Equity in the new company??
 

One can possibly expect to receive equity in the new company, such as Delta/NWA.... I know this has been discussed here, but I can't find the threads... What was the average equity pay out to the DL/NW pilots? Was it put into their B plans, or paid cash? Did they get it immediately, or was there a wait period? Was the pay out based on earnings, longevity, seat/category?

Just curious what the DL/NW pilots experience was, and if that is what the UAL/CAL pilots should expect?? more, less, the same? Any ideas?

Thanks, GB

As far as the topic, this is something that CAL's MEC Chair has been preaching from the start as far as that being one of the "Corner Stones" in any type of 'successful' merger for 'his' pilot's.

Can't speak specifically on anything thing that Wendy has said on the UAL side, but I would guess that she would be along the same lines for her pilot's as well.

Outside of that, I have not a clue as far as numbers in the DAL/NWA Marriage.....good question though. Hopefully some of the DAL guys/gals stop by to weigh-in on the topic.

Average was about 4000 shares per pilot placed in the 401K plan. It was distributed based on seniority number, with the most senior pilot receiving 4581 shares and the most junior pilot receiving 3358 shares. Total shares received was 49.5 million, or just under 6% of the company. There was a waiting period (more than 5% held by a single entity, ALPA). The rest of the employee groups received about 4% of the company equity. Management also sucked up 4%.

As to the UAL/CAL experience, you'll get what you negotiate and the shareowners approve as part of a merger deal. Equity comes straight out of the common shareholder value, so it will be a tough negotiation.

Hope this helps.

Furloughed DL pilots who bypassed recall ALSO received equity. I know several personally so I can verify. Hope our merger is the same.

Hope we get a better deal than DL/NW.

KC

Thanks, sloplay!! What was cash value? 4000(what stock price? around 10/share?) We had a similar thing happen at UA with BK exit/equity and they filled 403Bs up for 2 years, leaving an estimated buffer of what your B and C contribution would be... so essentially you couldn't contribute the 16K per year for two years (good thing :) ).... Did you get a retro check, as well, for the JCBA? If so, was it a 100 percent back to the amendable date?

Thanks for sharing your experience, I appreciate it!

No retro at all, and as far as I remember the stock did go towards the 403b limit (I don't make enough to come anywhere close to the limit, some guys did reach it early though).