Z_Pilot
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Message from the MEC Regarding MAG Executives’ Compensation
From: MAG MEC
To: All MAG Pilots
Mesa Air Group recently issued its Proxy Statement pursuant to Section 14(a) of the Securities and Exchange Act of 1934. Within this Proxy Statement are many interesting facts concerning Mesa Air Group such as its executives’ compensation packages.
At a time when much of the airline industry is in flux, Mesa has grown, thanks in large part to our collective bargaining agreement, and the company’s executives are reaping the profits – not the employees who have helped this airline through this difficult time. As many of you know, your Negotiating Committee has been in recent discussions with Mesa management concerning both Contractual Compliance and Narrow Body pay rates. The Company’s proposal consisted of substandard pay rates, a 2-year contract extension, lengthy First Officer seat locks, and many other restrictions.
Mesa Air Group management has continued to express its concerns in regards to the health and viability of US Airways and our company’s future as it relates to all of our code share partners, and explains that these specific concerns are the rationale behind its latest offer.
However, management does not adhere to its own words or beliefs, as pay raises and healthy bonuses continue for Mesa Air Group Executives. For full details, read the Proxy Statement that can be found on the Mesa Air Group website at www.mesa-air.com and now also available on the MAG MEC homepage.
Following are a few highlights:
Jonathan Ornstein, Mesa Air Group CEO
* 2004 Salary: $250,000
* 2004 Bonus: $432, 500
* 2004 Other Annual Compensation: $361,296
* 2004 All Other Compensation: $1,862,076
* Of this, $1,860,000 was a retention bonus for entering into a 5-year employment agreement
* 2004 Personal use of Company Aircraft: $57,189
* 2004 Non Accountable Expense Allowance: $32,440
* 2004 Disability and Life Insurance Premium Payments: $8,451
* 401K Contributions
* Stock Options
CEO Jonathan Ornstein’s Employment Agreement
* 5-year agreement ending March 30, 2009
* Base Salary of $300,000, which is increased by $75,000 for the first and second years of the agreement
* Annual bonus ranging from a minimum of $52,500 to a maximum of $420,000
* Additionally, the Board may approve discretionary bonuses
* Amount equal to base salary into deferred compensation plan
* $5 Million Life Insurance Policy
* Stock Options
* If Mr. Ornstein is terminated without cause, he will be paid six-times his regular salary and bonus, and all of his non-vested stock options will vest immediately. If he is terminated for “good reason,” he is paid three-times his regular salary and bonus, and all of his non-vested stock options will vest immediately.
* Consulting fee of $200,000 per year for 7 years after agreement is fulfilled and he no longer works for Mesa Air Group
Michael Lotz
* 2004 Salary: $212,500
* 2004 Bonus: $330,625
* 2004 Other Annual Compensation: $223,734
* 2004 All Other Compensation: $1,487,000
* Of this, $1,485,000 was a retention bonus for entering into a 5-year employment agreement
President and COO Michael Lotz's Employment Agreement
* 5-year agreement
* Base Salary of $250,000, increased by $75,000 for the first and second years of the agreement
* Annual bonus ranging from a minimum of $40,000 to a maximum of $320,000
* Amount equal to base salary into deferred compensation plan
* Stock Options
* If Mr. Lotz is terminated without cause, he will be paid six-times his regular salary and bonus, and all of his non-vested stock options will vest immediately. If he is terminated for “good reason,” he is paid three-times his regular salary and bonus, and all of his non-vested stock options will vest immediately.
* $2 million Life Insurance Policy
* Company Aircraft Use
* Consulting fee of $150,000 per year for 7 years after agreement is fulfilled and he no longer works for Mesa Air Group
# # #
[/font]
Message from the MEC Regarding MAG Executives’ Compensation
From: MAG MEC
To: All MAG Pilots
Mesa Air Group recently issued its Proxy Statement pursuant to Section 14(a) of the Securities and Exchange Act of 1934. Within this Proxy Statement are many interesting facts concerning Mesa Air Group such as its executives’ compensation packages.
At a time when much of the airline industry is in flux, Mesa has grown, thanks in large part to our collective bargaining agreement, and the company’s executives are reaping the profits – not the employees who have helped this airline through this difficult time. As many of you know, your Negotiating Committee has been in recent discussions with Mesa management concerning both Contractual Compliance and Narrow Body pay rates. The Company’s proposal consisted of substandard pay rates, a 2-year contract extension, lengthy First Officer seat locks, and many other restrictions.
Mesa Air Group management has continued to express its concerns in regards to the health and viability of US Airways and our company’s future as it relates to all of our code share partners, and explains that these specific concerns are the rationale behind its latest offer.
However, management does not adhere to its own words or beliefs, as pay raises and healthy bonuses continue for Mesa Air Group Executives. For full details, read the Proxy Statement that can be found on the Mesa Air Group website at www.mesa-air.com and now also available on the MAG MEC homepage.
Following are a few highlights:
Jonathan Ornstein, Mesa Air Group CEO
* 2004 Salary: $250,000
* 2004 Bonus: $432, 500
* 2004 Other Annual Compensation: $361,296
* 2004 All Other Compensation: $1,862,076
* Of this, $1,860,000 was a retention bonus for entering into a 5-year employment agreement
* 2004 Personal use of Company Aircraft: $57,189
* 2004 Non Accountable Expense Allowance: $32,440
* 2004 Disability and Life Insurance Premium Payments: $8,451
* 401K Contributions
* Stock Options
CEO Jonathan Ornstein’s Employment Agreement
* 5-year agreement ending March 30, 2009
* Base Salary of $300,000, which is increased by $75,000 for the first and second years of the agreement
* Annual bonus ranging from a minimum of $52,500 to a maximum of $420,000
* Additionally, the Board may approve discretionary bonuses
* Amount equal to base salary into deferred compensation plan
* $5 Million Life Insurance Policy
* Stock Options
* If Mr. Ornstein is terminated without cause, he will be paid six-times his regular salary and bonus, and all of his non-vested stock options will vest immediately. If he is terminated for “good reason,” he is paid three-times his regular salary and bonus, and all of his non-vested stock options will vest immediately.
* Consulting fee of $200,000 per year for 7 years after agreement is fulfilled and he no longer works for Mesa Air Group
Michael Lotz
* 2004 Salary: $212,500
* 2004 Bonus: $330,625
* 2004 Other Annual Compensation: $223,734
* 2004 All Other Compensation: $1,487,000
* Of this, $1,485,000 was a retention bonus for entering into a 5-year employment agreement
President and COO Michael Lotz's Employment Agreement
* 5-year agreement
* Base Salary of $250,000, increased by $75,000 for the first and second years of the agreement
* Annual bonus ranging from a minimum of $40,000 to a maximum of $320,000
* Amount equal to base salary into deferred compensation plan
* Stock Options
* If Mr. Lotz is terminated without cause, he will be paid six-times his regular salary and bonus, and all of his non-vested stock options will vest immediately. If he is terminated for “good reason,” he is paid three-times his regular salary and bonus, and all of his non-vested stock options will vest immediately.
* $2 million Life Insurance Policy
* Company Aircraft Use
* Consulting fee of $150,000 per year for 7 years after agreement is fulfilled and he no longer works for Mesa Air Group
# # #
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