Qantas Employee Share Purchase

[DEFCON4]

IF every Qantas employee purchased $1000 worth of shares at $1.82 it would provide staff with a block of 15million shares.
Borrow the money to buy them and claim the purchase price as a tax deduction
Is this the way to go?
The logistics of arranging this a voting block are complex.Should the unions be encouraging this?
This is a thousand dollar investment in the future of Qantas and your own future employment.
sAVE THE ROO AND BUY SHARES

[packrat]

How many shares or what % of the share issue would be required to obtain a seat on the board?

[Alien Role]

See my post #18 on the "Qantas Board and senior executives conflict of interest" thread..

Role on...

[33 Disengage]

Word got around of an employee share buyout. First agenda item was to be the removal of the Board and CEO.

Nice idea but AJ and LC beat you to it. Trading in Qantas shares has been halted at the request of the Board. Their first agenda item is removal of all pilots and engineers!

[Howard Hughes]

Love it 33! :D

Pilots and engineers are a hindrance to running a good (sic) airline...;)

[B772]

DEFCON4.

Like your idea and there are ways to do it.

The interest on a loan is generally tax deductible provided the shares are purchased to generate taxable income ie, a dividend.

Just a few comments on your posting:

Your block of 15M shares worth about $27M would have little impact (would not even buy 2 DHC8-400's)

The logistics of 'voting' is a non event using the right investment vehicle.

There have been a number of employee buyouts of airlines considered in the past, such as United and Ansett.

Ps. How many QF shares are currently held by QF staff, family, beneficiaries etc ?

[tail wheel]

By my calculation, $27 million in shares would give you around 0.57% of the total issued capital of $4.729 billion.

And negligable influence at a Qantas AGM.

Indeed, whilst I didn't check, I suspect the existing and past Board Members and their supporters alone may hold adequate equity to out vote you.

Borrow the money to buy them and claim the purchase price as a tax deduction

Whilst Qantas continues not paying a dividend, or if their dividend remains less than rising interest costs, that acquisition would certainly be negative geared! :ok:

The consolation of course, is that as the share price continues to decline at least you won't be paying Capital Gains Tax! :E

[1a sound asleep]

You are forgetting that every shareholder has an individual right to vote and attend the AGM. I am sure a united front would rally huge support from mum and dad shareholders.

Imagine 5000 voiced and informed shareholders waiving "SACK THE CEO" banners at the AGM. Trust me this would be a HUGE message

If you are not a shareholder you have no rights

[tail wheel]

The ten largest investors in Qantas (http://annualreport.qantas.com.au/assets/pdfs/QantasFinancialReport200913ShareholderInformation.pdf)are all financial industry institutional investors, seeking both annual dividends on their investor's equity and capital growth in their investments. They account for almost 80% of all issued shares in Qantas.

None of those investors are renown for philanthropic investment in depreciating assets. Indeed, I suspect most have already experienced rather significant decline in their investment value and must be feeling "uncomfortable" with recent events?

They will control the company Board and management, rather than the Mum and Dad investors.

Perhaps that is the group you should be targeting?

[Rollingthunder]

I did my bit and bought shares in two of my airlines - Canadian Airlines and Air Canada and saw the share prices in both go to a sickening $0.00 - be very careful. Qantas bouncing around $2.00. $100,000 worth of shares won't buy you much of a say at shareholders meetings.

[gobbledock]

The ten largest investors in Qantas (http://annualreport.qantas.com.au/assets/pdfs/QantasFinancialReport200913ShareholderInformation.pdf)are all financial industry institutional investors, seeking both annual dividends on their investor's equity and capital growth in their investments. They account for almost 80% of all issued shares in Qantas.
They will control the company Board and management, rather than the Mum and Dad investors.
And another chunk is tied up with executives and other assorted lapdogs. The little man with his small investment may have a wee voice at times but holds no power whatsoever. It is part of the investment structure and set up that way to prevent the possibility of 35000 cranky employees and another 21 miliion Aussies voting out people like AJ. The only way he is going is if he resigns or if the Board privately votes unaminously that it is time for da little fella to 'step aside to pursue other interests and business ventures after leading QF into a strong market position and financially sound for a new leadership to step in' !

[B772]

The executive renumeration reforms come into effect on 1 July 2011.

Briefly; if 25% of shareholders vote against the renumeration report at two consecutive annual general meetings shareholders have the opportunity to vote on a motion to spill the board.

In 2008 41% of QF shareholders voted against the renumeration report, In 2009 the figure was 42%. In 2010 only 1% of QF shareholders voted against the renumeration report after QF agreed to review its long term incentives for executives.

[Air Ace]

Why don't you guys, through the union, set up a super fund which invests in qantas. There must be much more money there and the union would have far more power with that sought of voting power?

Have you looked at the requirements to establish a super trust fund? Would you really want your Super invested in shares not currently yielding a return? :ugh:

You don't need to go to that extent. I'll wages many of you are already Qantas shareholders through your current Super funds or investments.

Look at the 19 largest shreholdings and 4 substantial shareholders - do you find your Super fund in there, or a financial entity in which your Super fund has invested? Regrettably my Super fund is listed........ :{

You could write a letter to your Super fund or investment company questioning their investment in shares that do not pay dividends, have declining value, in a a company that appears to have disengaged with it's staff and is in the process of moving off-shore???

That could get investors nervous! :E