Boyd on UAL Management Bonuses

[FDJ2]

Aviation Perspectives & Insights
Available Nowhere Else

[FONT=Tahoma, Verdan, Lucida]Airports:USA Forecast Flash: [/FONT][FONT=Tahoma, Verdan, Lucida]2006 General Trends
[/FONT][FONT=Tahoma, Verdan, Lucida]_______________[/FONT]​

[FONT=Tahoma, Verdan, Lucida]Hot Flash[/FONT][FONT=Tahoma, Verdan, Lucida] - December 27, 2005[/FONT]
[FONT=Tahoma, Verdan, Lucida]Message From United Management: Let Them Eat Cake
[/FONT][FONT=Tahoma, Verdan, Lucida]Now That Your Pension's Gone...[/FONT]
[FONT=Tahoma, Verdan, Lucida]United Airlines senior management just announced another part of its grand Chapter-11 exit plan. It seems that when the company emerges, 400 select members of United Airlines' executive and senior management team will be awarded 15% ownership of the carrier, worth a tidy $285 million - or more. [/FONT]
[FONT=Tahoma, Verdan, Lucida]From The Marie Antoinette School of Management... [/FONT][FONT=Tahoma, Verdan, Lucida]Nice compensation. Royalty does have its privileges and perks, you know.[/FONT]
[FONT=Tahoma, Verdan, Lucida]And, why not? Now that United's employee rank-and-file saved their airline via double-digit pay and benefit cuts, not to mention having their pensions trashed, United's management, naturally, sees fit to reward itself, with a stock deal that will almost certainly make at least some of them - if not all of them - a whole lot richer. [/FONT]
[FONT=Tahoma, Verdan, Lucida]Forget the fact this this is the same wonderful team of brilliant thinkers who have made United a million-dollar playground for who-knows how many lawyers and other outside "advisors" who dreamed up vapor-brained and vapor-results ideas like Ted. Or, how 'bout the deal early on, according to news reports, where this same management team had to pay some outside company $1 million a month to tell them how to re-structure the United Express

system. Funny, if this management team is worth the better part of a third of a billion bucks in exit-rewards, how come they couldn't figure stuff like this out for themselves? It's probably yet another indication of just how hands-on this UA senior management team must be.[/FONT]
[FONT=Tahoma, Verdan, Lucida]Meanwhile, Out In The Provinces...[/FONT][FONT=Tahoma, Verdan, Lucida] But while United's senior leaders are probably planning how to use this eventual wonderful windfall - maybe a nice condo on Longboat Key, or a college fund for the kids, or maybe just a new Porsche Cayenne Turbo-S, the scene among the rank-and-file might be a little bit different. [/FONT]
[FONT=Tahoma, Verdan, Lucida]How's this for starters - as a direct result of the cuts they gave to save their company, some current and retired employees are finding it necessary to materially cut back in their own lifestyles. Some are actually selling their homes because that pension they worked so hard for is now essentially a bargain-basement monthly check from the PBGC. With pay cuts of 25% or more, Christmas this year was no doubt tough on a lot of United families.[/FONT]
[FONT=Tahoma, Verdan, Lucida]But not, apparently, on the key leaders at United - some of whom were the very people in charge when the airline sank into bankruptcy in the first place. There is nothing wrong with valid management compensation. But under these circumstances, a "reward" that averages something like $710,000 per executive has a real nasty odor to it.[/FONT]
[FONT=Tahoma, Verdan, Lucida]Sure, there's two comebacks to this. One that it's to "keep good talent in place," which is an argument that they'd probably best not bring up. The second is that, hey, it's not cash, just stock - probably stock they can't sell for a couple of years. Right - so these guys can depend on the rank-and-file to work hard at their new, lower salaries to make sure the value of the shares goes up even more.[/FONT]
[FONT=Tahoma, Verdan, Lucida]It all has a nasty resemblance to the stuff a nineteenth century crackpot named Marx used to babble about.[/FONT]​

 

[Chuck Yogourt]

Aviation Perspectives & Insights

Available Nowhere Else

[FONT=Tahoma, Verdan, Lucida]Airports:USA Forecast Flash:[/FONT][FONT=Tahoma, Verdan, Lucida]2006 General Trends[/FONT][FONT=Tahoma, Verdan, Lucida]
[/FONT][FONT=Tahoma, Verdan, Lucida]_______________[/FONT]
​

