On April 20, 2011 these PSP shares will be awarded. Using a $10 share price, if a manager chooses to cash-in his or her shares, the following total bonus value will be realized by approximately 950 AA managers. These managers include AA Flight level 8 or higher managers and level 5 or higher managers outside of AA Flight.
PSP Bonus Value @$10 share price (vest April 20, 2011):
All participating managers..................................$14.3 million
Top 5 Officers..................................................$3.1 million
Arpey.............................................................$1.15 million
Horton...........................................................$540,000
Garton...........................................................$540,000
Reding...........................................................$540,000
Kennedy.........................................................$307,000
On May 20, 2011, management will also receive a deferred shares bonus award. This bonus is not affected by competitor rankings.
Deferred Share Bonus Value @$10 per share:
All participating managers...................................$9.5 million
Top 5 Officers...................................................$1.7 million
In July 2011, management will be awarded Stock Appreciation Rights (SAR), which are similar to options with varying strike prices.
SARs (Options) Value @$10 per share:
All participating managers..................................$11.3 million
Top 5 Officers..................................................$2.9 million
2011 Total Bonus Value @ $10 share price:
All participating managers..................................$35.1 million
Top 5 Officers..................................................$7.6 million
The 2011 management bonus total value (@$10 share price) of $35.1 million will be in addition to the $344 million awarded AA management during the period 2006-2010. As management bonus plans are granted three years in advance, the bonus share totals are known through vesting year 2013. Using a $10 share price assumption, the total value of AA manager bonuses for the period 2011-2013 could reach an additional $226 million.
Source: SEC Filings
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