I. M. Esperto
16th Nov 2001, 17:06
We hear a lot these days about the woes of the airline industry. In
fact, so significant were the industry impacts following the Sept. 11
attacks, Congress felt compelled to assist with $15 billion of
corporate welfare — tax dollars not directed to those who are filling
unemployment lines, but instead dollars to the corporate executives of
companies such as United Airlines, American, Delta, and others.
As taxpayers, we were told that these companies desperately needed the
help, that they would be responsible, and that help for laid-off workers
would be forthcoming. It didn't take long, however, for the board of
directors at United Airlines to demonstrate how they could best spend
their share of the bailout dollars.
We all read the headlines how UAL replaced their CEO, James Goodwin,
with John Creighton However, what you may have missed is what the board
of directors saw fit to give Goodwin for his part in running the company
to near bankruptcy.
To begin, they added six years to his 34 years of service, resulting in
40 years' service and a pension valued at $500,000 per year, or a
whopping $1,400 per day. Then they granted him 611,450 stock options,
which he can exercise over the next 10 years. Because these options are
delivered at today's prices, a one-dollar gain in share price translates
into $611,450. Add to this his severance, the amount of which at this
point they are unsure, but it's between $5 million and $7 million.
You would think he should be able to take pretty care of himself at this
point, but apparently it wasn't enough. To the above, they threw in
another 40,000 shares, valued at over $700,000. Plus, for those
weekends when Goodwin just can't find anything to do, they agreed to pay
for his membership at the country club, and provide him a company car
for life.
When you get done fuming over how taxpayer dollars were spent, then
compare all that Goodwin received to what one woman who worked a ticket
counter in Denver will receive. A dedicated employee for 30 years,
she'll have no adjustment in service, no options, nor any severance —
only her $2,000-per-month pension, or $65 per day.
Is one individual's labor so valued that even as they are dismissed for
their inability to succeed, they are rewarded? It is obvious to me that
corporate America will take care of itself. My only question is, who is
going to take care of those doing the work? Twenty Percent of the UAL
real workforce is expected to be laid off.
fact, so significant were the industry impacts following the Sept. 11
attacks, Congress felt compelled to assist with $15 billion of
corporate welfare — tax dollars not directed to those who are filling
unemployment lines, but instead dollars to the corporate executives of
companies such as United Airlines, American, Delta, and others.
As taxpayers, we were told that these companies desperately needed the
help, that they would be responsible, and that help for laid-off workers
would be forthcoming. It didn't take long, however, for the board of
directors at United Airlines to demonstrate how they could best spend
their share of the bailout dollars.
We all read the headlines how UAL replaced their CEO, James Goodwin,
with John Creighton However, what you may have missed is what the board
of directors saw fit to give Goodwin for his part in running the company
to near bankruptcy.
To begin, they added six years to his 34 years of service, resulting in
40 years' service and a pension valued at $500,000 per year, or a
whopping $1,400 per day. Then they granted him 611,450 stock options,
which he can exercise over the next 10 years. Because these options are
delivered at today's prices, a one-dollar gain in share price translates
into $611,450. Add to this his severance, the amount of which at this
point they are unsure, but it's between $5 million and $7 million.
You would think he should be able to take pretty care of himself at this
point, but apparently it wasn't enough. To the above, they threw in
another 40,000 shares, valued at over $700,000. Plus, for those
weekends when Goodwin just can't find anything to do, they agreed to pay
for his membership at the country club, and provide him a company car
for life.
When you get done fuming over how taxpayer dollars were spent, then
compare all that Goodwin received to what one woman who worked a ticket
counter in Denver will receive. A dedicated employee for 30 years,
she'll have no adjustment in service, no options, nor any severance —
only her $2,000-per-month pension, or $65 per day.
Is one individual's labor so valued that even as they are dismissed for
their inability to succeed, they are rewarded? It is obvious to me that
corporate America will take care of itself. My only question is, who is
going to take care of those doing the work? Twenty Percent of the UAL
real workforce is expected to be laid off.