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737
Manager
Joined: Nov 20, 2002
Posts: 43
Location: USA
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Has anyone else noticed the trend which has been taking shape lately? Specifically, I'm referring to the contract extensions which have occurred recently which have a common thread, stock options. Pilots, ramp/operations/provisioning, mechanics, dispatchers, have had equity based compensation (stock options) included in their contracts.
Currently, flight attendants & customer service are engaged in negotiations. And, SWA has notified their unions of the intent to offer stock options. And, one of the incentives to get these tentative agreements signed and approved before the end of the year is now obvious. The SEC (Securities & Exchange Commission) established new rules begining in '03, requiring shareholder approval prior to offering stock options. In effect, that would delay the bargaining process even further.
Does anyone have any thoughts on this?  |
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 Posted:
Sat Dec 14, 2002 4:23 pm |
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LUVINMCO
Newbie
Joined: Dec 24, 2002
Posts: 2
Location: USA
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| I don't have a problem with the stock options. Just like our profit sharing it gives every employee a vested interest in the companies performance. Therefore people are more likely to be frugal with the companies resources because it will effect how much ends up in our pocket down the line. As long as our benefits and wages are competitive I look at the stock options as an extra retro check of sorts, I am not going to rich off it most likely (but it could happen I guess) but an extra several thousand dollars is nice. As long as the next negotiations don't try to short us pay for more stock options I will be alright with it. |
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Posted:
Tue Dec 24, 2002 11:17 am |
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737
Manager
Joined: Nov 20, 2002
Posts: 43
Location: USA
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I'm in agreement with most of what you stated. Certainly, the airline industry is very volatile right now and it's important to focus on both the short and long term, as it relates to our labor agreements. If you look at LUV's historical trends and have confidence, stock-options are not a bad thing. On the other hand, I would'nt want to rely solely on equity based compensation for any cost-of-living adjustments, in lieu of "hard" dollars. Additionally, my concern over stock options are simply the procedure, ie. shareholder approval prior to presenting a tentative agreement. Another delay tactic, maybe?
Let's face it, if we all continue to do our jobs and the revenue side of the equation rises, we should be able to prosper.
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Posted:
Tue Dec 24, 2002 1:15 pm |
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planedoctor
Site Admin
Joined: Oct 08, 2002
Posts: 306
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| Quote: |
| Just like our profit sharing it gives every employee a vested interest in the companies performance. Therefore people are more likely to be frugal with the companies resources because it will effect how much ends up in our pocket down the line. |
Although it's documented that employee owned companies do OK one shouldn't forget the one that really sucked at it and is in our industry. UAL's ESOP is proof the above statement isn't true. Granted I would have thought prior to this happening with UAL that a companies employee's would strive to make the company profitable, but I guess not! I would rather say accepting stock options would have to be "icing on the cake."
Be cautious about stocks and the false hopes of feeling part owner. Do you remember all the horror stories of the people who lost everything when ENRON fell?
LOVINMCO made a good point 
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| I am not going to rich off it most likely (but it could happen I guess) but an extra several thousand dollars is nice. As long as the next negotiations don't try to short us pay for more stock options I will be alright with it. |
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Posted:
Tue Dec 24, 2002 4:38 pm |
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planedoctor
Site Admin
Joined: Oct 08, 2002
Posts: 306
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There was a interesting article written about ESOP's and how USAir and UAL's work. You can find it HERE
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Posted:
Thu Dec 26, 2002 10:17 am |
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RDUCALTECH
Intern
Joined: Nov 27, 2002
Posts: 7
Location: USA
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If you didn't know CAL has a employee stock purchase plan, sold to particpating employees at the end of every qtr. The plan ran out of stock in Nov. It won't be till May when and if the Board of directors approve more stock to be sold to employees at a 15% discount. As you can surely figure, they had plenty stock to sell at 35.00 a share.  |
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Posted:
Sun Dec 29, 2002 10:43 pm |
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