? For Jetblue Pilots

[CosmoKramer]

Spirit's TA does not include any guaranteed stock option plan or profit sharing. How well did the pilots do who were there for their IPO? Thanks.

 

[Joblu]

Spirit's TA does not include any guaranteed stock option plan or profit sharing. How well did the pilots do who were there for their IPO? Thanks.

They made a sh*tload of money!

We get profit sharing if we make money or not.

CSPP (optional).

Spirit going public?

Did your TA pass?

 

[Splert]

Those who are not pre IPO are mostly underwater.

I think the number is close to 95%.

We don't have guaranteed anything.

Our profit sharing is not part of our contract. The Juicers will tell you that the PEA has a section that refers to Profit Sharing. However, this section specifically refers to the ability of the company to change, modify or terminate the Profit Sharing at anytime. Once you point that out the juicers will start talking about well UAL/NWA etcs pension wasn't guaranteed either - "was it"?

 

[lostplnetairman]

http://www.washingtonpost.com/wp-srv/liveonline/02/business/alexander/business_neeleman061202.htm

They had the ability to purchase shares at $23/share. One has to have the cash to make the purchase, however, and it is a taxable event.

There was a 3 for 2 stock split in 2003 and again in 2005; here's the history of the stock:
http://performance.morningstar.com/..._history_page&t=JBLU&region=USA&culture=en-US

So you can do the math and see the "killing" they made.

 

[BeachBummer]

Most guys I've talked to about it that got the option, laugh. It'll have to quadruple from where it is now to break even. Long term investment...

 

[J32driver]

Yeah... the stock options are essentially worthless for almost everyone that wasn't pre IPO, that includes me. The stock would have to double in price to really help any of us. And go back up to around $50-60 a share to help all of us.

 

[AKAAB]

Let's not forget the ten year horizon on the stock options, too. They turn to dust for a lot of guys in the coming years and will expire utterly worthless.

We should all exercise one share and demand the certificate just so we can put them in a frame on the wall. Or, better yet, sell it on EBay for double!

 

[Joblu]

Guys,

RTFQ

Did the pre IPO pilots at JB make money on the stock?

ABSOLUTELY AND THEN SOME.

 

[CosmoKramer]

Guys,

RTFQ

Did the pre IPO pilots at JB make money on the stock?

ABSOLUTELY AND THEN SOME.

Thanks Joblu, looks like we will be left in the cold if the ta passes.....got to have it in writing here....(WHEN nk goes public)

 

[ultrarunner]

Guys,

RTFQ

Did the pre IPO pilots at JB make money on the stock?

ABSOLUTELY AND THEN SOME.

Actually, it depends upon when and if they sold the stock. Some folks get so greedy and hold and hold, only to watch it tank.

Also depends on how much stock they were granted.

But yeah, some folks likey make some good money. And the really smart ones sold every share they had on the second day of trading. You would have been crazy to hold a stock opening at 27 bucks and watch it hit 45 bucks at close!

I'd have chaffed every vested share I had! And felt good about it!

 

[lostplnetairman]

It looks like they made a bundle if they sold it the first day. After that...I posted the stock history.

 

[ultrarunner]

http://www.washingtonpost.com/wp-srv/liveonline/02/business/alexander/business_neeleman061202.htm

They had the ability to purchase shares at $23/share. One has to have the cash to make the purchase, however, and it is a taxable event.

Those are the 'stock options' Lost. And the 23 bucks a share is the 'strike price'.

You only need cash to purchase options if they are getting close to their expiration date, and you want them.

Other than that, you simply do a 'same-day-exercise-sale'. Provided the options are not 'under water'.

But a 23 dollar stock option went quickly underwater.

 

[bluechunks]

It looks like they made a bundle if they sold it the first day. After that...I posted the stock history.

Bingo.

Here's the gotcha: the JetBlue options vested over time, and all the pre-IPO employees were also under a trading blackout for a period following the IPO (SEC rules.) They watched the stock zoom and could not exercise a single option.

Eventually a small number of pilots did very very well on some of their options when the blackout ended and their options were vested, but they were the exception and not the rule. Lots of pilots were sitting on enormous paper gains for a while but by the time the options vested they were under water.

Nobody retired early from the gains, although some pilots bought some pretty cool "toys" and more than one had a nice down-payment for a new house.

 

[AKAAB]

Bluechunks...

+1

 

[CosmoKramer]

Thanks for the quality info!!!!! Much appreciated.