Business History Books » Business Plans » Strike costs Air Canada brass.
Strike costs Air Canada brass.
Question:
March 23,1999 Strike costs Air Canada brass. CEO’s pay packet cut by nearly half, 4 others affected. By Lisa Wright Toronto Star Business Reporter Air Canada pilots are getting the last laugh after their 13-day strike last fall translated into no annual bonuses for the top brass. Executives at Canada’s largest airline lost much more than frustrated customers from last September’s labour dispute, according to the company’s management proxy circular, mailed out to shareholders this week. Chief executive Lamar Durrett in particular paid the price for the company’s $16 million net loss last year, which cut his over-all pay packet by almost half to $606,250 in straight salary. … (snip) … … * * * Pilots, performance, executives bonuses, plans, shares and more. Very interesting/good article. For full text: (Cut & Copy) www.thestar.com/back_issues/ED19990323/money/990323BUS01_FI-AIR23.html
Response:
> March 23,1999 > Strike costs Air Canada brass. > CEO’s pay packet cut by nearly half, 4 others affected.
Maybe that’s what he means when Lamar Durett’s report in the glossy annual report before me begins "Hugely disappointing – not something we plan to repeat." It goes on: "From a high of $14.95 in January, our share price plummeted to $6.15 at year-end. That’s obviously unacceptable." Interestingly, according to the Dec. 31/98 balance sheet, AC had a book value of Shareholders’ Equity of $1,457,000,000. A $6.15 share price would translate into a market value of approx. $800MM. Does this mean AC has negative goodwill of $857MM or does it mean that it’s a hell of a buy for someone who can figure out a way around the 15% ownership rule?