19/apr03s8d.txt


TWU''s responses to date....Restore Trust...Rebuild AA..Note..One month after the release of the stock option at $3.52 a share.
http://www.twuatd.org/aarestructure/shareholder_leaflet_1.pdf

And this inspiring comment.....
On the subject of salary cuts, Mr. Arpey must lead the way by example. This can be accomplished by significantly reducing all levels of managements base pay and staffing, (the minimum cut being proportionate; to wage percentage cuts and reduced staffing the unions are making), of course with the same commitment for a minimum of five years. Additionally, cancel all unexercised and unsold stock options (held by all management personnel) and halt any further issuance of stock option awards to senior management. Lastly, place a moratorium on all long term incentive payouts and stop any additional actions by the compensation committee (such as back door bonuses). “Not only are we convinced this move would begin to turn the finances around at American, the side affect would inspire and motivate employeesâ€￾ said Don Videtich President Local 565 in Dallas/Ft. Worth.

Somebody let these people know that morale is gone and their smoke screen BS is not going to change the fact that our money and benefits are gone along with our morale.
 
I''m stunned that someone could be such a whiner and crybaby when he''s part of the group who owns options on 25% of the company and the options are already in the money, less than 2 months later.

Options grants to executives of major corporations are almost never in the money less than two months after the grant - but AA''s rank and file employees'' options are.

Unbelievable.
 
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On 6/7/2003 8:10:07 PM FWAAA wrote:

I'm stunned that someone could be such a whiner and crybaby when he's part of the group who owns options on 25% of the company and the options are already in the money, less than 2 months later.

Options grants to executives of major corporations are almost never in the money less than two months after the grant - but AA's rank and file employees' options are.

Unbelievable.

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I am stunned that someone puts money ahead of ethics and morals.
 
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On 6/7/2003 8:10:07 PM FWAAA wrote:

Options grants to executives of major corporations are almost never in the money less than two months after the grant - but AA''s rank and file employees'' options are.

Unbelievable.

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How often does the executive have to change his/her lifestyle as result of pay/benefit concessions to obtain those options?
 
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On 6/7/2003 7:31:49 PM lownslow wrote:

It amazes me how some people will complain even when management acts responsibly. Is nothing good enough for you?

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I think given recent events, we are entitled to even more suspicion they we are currently exhibiting. In addition, if you read the post, it appears to be more upset with our worthless union on this issue than mangement. A simple neogotiation of the "average price" of the day would have went along way. Of course that would require a union that doesn''t just accept mangements first offer. It is clear that AA wrote the language on more than just the stock options.
 
Here''s an idea -

Companies need to be responsible by recording the cost of stock options when they are awarded. Waiting until later results in some of the massive readjustment of earnings you''ve seen in recent years. Most large corporations are now accounting for these (GM and Ford for 2, I believe). AMR did EXACTLY the same thing. These options were awarded when the employee groups agreed to the cost cuts as part of the package deal. The unions agreed to the $5 a share price - it was then the company''s responsibility to record this immediately on the books. That''s what they did... and now you''re complaining that they practiced responsible accounting methods and that the stock price at the time of the transfer was lower than the option price? Guess what - thats how options work.

Now, if the stock stays under $5, and the employees don''t exercise their options, the $$$ value in that account will flow back into AMR''s general books. If it exceeds $5 and employees strike on their options, it costs AMR the same amount (the full price of the share-$5 - or $4.10 at Friday''s close) regardless of when they register it. By registering it at a low price, they''re doing nothing than setting that stock $$$ off in a separate account so that it is clear to investors what the cost is, and so there won''t be a huge one-time charge to earnings later....

It amazes me how some people will complain even when management acts responsibly. Is nothing good enough for you?
 
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On 6/7/2003 8:17:09 PM RV4 wrote:




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On 6/7/2003 8:10:07 PM FWAAA wrote:

I''m stunned that someone could be such a whiner and crybaby when he''s part of the group who owns options on 25% of the company and the options are already in the money, less than 2 months later.

Options grants to executives of major corporations are almost never in the money less than two months after the grant - but AA''s rank and file employees'' options are.

Unbelievable.

----------------​
I am stunned that someone puts money ahead of ethics and morals.

----------------​
So if at the close of the market on Monday June 9th 2003, I can exercise all my stock options and cash out? Let''s speculate that the purchase was $5 and the sell is $10, what is my profit on 432 shares?
 
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On 6/7/2003 8:10:07 PM FWAAA wrote:

I''m stunned that someone could be such a whiner and crybaby when he''s part of the group who owns options on 25% of the company and the options are already in the money, less than 2 months later.

Options grants to executives of major corporations are almost never in the money less than two months after the grant - but AA''s rank and file employees'' options are.

Unbelievable.

----------------
I am stunned that someone puts money ahead of ethics and morals.


Well Dave I''m truley astound that you would want to bring up ethics and morals with the increduious posting of the past.
 
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On 6/8/2003 9:17:46 AM James T. Kirk wrote:

Well Dave I''m truley astound that you would want to bring up ethics and morals with the increduious posting of the past.

----------------​
James T.,

Instead of attending the next union meeting, you should consider night school. See if they have some classes available in spelling, grammar, and sentence structure.

Hint: There are many Adult Education Services in the Tulsa area.
 
While the TWU has taken your pay and benefits "Without Further Ratification", they have not slowed their political contributions being made from cash extorted from your paycheck:

Screen Capture of $5000.00 Disbursement to "A Lot of People Supporting Tom Daschle, Inc"
daschle.jpg



Notice the contribution is made in 2003 for a Senate Primary in 2004.

For more information on how the TWU is fleecing American Employees review the documents here:
[url="http://herndon1.sdrdc.com/cgi-bin/fecimg/?C00008268"]http://herndon1.sdrdc.com/cgi-bin/fecimg/?C00008268[/URL]
 
On 6/8/2003 9:17:46 AM James T. Kirk wrote:

Well Dave I''m truley astound that you would want to bring up ethics and morals with the increduious posting of the past.

----------------
James T.,

Instead of attending the next union meeting, you should consider night school. See if they have some classes available in spelling, grammar, and sentence structure.

Hint: There are many Adult Education Services in the Tulsa area.



Well Dave if that is the extent of my down falls then I''m years ahead of you!
 
Did you research the link provided?

Anytime your union collects dues and uses those dues for the political process without your knowledge is extortion. In the case of the TWU it is more the members fault because in general the member has no idea hwere or what his political contributions are being used for. As a member of the TWU you do not have a choice where your dues are allocated. The TWU does not even report back to the member on this allocation of their dues. The member should take the responsibility to ensure that the process is understood. There are means to take some control of this situation.
 
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On 6/9/2003 11:03:36 AM lownslow wrote:

yeah, cause that "screen capture" couldn't possibly be faked. Do you have any other information to back up your claims?

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See page 14 of 23 Here:

[url="http://herndon1.sdrdc.com/cgi-bin/fecimg/?F23990969041"]http://herndon1.sdrdc.com/cgi-bin/fecimg/?F23990969041[/URL]

Unless the Federal Election Comission is "faking reports" this appears valid.

While you are at it, take the time to look at the other so-called "faked" expenditures.