Kip Powick Posted November 13, 2003 Share Posted November 13, 2003 Milton 'gratified' to be offered bonus http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20031113/RAIR13//?query=air+canada Link to comment Share on other sites More sharing options...
Mitch Cronin Posted November 13, 2003 Share Posted November 13, 2003 ...mmm-hmmm, and aren't we gratified to hear that. It might make some sense.... to someone.... somehow.... but it seems pretty darned obscene to me. ... and I think of the total farce of his giving up 15% of his salary. Good luck Robert. I hope you get rich. ...Filthy, stinking, rich. Really, I do. Link to comment Share on other sites More sharing options...
Guest GDR Posted November 13, 2003 Share Posted November 13, 2003 Hi Mitch You're posts in general have been constructive and with a valid point. I don't think this post meets your own standards. Victor Li, who obviously has more than a few business smarts believes that Robert Milton is the best guy to run this airline. You may not agree with Mr. Li, but it is him that is putting up the money. Mr. Li has chosen that the best way to retain RM is to give him an incentive to stay. Mr. Li has chosen to do that out of his own pocket. He is giving RM shares in the company that he has paid for himself. This will not affect you, other employees, or other shareholders. If Mr Milton becomes filthy rich out of this, are you any worse off? As a matter of fact, if Mr. Milton were to become a billionaire it would mean that the company has done very well which will mean that the employees and shareholders will have benefited as well. You might want to consider again that our future income is dependant on the financial success of the company. The people who understand finances, (which does not include editorialists in the Globe and the Star), seem to believe that Robert Milton is a very capable CEO. At any rate Mitch that’s JMHO. Greg Robinson Link to comment Share on other sites More sharing options...
Guest CDB Posted November 13, 2003 Share Posted November 13, 2003 The full interview with Milty can be read here: http://www.achorizons.ca/en/issues/2003/november/conversation_with_robert_2003-11-12.htm A little snippet: "NH: Part of the commitment from Mr. Li involved a sizeable retention incentive to both you and Calin Rovinescu. By some estimates, it may be worth $20 million or more for each of you. It’s caused quite a bit of talk over the past few days. RM: Yes, it has and I’d like to give it some context. First of all, it’s personally gratifying that the folks at Trinity (and for that matter, Cerberus) made it a condition of their investment that Calin and I stay on to execute the plan that has been developed, and become their partners. If we deliver on the plan over the next four years, and produce the kind of performance and financial results that Mr. Li requires, then he is prepared to give shares to Calin and me from his own holdings in the company, which he will have bought for $650 million. And that $650 million will stay within the company. It doesn’t come to us. In essence, our shares will make us small partners with Mr. Li, and their value will be directly related to how well the company performs. It’s his way of doing business, and is in line with a successful investment philosophy. When the final bids came in last week, and after the Board made its selection on Saturday, we decided to disclose the share grant immediately so there’d be no surprises down the road. NH: You’ve made a point of emphasizing that the one per cent for each of you is coming from Mr. Li’s investment. What difference does it make? RM: What it means is that this is not a cash payment, and it has absolutely no impact on what the creditors will get through this restructuring, nor does it have any impact on the company, or the company’s ability to fund the pension deficit. NH: Will employees also be able to benefit if the company succeeds? RM: Absolutely. It’s not just two executives who will be rewarded if Air Canada succeeds. We will have a profit-sharing plan in place next year for all employees, so people can see tangible benefits from their hard efforts. There will also be a stock option plan to reward certain management employees who are our top performers. If the company succeeds, we will all succeed. It’s a collective effort." Link to comment Share on other sites More sharing options...
Mitch Cronin Posted November 13, 2003 Share Posted November 13, 2003 Greg, I meant it. I hope he does get rich. I just have this little bit of trouble with the hair on the back of my neck when I consider the whole picture of what his reward means, and what's happened to so many people so he could get it. It will undoubtedly depend on your own perspective, how you'd see that, but that's my view. You didn't like how I said it maybe...? How 'bout this way: Dear Robert, I'd like to congratulate you on your successes, and your new found hopes for great personal wealth. You apparently stand to make a great deal of money should AC survive and prosper, and I wish you the best of luck. I'd thought you'd be off to other things as we came out of bankruptcy protection, but obviously I figured wrong... I sincerely hope that in 4 years time we can both revel in the good fortunes a profitable Air Canada has brought us (albeit on somewhat different scales!). Better? Link to comment Share on other sites More sharing options...
Guest GDR Posted November 13, 2003 Share Posted November 13, 2003 Mitch That does have a nicer ring. I thought your first post had a sarcastic and bitter tone to it that I guess you hadn't intended. I believe that Milton has done a good job of navigating us through all the potholes this company and the industry has had to face over the last few years. I believe that between, SARS, the war, the tripling of the cost of crude, the merger, the advent of well run low cost carriers etc that CCAA was inevitable. It would appear to me that we are coming out of CCAA in a very strong position with an busines plan that involves growing the airline. I believe that the many good folks that have been negatively impacted by all of this will eventually recover what they have lost and do well. I hope I'm right. Greg Link to comment Share on other sites More sharing options...
Mitch Cronin Posted November 13, 2003 Share Posted November 13, 2003 Me too Greg. Cheers, M Link to comment Share on other sites More sharing options...
pictues Posted November 13, 2003 Share Posted November 13, 2003 Hey Mitch read the interview on Horizons with RM as it states in there there will be a profit sharing plan started up for all employees next year. Link to comment Share on other sites More sharing options...
UpperDeck Posted November 14, 2003 Share Posted November 14, 2003 Personally....I think its a breach of fiduciary duty becaue....Mr. Li knew that to facilitate acceptance of his offer, "something" had to go to Robt. et al. That is why the share offering was extended and but for his position as Pres., Robt. would not have had the opportunity. The benefit derived is owed to the company. And now...let's look at the GE financing pkge. terms. Link to comment Share on other sites More sharing options...
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