I’m just gonna repost this quote from Gary Kelly that has already been posted on APC. It bears repeating and reiterating:
Quote:
The terms of the government loan are pretty onerous ... And I think what's near and dear to shareholders' hearts are restrictions on dividends, which I object to, and share repurchases. I object to that as well. We're not paying dividends and buying back shares now, but obviously we'd like to have that flexibility in the future.
The SWAPA virtual meeting yesterday said that the total amount of money the company would save from pilots taking a 10% pay cut is just over $200M. But $7.5 BILLION in government loans were available until a few weeks ago. The quote above explains why Gary Kelly turned the government loan down. If he had only taken $500M of the $7.5 BILLION that he turned down to protect bankers and his buddies, he would have more than covered a 10% pay cut for all employees.
But, INVESTMENT BANKERS AND EXECUTIVE PAYOUTS ARE MORE IMPORTANT THAN EMPLOYEES AT SWA. Yes, I shouted that because it can’t be forgotten.
Finally, I think most of us realize this, but Gary Kelly’s not taking a salary for all of 2021 is no sacrifice. SWAPA explained that last year Kelly earned just shy of $800K in salary as SWA CEO, but earned approximately $8M in stock-based income. He’ll still be earning his stock income in 2021. Also, SWAPA stated that his compensation package includes a pledge to make him whole for situations where he loses salary, like him “giving up” his salary next year. He’s gonna be made whole. He’s not losing that salary.