Kenn didn't know about the STIP?

[doh]

Have you seen the new paint job? It's Ricci Grey...it changes its colors constantly, with no warning!:laugh:

 

[GlorifiedCabbie]

Uncle's announcement said he was working on a new bonus system in place of the STIP. One of the ways he was going to help the Flex pilots avoid taxes was by issuing "phantom stock". It might be hard for the Flex pilots to comprehend because it is common in executive compensation packages. Obviously he thinks the Flex pilots are fools and don't deserve his respect.

 

[Fresh Air]

From Wikipedia, re phantom stock

Phantom stock is a contractual agreement between a corporation and recipients of phantom shares that bestow upon the grantee the right to a cash payment at a designated time or in association with a designated event in the future, which payment is to be in an amount tied to the market value of an equivalent number of shares of the corporation's stock.Thus, the amount of the payout will increase as the stock price rises, and decrease if the stock falls, but without the recipient (grantee) actually receiving any stock. Like other forms of stock-based compensation plans, phantom stock broadly serves to align the interests of recipients and shareholders, incent contribution to share value, and encourage the retention or continued participation of contributors.

Phantom stock can, but usually does not, pay dividends. When the grant is initially made or the phantom shares vest, there is no tax impact. When the payout is made, however, it is taxed as ordinary income to the grantee and is deductible to the employer. Generally, phantom plans require the grantee to become vested, either through seniority or meeting a performance target.

Sure sounds like an imaginary carrot to dangle in front of the employees. "If you all work really, reeeeeally hard, fly broken airplanes, never call in sick, etc., etc., and if Kenn doesn't spend all the company's money buying stuff from his other businesses like he did with Options, then the company's stock might go up and you will get a payout at some time in the future unless you leave the company. Oh, and it will still be taxable as ordinary income just as if I paid you your bonus today but didn't want to."

What a deal!

 

[BlueNose]

[/B]Sure sounds like an imaginary carrot to dangle in front of the employees. "If you all work really, reeeeeally hard, fly broken airplanes, never call in sick, etc., etc., and if Kenn doesn't spend all the company's money buying stuff from his other businesses like he did with Options, then the company's stock might go up and you will get a payout at some time in the future unless you leave the company. Oh, and it will still be taxable as ordinary income just as if I paid you your bonus today but didn't want to."

What a deal!

And you'll be paid in Quatloos. Any FO pilot can name that tune in one note.

 

[BlueNose]

Phantom stock is a contractual agreement between a corporation and recipients of phantom shares that bestow upon the grantee the right to a cash payment at a designated time or in association with a designated event in the future, which payment is to be in an amount tied to the market value of an equivalent number of shares of the corporation's stock.Thus, the amount of the payout will increase as the stock price rises, and decrease if the stock falls, but without the recipient (grantee) actually receiving any stock. Like other forms of stock-based compensation plans, phantom stock broadly serves to align the interests of recipients and shareholders, incent contribution to share value, and encourage the retention or continued participation of contributors.

phantom ˈfan(t)əm/
noun; plural: phantoms
1. a ghost. "a phantom who haunts lonely roads"
synonyms: ghost, apparition, spirit, specter, wraith;

2. a figment of the imagination. "he tried to clear the phantoms from his head and grasp reality"
synonyms: delusion, hallucination, illusion, chimera, vision, mirage

3. (modifier noun) denoting a financial arrangement or transaction that has been invented for fraudulent purposes but that does not really exist.
"he diverted an estimated $1,500,000 into phantom bank accounts"

The stock scheme falls under definition 3, and any gains you expect from it will come under definition 2, just like the supplemental pay in the FO pilots' contract.

 

[exagony]

Did anyone get their STIP bonus today?

 

[doverboy42]

Did anyone get their STIP bonus today?


Really.......

 

[luckydog]

Did anyone get their STIP bonus today?

Don't worry, next week volunteers will start discussing the STIP so I'm sure it'll work out great. It's going to be committee thing, those are always so successful at FJ.

 

[exagony]

Did anyone get their STIP bonus today?


Really.......

Get those cards in!

 

[dime line]

Funny after the RTA merger there was a pilot compensation committee that Ricci formed, they meet for about 6 weeks, came up with solutions and Ricci dismissed them and the was the last of it. All that time wasted for nothing just pilot feel-good.