PUP Scorecard 2008

[The Goose]

Goose: what you're proposing would significantly dilute the value of the stock, making your take much less. It's an interesting idea, but I don't think it's the way to go. Current shareholders would revolt.

Aw hell - I know all that, but it's a nice thought.

If one's going to wish, one should wish big - right?

 

[AAStew]

With the uproar this weekend about the AIG execs taking bonus, I think it should be interesting the effect on our execs decisions....

 

[BigBangTheory]

With the uproar this weekend about the AIG execs taking bonus, I think it should be interesting the effect on our execs decisions....

AA has always been a follower, not as leader. So, they will do what they always do...take the PUP!

 

[The Goose]

With the uproar this weekend about the AIG execs taking bonus, I think it should be interesting the effect on our execs decisions....

Not sure how long you've been with the company but I assure you those in Centreport don't give a Tinker's damn about appearances, what we think, or public perception when it comes to money.

 

[AAStew]

I have been with the company 18 years. They say hope springs eternal....

 

[FrequentFlierCA]

Aw hell - I know all that, but it's a nice thought.

If one's going to wish, one should wish big - right?

It is! Reminds me of that classic Texas expression: go big or go home.

 

[AC AA LA FA]

I just heard today that the PUP/PSP Bonus amount this year will be $164 million split amongst the top 1000 managers...
and they all will be taking said bonus.....

anyone else confirm...?
ac

 

[MCI transplant]

<_< ---- After the AIG debacle, would you believe they'd still have the balls to go through with this!!? ---Yep! "Greed is good!" And still at the helm of Cooperate America!!! :angry: ---- God help us!!!

 

[AC AA LA FA]

I am curious to sort fact from fiction and see if the above figures are correct.


Any amount is an absurd amount of bonus when AA is performing the way it is and the rank and file are continuing to do without.

Time will tell the story of just how far labor can and will be pushed, and just how much these greedy, inept, managers will add to their personal bank accounts.

The spin will be priceless ...

I now truly can see no means other than a strike to drive home the fact that we are not alright with these decissions and this management. We deserve better for our airline and ourselves.

 

[AC AA LA FA]

Ft Worth Star Telegram is reporting AMR PUP/PSP bonus value this year at $8 million following $160 million last year...

 

[FWAAA]

Ft Worth Star Telegram is reporting AMR PUP/PSP bonus value this year at $8 million following $160 million last year...

No, the PSP payout last year was about $40 million; 2007 PSP payouts were about $160 million and 2006 PUP payouts were about $95 million:

Overall, between 800 and 1,000 top management employees will receive a bonus under the plan. If the number of shares distributed is similar to past years, the entire payout would be worth less than $8 million this year, according to a union estimate. That’s compared with $160 million in 2007.

http://www.star-telegram.com/business/story/1271233.html

Last year was 2008, not 2007.

I don't think the "union estimate" in the article is accurate. The payouts are a dollar amount determined by the formula in the contracts - not a fixed number of shares. When the payouts are made in stock, the number of shares varies (depending on the current value of the stock). Thus, the payouts this year might be quite a bit larger than the $8 million estimate.

 

[AC AA LA FA]

thanks...my basic math, comprehension and web research skills are a bit off tonight..its time for bed.!

One thing I do know as fact is that I am puked over these bonus !!!

 

[Hopeful]

I could already hear a few defenses from the company....

"UNLIKE AIG, AMR TOOK NO FEDERAL BAILOUT MONEY"

"WHAT'S $168 MILLION AMONGST 1000 MANAGERS"

"WELL, IF YOU DON'T LIKE WHAT MANGERS GET, QUIT"

 

[FWAAA]

Not interested in variable compensation. The executives formula will still be astronomical and what do you think the lowly worker formula will be.

So what you're saying is the worthless union would not be able to negotiate a meaningful amount of upside for you, especially when compared to the executives? And because of that, you're not even interested?

I have heard the argument that for the 2003 concession rape, we as mechanics received 449 shares of stock optioned at $5. The critics say that well it hit near $40 a share and you would have made over $15000. Yea, but I lost $120,000 and the stock would have to hit $300 before I got back what I lost.

Unfortunately, the worthless union failed you and your coworkers.

UA pilots and mechanics got 55% of the equity of their employer in exchange for massive concessions in the Nineties. The worthless union (along with the equally impotent APA and APFA) settled for a mere 19% of the equity of AMR. As I've posted previously, the work groups should have demanded a much larger percentage.

Perhaps now is the time to demand 60% or 80% of the equity of AMR? Stock is currently nearly worthless but probably has some upside.

And unlike the suckers at UAL, I'm not talking about an ESOP. It wasn't the fact that they owned 55% of the company that was the problem - the ESOP was the problem.

NoW the executive elite upper class are still receiving their PUP pay because they have a CONTRACT....
So now you want us to ask for variable compensation?

I say restore everyone's base salary and NO BONUS OR PUP PAY FOR ANY EMPLOYEE UNTIL THE COMPANY IS PROFITABLE.

So on the one hand, there's no way your union will be able to negotitate meaningful variable compensation (see your first paragraph of this post) yet on the other hand you think they can successfully negotiate restoration of the 2003 concessions? Pay no attention to that inconsistency - or the mechanic behind the curtain.

 

[ArtTang]

I could already hear a few defenses from the company....

"UNLIKE AIG, AMR TOOK NO FEDERAL BAILOUT MONEY"

"WHAT'S $168 MILLION AMONGST 1000 MANAGERS"

"WELL, IF YOU DON'T LIKE WHAT MANGERS GET, QUIT"

But AA, along with several other airlines, did receive federal funds in the wake of 9-11. The fact that managers at AMR continue to take bonuses while AA continues to tank and the employees continue to work under concessionary contracts is something the unions should make very clear to the public. Given the fallout from the AIG bonuses, the public should be in no mood to hear that airline execs are reaping bonuses after the airline received federal aid.

The argument that top managers need to be compensated in order to retain their expertise does not fly in today's economic climate. Where exactly will they go? Who is banging down their doors to recruit them?