Douggie Cashes Out

[Career Reserve]

Actually, flynomore makes perfect sense in his/her entire example. That is exactly how the cause and effect works with execs stock distribution, cash out, and Company outstanding share value for the open market and those holding shares.

PITbull,

flynomore does not make perfect sense, he is referring to stock dilution in the open market. Dougie sold 272K shares. The current stock outstanding is 88 Million, the float is 68.5 Million. Kinda like an ant pissing on a forest fire, no disrespect intended.
By the way the short interest has increased from 4.4 Million to 5.8 Million from June to July. Another indicator that the stock is believed to be overvalued. At least by Wall Street.

 

[BoeingBoy]

"Dougie sold 272K shares."

This time. How about when you include the other exec's sales - now we're up to about 865,000 shares - about 1% added to the float.

Then there's this little statistic - 12.5% of authorized shares are set aside for the stock option plan. So at what point would it cease to be an ant pizzing on a forest fire?

Jim

 

[BoeingBoy]

Do the pilots know? Why did they dilute their shares too or is it just the profit sharing toinclude more pilots on the West...is this a new TA transition provision, or did it happen towards the end of BK?

Yes, unless they've been in la-la land.

It's only the profit sharing, not the stock options.

No, it's in the TA that the MEC agreed to just before the judge approved the POR.

Actually, I don't have any heartburn over sharing with the HP pilots (though it would have been nice if Doug had increased the size of the pie if he wanted everyone to share it). I do have to smile when Doug says things like:

"we have also accrued money for our employee profit sharing plan -- $36 million"

as he did in the letter to employees.

Jim

 

[Career Reserve]

"Dougie sold 272K shares."

This time. How about when you include the other exec's sales - now we're up to about 865,000 shares - about 1% added to the float.

Then there's this little statistic - 12.5% of authorized shares are set aside for the stock option plan. So at what point would it cease to be an ant pizzing on a forest fire?

Jim

It depends on how many variables you want to add to this discussion. I believe management was approached by a number of firms looking to issue a secondary offering. At this time LCC stated they were not interested, however at some point they will be. So, how much will that increase the float? I assure you it will have a much greater impact than the stock set aside for the stock option plan. The 12.5% of shares for the stock option plan will not come to market at one time. A secondary offering will.

All of this too will change with time as the Board of Directors authorizes additional corporate shares and additional stock option shares. Etc. Etc. Etc. Etc.

 

[PITbull]

Yes, unless they've been in la-la land.

It's only the profit sharing, not the stock options.

No, it's in the TA that the MEC agreed to just before the judge approved the POR.

Actually, I don't have any heartburn over sharing with the HP pilots (though it would have been nice if Doug had increased the size of the pie if he wanted everyone to share it). I do have to smile when Doug says things like:

"we have also accrued money for our employee profit sharing plan -- $36 million"

as he did in the letter to employees.

Jim

Yea, I hadn't noticed that specifically. He didn't include anybody, the East groups did.

You know, nothing slides by with you. Are you Republican or Democrat, or do you float depending?

And, are you married? B)

Ok...I had a weak moment.... back to the topic...

What is the rationale why the pilots placed that provision for the West before the BK emergence? I know you don't mind, but didn't the pilots find that odd? Did the East receive anything in exchange. You guys are to receive no less than 36% of the pie based on the W-2.

 

[BoeingBoy]

Yes, and I'm too old for you anyway....

 

[PITbull]

It depends on how many variables you want to add to this discussion. I believe management was approached by a number of firms looking to issue a secondary offering. At this time LCC stated they were not interested, however at some point they will be. So, how much will that increase the float? I assure you it will have a much greater impact than the stock set aside for the stock option plan. The 12.5% of shares for the stock option plan will not come to market at one time. A secondary offering will.

All of this too will change with time as the Board of Directors authorizes additional corporate shares and additional stock option shares. Etc. Etc. Etc. Etc.

And just as you point out above, that makes flynomore's example correct. The issue was that it does have an effect on the company. How much of an impact is not what's in question. The fact that it does have an effect IS the point that was made by fly, and by you.

 

[Walmartgreeter]

No, it's in the TA that the MEC agreed to just before the judge approved the POR.


Bingo. And be sure and note the signatures at the bottom of that documnent. You will soon hear more in reference to the ALPA career expectations of those very signers. Best. Greeter

 

[luvn737s]

With LCC's newfound profit, IMHO, they have a moral obligation to begin making the vendors who got squat in BK whole again. While legally, they are off the hook, they should attempt to repay their debts since they obviously can.

The employees agreed to concessions, so it can be argued that they signed away their rights to any new-found money until a new contract is ratified. The track record of HP is to drag negotiations on ad nauseum (even under mediation), so no one should go and spend their raises yet. Cost neutral may have flown under the ATSB restrictions, but it is unreasonable in this environment.

Just when enough trust was being built to broach the subject of profit sharing as a permanent part of compensation (which would allow for worst-case budgeting), they have to go and pull this stunt. It does bolster a case for raises in the eyes of an arbitrator, should it come to that.

 

[Niladelphia]

Sounds like a brag letter to me! This is what the letter really states. "I make alot of money and will pay you nothing. I have a right to take away your pensions and salaries while granted the option to cash in on the cost savings at your expense."


Seems like Dougie is about to leave US. I'm almost certain he has a career move on the table right now.