9844
Topic Author
Posts: 194
Joined: Fri Nov 16, 2001 12:36 am

UAL Bankrupcy Costs......Bonuses?

Tue Jan 18, 2005 5:35 am

http://www.chicagotribune.com/business/chi-0501160416jan16,1,7150003.story?coll=chi-business-hed&ctrack=1&cset=true

I don't get it....Bonuses for upper mgmt.lawyers taking hundreds of millions...maybe I do get it....united taken to the wood shed.
 
NWAFA
Posts: 1843
Joined: Wed Dec 31, 2003 10:30 pm

RE: UAL Bankrupcy Costs......Bonuses?

Tue Jan 18, 2005 5:37 am

As discussed before, UA is abusing the Bk process like crazy!
THANK YOU FOR FLYING NORTHWEST AIRLINES, WE TRULY APPRECIATE YOUR BUSINESS!
 
ssides
Posts: 3248
Joined: Fri Feb 09, 2001 12:57 am

RE: UAL Bankrupcy Costs......Bonuses?

Tue Jan 18, 2005 8:20 am

With respect to attorney's fees, I'm a little biased being a lawyer, but let me tell you, the only firms capable of handling bankruptcies of this magnitude are large nationwide and multinational firms -- and they charge a lot. Their bills have to be approved by the bankruptcy court, but they will still be huge.

Think about what the bankruptcy lawyers have to do: prepare and file the original filing, maintain contacts with ALL creditors and ensure that the appropriate people get the appropriate priority, ensure that no creditor is harassing United, etc. etc. etc. It's a big job.

I'm not saying their bills are 100% justified. In the Enron case, a firm had its bill whacked by a third -- from something like $60 million to $40 million (the firm lost $20 million in the blink of an eye). But it's not unheard of for these things to get expensive. Sure, some people are getting rich here, but what are the lawyers supposed to do -- work for free?

"Lose" is not spelled with two o's!!!!
 
rparker537
Posts: 41
Joined: Thu Sep 16, 2004 12:45 pm

RE: UAL Bankrupcy Costs......Bonuses?

Tue Jan 18, 2005 10:07 am

While front-line employees may not realize (believe?) it, specialized skills are also needed in the back-office to run an airline. They are getting bonuses so they don't leave. Without good management types, an airline will simply collapse. THese employees often have advanced degrees, and simply the demand for their talents is higher than the supply.

Interesting that the groups without the unions are getting paid to stay...Another drawback of unions - because you're locked into seniority systems, there is no need to give "staying" bonuses to good employees.
 
PVG
Posts: 461
Joined: Wed Dec 01, 2004 7:39 pm

RE: UAL Bankruptcy Costs......Bonuses?

Tue Jan 18, 2005 11:28 am

I often find that people with advanced degrees in a normal business environment are over-rated and over-paid. Just because someone has a good memory and can get through school doesn't mean that they are any good in a practical situation. It really depends on the individual and their experience. Someone with maybe less education but alot of practical experience is often more valuable. The only place where having an advanced degree means anything are in technical and/or medical professions. I think that the retainer bonuses in bankruptcy cases are just a good excuse for the executives to make sure that they get theirs in the end.
 
UALPHLCS
Posts: 3233
Joined: Thu Jun 28, 2001 5:50 am

RE: UAL Bankrupcy Costs......Bonuses?

Wed Jan 19, 2005 12:00 am

What this is all about is UA's Success Sharing plan.

Every employee is entitled to it. I even will get a check because I wasn't laid off until after the 4Q was over. UA has been doing this for over a year now I don't know why anyone has thier panties in a bunch now.

There is a profit sharing componant to the plan as well that for obvious reasons has not kicked in. But it is the same idea that Co did during thier Chapter 11 emergence. Companies have to attract and retain good employees. If too many think that the pay cuts are not worht it then they begin a brain drain and the company is then in worse shape, without the talent needed to pull out.

The Unions agreed to the plan and to the porportions skewed in favor of higher salaried employees. This wasn't an issue a year ago, it wouldn't be an issue if the industry had turned around like we thought it would, why make an issue of it now.

It's just lazy reporting on the Tribune's part. Slow news, day so let's dig up something old about "Coroprate greed."
A little less Hooah, and a little more Dooah.
 
ssides
Posts: 3248
Joined: Fri Feb 09, 2001 12:57 am

RE: UAL Bankrupcy Costs......Bonuses?

Wed Jan 19, 2005 1:23 am

Just because someone has a good memory and can get through school doesn't mean that they are any good in a practical situation. It really depends on the individual and their experience. Someone with maybe less education but alot of practical experience is often more valuable. The only place where having an advanced degree means anything are in technical and/or medical professions.

You're right in some areas, but when it comes to high finance for enormous enterprises, pricing decisions, and things of that nature, a high level of formal education is required.
"Lose" is not spelled with two o's!!!!

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