AMR Corporation Reports 2007 Net Profit of $504 Million

[The Goose]

Like I said, use it to buy AMR stock - then they can't tell you to shut up!

Already have some, both AMR (common) and symbol AAR (AMR PINES preferred, $.49/share/quarter dividend), both held in a real brokerage, not the joke AMR provides. Don't want any more.

Waiting around for the devils to spin something off and maybe "enhance shareholder value" a tad. Perhaps then I can afford a bone with some meat on it.

I do liked the idea of all buying stock with their sudden windfall, but getting this group to agree on anything is rather akin to herding cats.

 

[WingNaPrayer]

I do liked the idea of all buying stock with their sudden windfall, but getting this group to agree on anything is rather akin to herding cats.

Yes but what a gesture it would be. 80 plus thousand new stockholders and all of them employees, turning around and shoring up the company they not only work for, but a workforce with close to 8 million shares of stock would most definitely have a voice that could be heard - and the buying doesn't have to stop at 800 bucks.

The downside is AMR would have to start renting out cowboy stadium to hold stockholder meetings!

 

[jimntx]

$800 before taxes. Wow! I was an English major; so, can someone do the math for me? Is that anywhere close to an individual share of the $200 million the 896 split? And, was the $200 million used to reduce the net profit and cancel profit sharing?

 

[FWAAA]

$800 before taxes. Wow! I was an English major; so, can someone do the math for me? Is that anywhere close to an individual share of the $200 million the 896 split? And, was the $200 million used to reduce the net profit and cancel profit sharing?

Nope, it's nowhere near the $255 million PUP/PSP stock payouts of 2006-07.

The $95 million or so paid out in 2006 didn't affect profit sharing that year, since the total profit was well below the $500 million floor.

The $160 million or so paid out last year didn't affect profit sharing either, since the profit sharing floor of $500 milion was for AA, not for AMR, and AA's 2007 net profit was still less than $500 million even if you added back the $160 million paid out in 2007 to the lucky execs.

The PUP/PSP payouts didn't cancel potential profit sharing. Even if they hadn't been paid out at all, AA's profits would still have been less than the floor. Union leaders who agreed to that floor should be strung up or sent out of town on a rail. And the two democratic unions did that (the TWU oppressed haven't made any real changes).

 

[TWU informer]

I'm not biting.

Sure I'll take the money, but compared to $100grand plus I have given since 2003 this wont get me slobbering around the feet of management. This is nothing more than a lure or a hook with a minnow to get you to buy into variable compensation.

I'm not biting but thanks for the "Boned-Us" payment anyway.

Union leaders who agreed to that floor should be strung up or sent out of town on a rail. And the two democratic unions did that (the TWU oppressed haven't made any real changes).

One thing I am still pissed about is the manipulation of NMB voter list that prevented us from being able to throw our leaders to the curb. AA Management participated and ran the interference for the TWU and for this I will never forgive or forget.

I'm not biting.

One day deny the Pilots Union Mediation, two days later give them a boned-us check for $800.00.

I'm not biting.

 

[The Goose]

I'm not biting.

Sure I'll take the money, but compared to $100grand plus I have given since 2003 this wont get me slobbering around the feet of management. This is nothing more than a lure or a hook with a minnow to get you to buy into variable compensation.

I'm not biting but thanks for the "Boned-Us" payment anyway.



One thing I am still pissed about is the manipulation of NMB voter list that prevented us from being able to throw our leaders to the curb. AA Management participated and ran the interference for the TWU and for this I will never forgive or forget.

I'm not biting.

One day deny the Pilots Union Mediation, two days later give them a boned-us check for $800.00.

I'm not biting.

I believe you're correct on this one.

The variable compensation may well be a good thing in some companies that take a different view of "the hired help", but not one as mismanaged and indifferent to its employees as AMR/American. As you, I wouldn't trust either the company or the so-called union to do anything but look out for their best interests and not those of the ones footing the bills and actually doing any work to speak of.

 

[ord78]

I'm not biting either
It is more than obvious why this is coming now and imho this is not a gesture it's a manouver
And according to the following post from the Dallas Morning Hearld the top officers will, once again, make out like Bonnie and Clyde..


Officers' rewards
However, the performance stock plan apparently will pay off for the officers and key employees who participate, he said.

The latest awards, to be distributed in April, are based on how the price of AMR shares performed between the start of 2005 and the end of 2007 compared with Continental Airlines Inc., Delta Air Lines Inc., JetBlue Airways Corp., Northwest Airlines Corp. and Southwest Airlines Co.

If AMR shares ranked last, plan participants would get no stock. If they ranked fifth, each participant would get 50 percent of the target number of shares set for that employee; fourth would earn 75 percent of the target; third would mean 100 percent; second would earn 135 percent; and first would mean 175 percent.

However, Delta and Northwest both filed for bankruptcy in 2005, eliminating them, so the worst that executives in the AMR plan can do is 75 percent of their targeted amount.

As it turned out, AMR shares finished second behind Continental shares in price appreciation, meaning AMR personnel will get 135 percent of their targeted amount. For example, a manager whose target was set at 1,000 shares in 2005 will get 1,350 shares when the 2005-07 shares are distributed.

The company doesn't disclose how many people participate in the stock performance plan, but the unions have put the number at nearly 900 a year. That would indicate the average participant was in line to receive close to 5,000 shares valued at more than $60,000.

