What happens if DAL pilots strike?
06-10-2015, 08:26 PM
#1
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Joined APC: Oct 2014
Position: Downward-Facing Dog Pose
Posts: 1,537
What happens if DAL pilots strike?
Lemme tell you what will happen. But first, a little background.
Delta management is largely compensated in stocks and options. This is because being compensated in this way is advantageous from a tax standpoint. However, this leaves mgmt in a very vulnerable position, as anything that causes the stock price to go down hits them right where it matters most to them...in their net worth. And, they cannot just sell all their holdings at one whack, due to myriad SEC rules et al.
It is because mgmt is largely compensated in co. equity that mgmt is so willing to engage in a $5 BILLION stock buyback program, as this directly benefits their equity holdings (mgmt loves to call this "rewarding the co. investors" which, guess what?, includes them!).
The truth is that the DAL pilot group has mgmt by the cajones. Why? Because the DAL pilot group has the means and opportunity to cause the co. stock price to go down, and down hard. This is mgmt's cajones...their holy grail.
Credibly threaten the co.'s stock price (read: mgmt is convinced you can and will take the stock down) and just watch how quickly the craven rats come to the negotiating table and start treating the DAL pilot group with the respect it deserves.
The two key words are: credible threat....the weasels will laugh and scoff at anything less.
Delta management is largely compensated in stocks and options. This is because being compensated in this way is advantageous from a tax standpoint. However, this leaves mgmt in a very vulnerable position, as anything that causes the stock price to go down hits them right where it matters most to them...in their net worth. And, they cannot just sell all their holdings at one whack, due to myriad SEC rules et al.
It is because mgmt is largely compensated in co. equity that mgmt is so willing to engage in a $5 BILLION stock buyback program, as this directly benefits their equity holdings (mgmt loves to call this "rewarding the co. investors" which, guess what?, includes them!).
The truth is that the DAL pilot group has mgmt by the cajones. Why? Because the DAL pilot group has the means and opportunity to cause the co. stock price to go down, and down hard. This is mgmt's cajones...their holy grail.
Credibly threaten the co.'s stock price (read: mgmt is convinced you can and will take the stock down) and just watch how quickly the craven rats come to the negotiating table and start treating the DAL pilot group with the respect it deserves.
The two key words are: credible threat....the weasels will laugh and scoff at anything less.
06-10-2015, 08:29 PM
#2
Gets Weekends Off
Joined APC: Jul 2013
Position: Wicked Artsy, Moderately Fartsy
Posts: 194
Originally Posted by SayAlt
Lemme tell you what will happen. But first, a little background.
Delta management is largely compensated in stocks and options. This is because being compensated in this way is advantageous from a tax standpoint. However, this leaves mgmt in a very vulnerable position, as anything that causes the stock price to go down hits them right where it matters most to them...in their net worth. And, they cannot just sell all their holdings at one whack, due to myriad SEC rules et al.
It is because mgmt is largely compensated in co. equity that mgmt is so willing to engage in a $5 BILLION stock buyback program, as this directly benefits their equity holdings (mgmt loves to call this "rewarding the co. investors" which, guess what?, includes them!).
The truth is that the DAL pilot group has mgmt by the cajoles. Why? Because the DAL pilot group has the means and opportunity to cause the co. stock price to go down, and down hard. This is mgmt's cajoles...their holy grail.
Credibly threaten the co.'s stock price (read: mgmt is convicted you can and will take the stock down) and just watch how quickly the craven rats come to the negotiating table and start treating the DAL pilot group with the respect it deserves.
The two key words are: credible threat....the weasels will laugh and scoff at anything less.
Delta management is largely compensated in stocks and options. This is because being compensated in this way is advantageous from a tax standpoint. However, this leaves mgmt in a very vulnerable position, as anything that causes the stock price to go down hits them right where it matters most to them...in their net worth. And, they cannot just sell all their holdings at one whack, due to myriad SEC rules et al.
It is because mgmt is largely compensated in co. equity that mgmt is so willing to engage in a $5 BILLION stock buyback program, as this directly benefits their equity holdings (mgmt loves to call this "rewarding the co. investors" which, guess what?, includes them!).
The truth is that the DAL pilot group has mgmt by the cajoles. Why? Because the DAL pilot group has the means and opportunity to cause the co. stock price to go down, and down hard. This is mgmt's cajoles...their holy grail.
Credibly threaten the co.'s stock price (read: mgmt is convicted you can and will take the stock down) and just watch how quickly the craven rats come to the negotiating table and start treating the DAL pilot group with the respect it deserves.
The two key words are: credible threat....the weasels will laugh and scoff at anything less.
06-10-2015, 10:46 PM
#8
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Joined APC: Feb 2008
Posts: 19,273
Originally Posted by Vito
I thought Obama and his ilk are the friends of the working man? Surely they have our backs
06-10-2015, 11:09 PM
#9
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Joined APC: Jul 2013
Position: Wicked Artsy, Moderately Fartsy
Posts: 194
Originally Posted by SayAlt
Two words: pilot shortage
Two more: training backlogs
This is 2015, not the 20th century.
Two more: training backlogs
This is 2015, not the 20th century.
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