US Execs Receive Millions

These "awards" could have put free beverages in the mouths of every passenger of US Airways, not to mention free meals. It's just outrageous that they're making everyone, employees and customers, take massive cuts while they ride on their high horse...or camel...acting like they're heroes. It's really no surprise with this regime.

I'm pleased that the US-AFA and the AWA-AFA were both involved in this announcement together.
 
missthe727 said:
For Immediate Release

US AIRWAYS EXECUTIVES RECEIVE MILLIONS IN STOCK
WHILE PASSENGERS CONTINUE TO BE NICKEL AND DIMED


Washington, DC - Flight attendants at US Airways, represented by the Association of Flight Attendants-CWA (AFA-CWA), are outraged over the announcement that seven of the airline's top executives were recently awarded stock appreciation grants totaling millions of dollars. On August 5, 2008, less than one week after US Airways began charging passengers two dollars for non-alcoholic beverages, the company's Board of Directors Compensation Committee approved over 800,000 shares as part of the airline's "Equity Incentive Plan". Chairman and CEO Doug Parker received 275,000 shares.

The stock appreciation rights have an exercise price of $6.70, the fair market value of the company's common stock on the date of grant. The stock appreciation rights have a seven year term and vest in one-third increments on each of the first three anniversaries of the date of grant. The stock appreciation rights also become fully vested upon termination due to death, disability, retirement, or in the event of a change in control of the company.

"It is disheartening to watch US Airways top executives enrich themselves with 'performance' based stock awards while flight attendants continue to work under a bankruptcy driven contract that slashed wages and eliminated pensions and benefits," said US Airways East AFA-CWA President Mike Flores. "While US Airways has improved its on time performance, the airline still ranks number one in customer complaints which makes it even harder to justify this 'performance' bonus."

US Airways West AFA-CWA President Lisa LeCarre, who represents the America West flight attendants of US Airways added, "While management has every right to award themselves performance based stock grants, it is a slap in the face to the hard working flight attendants who are facing job losses and have not received a simple cost-of-living increase in almost six years. It is also an affront to the passengers being nickel and dimed for such comforts as a glass of water. When will corporate America understand the devastating effects of this erosion on public and employee moral and trust?"

For over 60 years, the Association of Flight Attendants has been serving as the voice for flight attendants in the workplace, in the aviation industry, in the media and on Capitol Hill. More than 55,000 flight attendants at 20 airlines come together to form AFA-CWA, the world's largest flight attendant union. AFA is part of the 700,000-member strong Communications Workers of America (CWA), AFL-CIO. Visit us at www.afanet.org.

~~~~~~~~~~~~~~~~~
Click to expand...

Better go back and research the facts before releasing press releases.
According to the 10k wizard on 7th Aug 08...
http://ccbn.10kwizard.com/cgi/convert/pdf/...p;dn=2&dn=3
It was the "Stockholders" that voted in favor of the of the "Equaity Incentive Plan on 11th June 08.
 
The stockholders approved the plan, but the BOD approved the specific grant.

Jim
 
I could be wrong but I do not think this has any direct cost to the company. Similar to stock options. When they strike them in 3 years (If the stock is above $6.75) the company then will issues stocks to sell and the employee gets the difference from the issue price. It will devalue the shareholders a bit. This seems liek a cheap way to pay exes.

In fact this is the kind of compensation Unions should go after for the rank and file, but alas they never would.
 
UPNAWAY said:
I could be wrong but I do not think this has any direct cost to the company. Similar to stock options. When they strike them in 3 years (If the stock is above $6.75) the company then will issues stocks to sell and the employee gets the difference from the issue price. It will devalue the shareholders a bit. This seems liek a cheap way to pay exes.

In fact this is the kind of compensation Unions should go after for the rank and file, but alas they never would.
Click to expand...

I agree, much less painful than direct mega dollar bonuses based on stock performance which is what other airlines have in place.
 
UPNAWAY said:
I could be wrong but I do not think this has any direct cost to the company.
Click to expand...
Relative to stock options, there is a cost to the company. With stock options, the stock is bought from the company at the exercise price when the option is exercised, thus money flows into the company coffers. With these SAR's, the stock is given when the SAR is exercised, thus no money flowing into the company coffers.

Jim
 
I really doesn't matter if the stockholders approved the plan or the BOD made it valid, it is still wrong. The incentive to continue to work for an airline is to simply be employed. This is the simple realm of understanding the company has tried to instill in it's rank and file employee's. What has to be good for the goose had better be good for the gander.

The sad part of this, is that we ( the employee's) probably let this happen by not taking the time to vote for it when we recieve the notification of stock action. By not doing anything is a vote "FOR" the presintaion. Secondly, for the BOD to issue any options what so ever in the delicate price of the stock, much less the price of jet fuel is the worst of timing I have ever seen. Not to mention they did this right after the "a la carte" went into effect. Keeping quality employee's is important to every company.... the Sandcastle would do itself a favor by trying to keep the valued rank and file members that trudge to work everyday so these fools have something to do other than twiddle their thumbs and say "DAH....

The company made nearly 2 billion dollars prior to the increased valuation of jet fuel. Had the incentive program been in place to have the VPs make proper choices, that money could have been used to hedge fuel costs, complete labor contracts, re-negotiate A/C leases. etc. This is all just ludicris....

Just my opinion...
 
And to upanaway,

The unions did negotiate stock in the last bankruptcy, only to have the BOD and Creditors reject it so the Judge eliminated it from the concessionary CBAs ratified.
 
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