However, the bulk of the awards go to the top 50 executives, unions have said. And nearly 13 percent of the stock would go to the airline's top five officials, including chief executive Gerard Arpey, Mr. Horton, executive vice presidents Dan Garton and Robert Reding, and senior vice president and general counsel Gary Kennedy.

The top five
Based on the 135 percent bonus, Mr. Arpey would be in line to receive 189,000 shares in April, worth $2.5 million at Tuesday's close. Mr. Horton and Mr. Garton would get 104,760 shares, valued at just under $1.4 million, and Mr. Reding and Mr. Kennedy would get 76,950 shares, valued at just over $1 million.

The AMR board will review the performance of Mr. Arpey and a handful of other top executives to decide how much of their stock award they deserve. Last year, the board set their award at 154 percent of target, rather than the maximum 175 percent.

Mr. Keith estimated that the target amount in the 2005-07 plan is about 3.2 million shares, meaning that the pot at 135 percent will be about 4.3 million shares – worth about $57 million, based on Tuesday's closing price of $13.20 on the New York Stock Exchange.

The 2006 awards, based on AMR's stock performance in 2003-05, totaled over $90 million. The 2007 awards, based on 2004-06 stock prices, were worth more than $160 million on the distribution date.

AMR shares have been sliding in recent months and are down by two-thirds from a year ago. But that doesn't matter in the awards plan – only that AMR stock is doing better than that of its competitors.

 

[The Goose]

The downside is AMR would have to start renting out cowboy stadium to hold stockholder meetings!

I fail to see a downside to that if it would happen, however, the real downside would be the lack of participation, very similar to the attendance at union meetings, at least those of the twu.

 

[TWU informer]

The Top MANAGEMENT of this Corporation must think we are STUPID!

 

[TIME FOR CHANGE]

I'm not biting.

Sure I'll take the money, but compared to $100grand plus I have given since 2003 this wont get me slobbering around the feet of management. This is nothing more than a lure or a hook with a minnow to get you to buy into variable compensation.

I'm not biting but thanks for the "Boned-Us" payment anyway.



One thing I am still pissed about is the manipulation of NMB voter list that prevented us from being able to throw our leaders to the curb. AA Management participated and ran the interference for the TWU and for this I will never forgive or forget.

I'm not biting.

One day deny the Pilots Union Mediation, two days later give them a boned-us check for $800.00.

I'm not biting.

DITTO


I'll take the money but its going to take more than that to make up for the concessions of 2003

At least diapers and formula are free this month

 

[FWAAA]

The Top MANAGEMENT of this Corporation must think we are STUPID!

They don't just think it, they know it.

Not you personally - you're not stupid. Your decisions are the result of complex analysis by which you take your family's best interests into account.

But collectively, AA employees are certifiably stupid. Management whacks your pay and benefits by roughly 25%. Loots the treasury in a big way as soon as red turns to black. Makes fewer employees do more work in each 8 hour day.

And yet, here we are, four and a half years later, and AA still finds that enough people show up for work each day to get it done. And get it done better than many other airlines (think UA this past holiday at ORD or US at PHL, etc.). As I mentioned above, on an individual basis, you and your co-workers are doing what you've decided is best for YOU and your families. Not stupid at all. But collectively? Sheer stupdity. If fuel fell by 75% this year and stayed there for several years, AA still wouldn't make the $8.2 billion necessary to repay the concessions suffered by the represented employee groups. And fuel probably ain't coming down at all, let alone going back to $0.65/gal.

Tens of thousands of employees who are addicted to airline employment and will keep working no matter what management does. That's no recent revelation, either. Management's known it for decades.

 

[WingNaPrayer]

Makes fewer employees do more work in each 8 hour day.

No kidding. I recently saw the job description covering daily duties for a passenger service agent, I damn near soiled myself my gawd it was 11 pages long . .ELEVEN!
No one can do all that in a single shift!


ETA: Just spoke with a friend at AA in DFW and she said her "bonus" showed up in her Epays on JetNet, and that after Uncle Sam took his cash grab she ended up with 616.00 So a bone . . . with a 25% chip taken out of it.

 

[NewHampshire Black Bears]

Yup, A good gesture !



WNP,

"Poo on the Shoe" ????

THAT was friggin' hilarious ...

 

[NewHampshire Black Bears]

I realize this is almost $500 (after taxes - the other $300 is symbolic) we didn't have before today, but the first thing that came to mind re: the reasoning of the execs and the BOD was similar to the old joke about General Custer's last words: "Where did all these f****** Indians come from?"

Again, it's money we didn't have, but I can't shake the feeling of being thrown a bone then being told to shut up.

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POST DELETED BY MODERATOR

Foul language, even if disguised by spelling or symbols is not permitted. Also this post was not pertaining to the topic at hand.

 

[WingNaPrayer]

It just keeps getting better and better.

Another board is reporting that the level 5 passenger service manager in Miami took the employee bonus checks then disappeared into a meeting for four hours, sending two shifts of passenger service employees home empty handed!! Thats like a couple of hundred employees!

Among many other things said about the manager of course, one was that no one was really surprised that she did it. She ranks as the dumbest manager in all of AA (I'm sure a lot of them fit that bill)

I would hate to be that person tomorrow!