Originally Posted by
cgull
I guess one would have to be one of the MEC members or a fly on the wall during one of the closed door meetings they had about the bond formula but I cant imagine that anyone that was formulating the plan that would benefit from the distribution would also include a claw back provision that would take from them.
I do know that the UAL ALPA MEC approved a 5 million dollar payment to Steve Presser, a finance consultant, for his assistance in contract 2003/bond issue/stock distribution. This is in contrast to American's APA that paid Steve Presser 1 million for his consulting fee for essentially the same service that was provided to UAL ALPA. I only end up with more questions than answers.
Ah, Craig Gullickson, you never fail to disappoint!
If you ACTUALLY did the calculation, the "closer to retirement" pilots would generally have received MORE from the Gap2 calculation that was used (and with which I disagreed) IF they had Age 65 as law on the date of allocation. But don't let the FACTS get in the way of your "I HATE ALPA" drumbeat.
As to Presser, he was paid a FEE, as a percentage of the Bond amount. The Bond came in about $40M HIGHER than ANYONE had suggested it would, so you can consider that a $35M WINDFALL for the pilots of UAL, as ALL CALCULATIONS had been made based on $500M, not the ~$540M it returned to the pilots. All other monies he received as our advisor are paid out of a global "refund" package that the company provides for our negotiation expenses. This is a STANDARD thing, and, if you notice, the company is CURRENTLY paying UAL and CAL ALPA $10M in negotiating expenses UPFRONT for the current merger. Nothing nefarious about the company paying such fees, at all, even to our advisors!
Hopefully, your other "questions" will be slightly more informed?!