United Execs

[Michael]

screw the pilots..look at the sweet deal the execs gave themselves after all the cuts they imposed on everyone else.

United's top executives were already in line to receive as much as $115 million in stock as part of the company’s bankruptcy exit, but USA TODAY reports that figure could double or even triple based on the advance trading of new United shares to be issued this week. Part of United’s Chapter 11 exit plan gives the top 400 executives an 8% stake in the reorganized company. At the time the plan was approved, United’s consultants estimated the company’s post-bankruptcy stock would command a price of about $15 a share. But USA TODAY writes that as of Friday, “creditors who will receive airline stock as part of the settlement of United's recently completed Chapter 11 bankruptcy were selling at $43 a share on a ‘when issued’ basis.”
Still, executives won’t be able to cash in right away. As part of the plan, stocks and options are only available for sale over a four year period, with the first 20% becoming eligible for sale in six months. Duane Woerth, national president of the Air Line Pilots Association, calls the plan "over-the-top" and "an insult to employees who gave up a lot" in pay and benefits during Chapter 11. "Executive compensation in America has been crazy for a while," he says to USA TODAY, "but I don't think anyone was expecting this from a company coming out of Chapter 11."

Taken from http://blogs.usatoday.com/sky

 

[Greg Bockelman]

screw the pilots..look at the sweet deal the execs gave themselves after all the cuts they imposed on everyone else.



Taken from http://blogs.usatoday.com/sky

But it is better for us than it was. That represents 8% of the stock. It was going to be 15%. And I didn't know about the restrictions on selling it.

When we get our stock within the next month, we will be able to sell it the next day.

 

[Michael]

well I guess thats good your not upset about it. What do you think of management taking that much of a bonus though? Greg?

 

[SJP]

Methinks that companies should have to undergo six months of credit counselling before declaring Chapter 11, just like individuals now have to before declaring personal bankruptcy.

 

[Greg Bockelman]

well I guess thats good your not upset about it. What do you think of management taking that much of a bonus though? Greg?

Considering that it is, for the most part, the same bunch that put us into bankruptcy, they are way over compensated for what they are worth.

Upset? It doesn't do any good.

 

[Richard]

Methinks that companies should have to undergo six months of credit counselling before declaring Chapter 11, just like individuals now have to before declaring personal bankruptcy.

Here here! Especially when you consider that our courts have established precedent assigning rights to corp entities just as if they were individuals.

 

[Dave Siciliano]

On any new stock issue, there is what is called "red letter" stock and there is a period of time during which it cannot be sold. It's normal to try to be sure those issued that stock aren't looking to have it immediately over valued; sell it and leave. Goes back some time to protect the public from manipulation of new issues by management (can't imagine why the rule was first passed--can you )

Dave

 

[wsuffa]

On any new stock issue, there is what is called "red letter" stock and there is a period of time during which it cannot be sold. It's normal to try to be sure those issued that stock aren't looking to have it immediately over valued; sell it and leave. Goes back some time to protect the public from manipulation of new issues by management (can't imagine why the rule was first passed--can you )

Dave

That will be "restricted stock" or stock subject to a "lock-up". Very common to have a lock-up for managment and the Board on IPOs... sometimes even on secondaries.