AMR RECOVERY PLAN/ SECTION- 1113, 03' Concessions

[jimntx]

Looks to me like you used it.


"given their latest round of bonusses...yet." Looks like you used the phrase you now disown.


That's how I interpreted his comment.

I was referring to the bonusses we all know they will get in bankruptcy. You know, the topic of the thread. Pay attention to context. I never mentioned the PSP/PUP. I was talking about bonusses awarded, past and future, in bankruptcy--again, the topic of the thread. If you and E want to read between the lines and see something that isn't there, that becomes your problem.

 

[BoeingBoy]

Bonuses awarded in bankruptcy are generally of two flavors - the contractual performance bonuses and retention bonuses. Since the bankruptcy law was changed, retention bonuses are hard to get approved, leaving performance bonuses. I assume that's what the PSP/PUP bonuses are.

Jim

 

[jimntx]

Well, one would think so. However, "exceptional," or even "good," performance was evidently not one of the measures for PSP/PUP payout. As near as I can tell, as long as they continued working at AMR and continued breathing, they got their bonusses. Example: The top executives collected $9 million in bonusses on 4/15/08 on the same day we announced what was up until then (we've since surpassed it) the largest quarterly loss in AMR's history--$324 million for the 1st quarter of 2008.

 

[USA320Pilot]

IF HISTORY IS A LESSON - AMERICAN'S LABOR CUTS WILL BE LARGE

Click here to read the story.

 

[BoeingBoy]

Well, one would think so. However, "exceptional," or even "good," performance was evidently not one of the measures for PSP/PUP payout.

I'll admit up front that the terms "PSP/PUP" are foreign to me. I've assumed that they're AA's executive performace-based compensation components, but that may be wrong. Going through the proxie materials I can't find those terms used anywhere in the compensation section.

Jim

 

[FWAAA]

I'll admit up front that the terms "PSP/PUP" are foreign to me. I've assumed that they're AA's executive performace-based compensation components, but that may be wrong. Going through the proxie materials I can't find those terms used anywhere in the compensation section.

Jim

For one year of payouts (2005 or 2006?) the plan was called the "Performance Unit Plan" (where PUP came from). Subsequently, it was renamed the "Performance Share Plan" (PSP for short).

 

[BoeingBoy]

In other words, stock and stock options based on performance relative to AA's peers (pretty much all other mainline-type carriers).

Jim

 

[eolesen]

I was referring to the bonusses we all know they will get in bankruptcy. You know, the topic of the thread.

Uh, the topic of the thread was a "Get out of S1113 free card" from the 2003 round of concessions. Others decided to hijack it into bonuses....

Pay attention to context. I never mentioned the PSP/PUP. I was talking about bonusses awarded, past and future, in bankruptcy--again, the topic of the thread.

Context? Good luck figuring that out around here.

 

[jimntx]

Uh, the topic of the thread was a "Get out of S1113 free card" from the 2003 round of concessions. Others decided to hijack it into bonuses....
.

And, exactly where in the U.S. legal system does S1113 appear? Oh gee, I believe that is in bankruptcy when a company moves to abrogate a contract. Now, you are nitpicking. I thought you management types that know so much more than us peons were adept at looking at the "big picture."

 

[BoeingBoy]

I would expect that there will be no big bonuses during bankruptcy (AA may keep paying all employees for meeting certain operational metrics, so execs like everyone else would get that). The execs will get their big payday when AA emerges from BK - a nice chunk of "new" stock handed to them on a silver platter.

Jim

 

[FWAAA]

Well, one would think so. However, "exceptional," or even "good," performance was evidently not one of the measures for PSP/PUP payout. As near as I can tell, as long as they continued working at AMR and continued breathing, they got their bonusses. Example: The top executives collected $9 million in bonusses on 4/15/08 on the same day we announced what was up until then (we've since surpassed it) the largest quarterly loss in AMR's history--$324 million for the 1st quarter of 2008.

Do you fact-check anything you post?

Half of the Performance Share plan is based on stock price and the other half is based on various performance measures. From the 2008 AMR Proxy Statement:

The determination of distributions with respect to the other half of the performance share awards initially granted to our named executive officers has been based upon the Compensation Committee's subjective determination of achievement of corporate objectives adopted by the Compensation Committee each year. The corporate objectives are consistent with the objectives of our Turnaround Plan, and for the years 2004 through 2007 were: (a) keeping safety our top priority; (B) raising external capital, maintaining a minimum amount of cash and building a strong balance sheet; (c) meeting our pension funding obligations; (d) continuing to lower our non-fuel costs and implementing measures to conserve fuel; (e) improving customer service and dependability rankings; (f) improving revenues and
business results through employee collaboration and other means; (g) enhancing our image and customer loyalty; (h) continuing to successfully advocate on industry legislative and regulatory issues; (i) focusing on a positive work environment and promoting diversity; (j) promoting employee commitment to the employee standards of conduct and compliance with laws and regulations; (k) meeting financial goals and returning to and sustaining profitability; and (l) any other factors that the Compensation Committee may determine are important or appropriate.

Largest quarterly loss in AMR history? Not even close, old man. For example, the net loss in the first quarter of 2002 was $575 million, far surpassing the 1Q2008 loss you mentioned. There were other larger quarterly losses prior to 1Q2008. Besides, the 2008 payouts were based in part on the relatively favorable stock performance 2005-07 and happened to follow the 2007 profit, AMR's largest annual net profit of the past decade.

 

[jimntx]

You must lead a truly dreary life considering how much time you devote to telling other people they are wrong, and looking up trivia to prove it. My sympathies.

 

[FWAAA]

It's that attitude that made you particularly unsuitable to moderate this website, Ralph.

 

[Veritas]

It's that attitude that made you particularly unsuitable to moderate this website, Ralph.

Ouch!!!

 

[eolesen]

You must lead a truly dreary life considering how much time you devote to telling other people they are wrong, and looking up trivia to prove it. My sympathies.

Facts are now trivia?... OK.