robbedagain said:
700 I thought seigel had said that
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
