US vs Co Pay Cuts//top Guys
- Thread starter wench
- Start date
eolesen
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- Joined
- Jul 23, 2003
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700, trying to figure out executive compensation from SEC filings is a lot more challenging than figuring out how many tubes of powder are required in a lav truck to make blue water, or whether or not to open the dump valve with or without the hose firmly locked in position...
For a more complete picture of Neeleman's compensation, take a look here:
http://www.marketwatch.com/tools/quotes/pe...tw&pid=12949520
You'll see that in addition to Neeleman's "paltry" salary, he received a stock award worth about $2.1M last July, when the stock was trading @ $25. At today's trading price, his total shares/options is worth about $133M on paper, which is substantially more than Lakefield will ever see.
At least one Jetblue officer set up a family trust to manage a portion of his options so that they'd be separate from his compensation. I'd be shocked if Neeleman didn't also do so for the tax benefits, given that he has seven kids and a spouse to spread the tax burden amongst...
Lastly, Neeleman doesn't need a huge salary -- by keeping his salary low, he pays taxes only on what's necessary to make ends meet, and can defer the rest for a rainy day.
Smart move if you can pull it off. Unfortunately, that wasn't a viable alternative for Lakefield, since the stock was sliding into oblivion.
For a more complete picture of Neeleman's compensation, take a look here:
http://www.marketwatch.com/tools/quotes/pe...tw&pid=12949520
You'll see that in addition to Neeleman's "paltry" salary, he received a stock award worth about $2.1M last July, when the stock was trading @ $25. At today's trading price, his total shares/options is worth about $133M on paper, which is substantially more than Lakefield will ever see.
At least one Jetblue officer set up a family trust to manage a portion of his options so that they'd be separate from his compensation. I'd be shocked if Neeleman didn't also do so for the tax benefits, given that he has seven kids and a spouse to spread the tax burden amongst...
Lastly, Neeleman doesn't need a huge salary -- by keeping his salary low, he pays taxes only on what's necessary to make ends meet, and can defer the rest for a rainy day.
Smart move if you can pull it off. Unfortunately, that wasn't a viable alternative for Lakefield, since the stock was sliding into oblivion.
