AMR Defends Exec Stock Sales

[chucky]

AMR Defends Executives' Stock Sales
Friday June 1, 4:10 pm ET
By David Koenig, AP Business Writer
AMR Defends Executives' Sales of $19 Million in Stock


FORT WORTH, Texas (AP) -- Top executives at AMR Corp., the parent of American Airlines, wasted no time cashing in stock bonuses they received, a rush that analysts said may reveal insiders' worries about prospects for the company in a tough environment.

Within five days of getting the bonuses in April, Chief Executive Gerard Arpey and four other top executives cashed out shares worth about $19 million. In some cases, it was one-third of their AMR stock holdings.

"This was the highest level of (insider) selling in any quarter in about five years at AMR," said Ben Silverman, research director at Insiderscore.com, a Princeton, N.J., firm that tracks insider transactions.



Story

 

[FWAAA]

An excerpt from the story:

Labor leaders were outraged, and officials of the flight attendants' union asked the Securities and Exchange Commission to investigate, although they admitted having no evidence that executives did anything illegal. The SEC wouldn't comment.

Talk about crying wolf while pissing into the wind. B)

 

[A/C FIXER]

I haven't seen anything anywhere saying if the Exec's stock options had a "Strike price" like we had to pay for ours. Anyone know if they had to pay for their options? Or did we BONED on that also.

 

[FWAAA]

I haven't seen anything anywhere saying if the Exec's stock options had a "Strike price" like we had to pay for ours. Anyone know if they had to pay for their options? Or did we BONED on that also.

Options always have some "strike price," or the price you have the option of paying, and yes, the execs' options were similar to yours. The price depended on when they were issued. For instance, Arpey's options exercised on 4/19/07 had a strike price of $8.877 each. Here's a link:

http://www.shareholder.com/aa/EdgarDetail....4&SID=07-00

These can all be found in Form 4 filings by the execs, located in the Investor Relations section of aa.com (that's where I read them). Also available from the SEC at www.sec.gov if you'd rather.

The PUP/PSP stock, on the other hand, was handed to the execs in lieu of cash (what the agreements originally provided), so they didn't have to "buy" that stock.

 

[Nor'Easta]

F.U.R.P.

 

[TIME FOR CHANGE]

AMR Defends Executives' Stock Sales
Friday June 1, 4:10 pm ET
By David Koenig, AP Business Writer
AMR Defends Executives' Sales of $19 Million in Stock
FORT WORTH, Texas (AP) -- Top executives at AMR Corp., the parent of American Airlines, wasted no time cashing in stock bonuses they received, a rush that analysts said may reveal insiders' worries about prospects for the company in a tough environment.

Within five days of getting the bonuses in April, Chief Executive Gerard Arpey and four other top executives cashed out shares worth about $19 million. In some cases, it was one-third of their AMR stock holdings.

"This was the highest level of (insider) selling in any quarter in about five years at AMR," said Ben Silverman, research director at Insiderscore.com, a Princeton, N.J., firm that tracks insider transactions.
Story

They must have the twu contract hammered out and they cashed in before the revolt