USA Today blasts United and its top executives for reaping potentially huge rewards through United Airlines' bankruptcy restructuring.
In negotiations with major creditors, 400 United executives walked away with 8% of the new company, which is slated to begin NASDAQ trading today under the ticker symbol UAUA. That's a big slice of the pie, even if the shares don't fully vest for four years. It could be worth more than $300 million, based on private trading of shares in the range of $40 to $43 in recent days.
This could actually end up as a pittance for the lower-rung execs -- after all, $300M divided 400 ways is only $750K in four years and the flucutations in the airline industry make the realization of that money an iffy proposition. But the principle is basically sound: execs of failed companies should not reap rewards.
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