[FONT=Tahoma, Verdan, Lucida]Hot Flash[/FONT][FONT=Tahoma, Verdan, Lucida] - December 27, 2005[/FONT]
[FONT=Tahoma, Verdan, Lucida]Message From United Management: Let Them Eat Cake
[/FONT][FONT=Tahoma, Verdan, Lucida]Now That Your Pension's Gone...[/FONT]
[FONT=Tahoma, Verdan, Lucida]United Airlines senior management just announced another part of its grand Chapter-11 exit plan. It seems that when the company emerges, 400 select members of United Airlines' executive and senior management team will be awarded 15% ownership of the carrier, worth a tidy $285 million - or more. [/FONT]
[FONT=Tahoma, Verdan, Lucida]From The Marie Antoinette School of Management... [/FONT][FONT=Tahoma, Verdan, Lucida]Nice compensation. Royalty does have its privileges and perks, you know.[/FONT]
[FONT=Tahoma, Verdan, Lucida]And, why not? Now that United's employee rank-and-file saved their airline via double-digit pay and benefit cuts, not to mention having their pensions trashed, United's management, naturally, sees fit to reward itself, with a stock deal that will almost certainly make at least some of them - if not all of them - a whole lot richer. [/FONT]
[FONT=Tahoma, Verdan, Lucida]Forget the fact this this is the same wonderful team of brilliant thinkers who have made United a million-dollar playground for who-knows how many lawyers and other outside "advisors" who dreamed up vapor-brained and vapor-results ideas like Ted. Or, how 'bout the deal early on, according to news reports, where this same management team had to pay some outside company $1 million a month to tell them how to re-structure the United Expresshttp://www.aviationplanning.com/images/marx1.JPG system. Funny, if this management team is worth the better part of a third of a billion bucks in exit-rewards, how come they couldn't figure stuff like this out for themselves? It's probably yet another indication of just how hands-on this UA senior management team must be.[/FONT]
[FONT=Tahoma, Verdan, Lucida]Meanwhile, Out In The Provinces...[/FONT][FONT=Tahoma, Verdan, Lucida] But while United's senior leaders are probably planning how to use this eventual wonderful windfall - maybe a nice condo on Longboat Key, or a college fund for the kids, or maybe just a new Porsche Cayenne Turbo-S, the scene among the rank-and-file might be a little bit different. [/FONT]
[FONT=Tahoma, Verdan, Lucida]How's this for starters - as a direct result of the cuts they gave to save their company, some current and retired employees are finding it necessary to materially cut back in their own lifestyles. Some are actually selling their homes because that pension they worked so hard for is now essentially a bargain-basement monthly check from the PBGC. With pay cuts of 25% or more, Christmas this year was no doubt tough on a lot of United families.[/FONT]
[FONT=Tahoma, Verdan, Lucida]But not, apparently, on the key leaders at United - some of whom were the very people in charge when the airline sank into bankruptcy in the first place. There is nothing wrong with valid management compensation. But under these circumstances, a "reward" that averages something like $710,000 per executive has a real nasty odor to it.[/FONT]
[FONT=Tahoma, Verdan, Lucida]Sure, there's two comebacks to this. One that it's to "keep good talent in place," which is an argument that they'd probably best not bring up. The second is that, hey, it's not cash, just stock - probably stock they can't sell for a couple of years. Right - so these guys can depend on the rank-and-file to work hard at their new, lower salaries to make sure the value of the shares goes up even more.[/FONT]
[FONT=Tahoma, Verdan, Lucida]It all has a nasty resemblance to the stuff a nineteenth century crackpot named Marx used to babble about.[/FONT]
​

So what. United should be gone. It has sat in B.K. now for three years. I don't care if the "execs" gave themselves a golden parachute. I don't care if United families "suffered" at christmas. This turd should be flushed. In the end it doesn't matter anyway. United will fall and be gone in it's next B.K. venture which will happen by the end of the year.

 

[F/O]

So what. United should be gone. It has sat in B.K. now for three years. I don't care if the "execs" gave themselves a golden parachute. I don't care if United families "suffered" at christmas. This turd should be flushed. In the end it doesn't matter anyway. United will fall and be gone in it's next B.K. venture which will happen by the end of the year.

The best part of this is UAL is still rubbin' it in the face of "turds" like you....:laugh:

 

[Chuck Yogourt]

The best part of this is UAL is still rubbin' it in the face of "turds" like you....:laugh:

Enjoy your pension. Enough said.

 

[flx757]

Enjoy YOURS.:smash: :laugh:

That's enough said.

 

[G4G5]

It always amazes me how this happens. Does this have to go in front of the BK judge?

This almost has the makings of a merger. Lets get it out of CH11, then sell it to CAL. We make some quick money on the sale of company and the stock

 

[F/O]

Enjoy YOURS.:smash: :laugh:

That's enough said.

Thanks....you beat me to it

 

[whymeworry?]

Had a UAL guy in my js the the other day. After telling me show frigging shi++y their contract indeed is, I feel bad for the employees there. I have made a few posts that the UAL pilots folded and didn't put up much of a fight. The reality is they were PROMISED that paycuts would save their pension. Well, they go the good ol' bait-n-switch that US business are known for. The only thing I can't understand is why someone over there hasn't gone postal yet.

The absolute theft of the employees futures at UAL/ NWA/ DAL is attrocious. I see today that the media has dedicated a full 27 minutes of airtime to some Frontier jet that has a cargo door light indication (big deal, I've had this anomolly at least a dozen times in my career... always a faulty microsensor). So they clearly have the airtime to waste on useless topics like a plane circling to land at LAX but they can't be bothered with even spending 30 seconds on revealing the corporate terrorism happening across the landscape of the airline business.

Pitty the ignorant who buy tickets on UAL. They'll be supporting the robber-barrons of this century while getting probably the most lousy service out there.

 

[capt. megadeth]

The only thing I can't understand is why someone over there hasn't gone postal yet.

I have been wondering the same thing myself.

 

[Mugs]

Enjoy your pension. Enough said.

Is it true Chuck that your Avatar is in fact a clip of you giving your dog its daily beating?