Monday, February 16, 2009
Parsing PR's BS, Part 2...
The Eagle finally published the "Spirit Execs Doctoring Performance Numbers For A Bigger Bonus" story last Thursday. What I found fascinating in this report is the statement that...
Other groups of workers, who are part of other bargaining groups, have a profit-sharing plan that pays according to an earnings calculation before earnings and taxes. It's not yet known whether the payout will be triggered, [Spirit spokesman Ken] Evans said. That will be determined sometime in the first quarter, but he did not know when.
While Ken may not yet be able to figure out whether or not the unions' "EBIT greater than 12%" payout trigger occurred, it sure seems to me like the bottom of Table 4 on Page 8 of the Company's "Fourth Quarter and Full-Year 2008 Financial Results" report indicates company-wide Operating Earnings of only 10.8% for the year, well below the 12% trigger the Execs require from us for a payout.
-- Bill, who wonders if they change PR folks as often as they change their bonus targets...
Comments:
WorkerUnit ... Keep ranting ...How about PR BS part 3 albeit delayed
The corporate federal filing on Jan 6 outlined changes in the agreements between Turner and Schmidt for not paying them correctly ... and assuming all financial responsibility for those mispayments
Form 8-K for SPIRIT AEROSYSTEMS HOLDINGS, INC.
6-Jan-2009
Change in Directors or Principal Officers, Financial Statements
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
(e) On December 31, 2008, Spirit AeroSystems, Inc., a wholly-owned subsidiary of Spirit AeroSystems Holding, Inc. (the "Company"), entered into amendments to its employment agreements with Jeffrey Turner and Ulrich Schmidt, the Company's Chief Executive Officer and Chief Financial Officer, respectively. The reason for the amendments was to bring the employment agreements into compliance with final regulations under Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A"), that are effective January 1, 2009, by clarifying the timing of payment of certain compensatory elements contained in the employment agreements, providing interest on such compensation the payment of which is required to be delayed under Section 409A, prohibiting the liquidation or exchange of such payments for other benefits, and prohibiting the acceleration of benefits considered to be deferred compensation within the meaning of
Section 409A. The amendments also provide for indemnification of Mr. Turner and Mr. Schmidt for any taxes, penalties, or interest that may be assessed against them by the failure to satisfy Section 409A due to an alleged deficiency in the form of the employment agreement or the Company's failure to follow the terms of the employment agreement, inclusive of any taxes owed with respect to such indemnification, unless the assessment is due to the failure by Mr. Turner or Mr. Schmidt to agree to modifications to the employment agreements or to take other necessary actions.
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The corporate federal filing on Jan 6 outlined changes in the agreements between Turner and Schmidt for not paying them correctly ... and assuming all financial responsibility for those mispayments
Form 8-K for SPIRIT AEROSYSTEMS HOLDINGS, INC.
6-Jan-2009
Change in Directors or Principal Officers, Financial Statements
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
(e) On December 31, 2008, Spirit AeroSystems, Inc., a wholly-owned subsidiary of Spirit AeroSystems Holding, Inc. (the "Company"), entered into amendments to its employment agreements with Jeffrey Turner and Ulrich Schmidt, the Company's Chief Executive Officer and Chief Financial Officer, respectively. The reason for the amendments was to bring the employment agreements into compliance with final regulations under Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A"), that are effective January 1, 2009, by clarifying the timing of payment of certain compensatory elements contained in the employment agreements, providing interest on such compensation the payment of which is required to be delayed under Section 409A, prohibiting the liquidation or exchange of such payments for other benefits, and prohibiting the acceleration of benefits considered to be deferred compensation within the meaning of
Section 409A. The amendments also provide for indemnification of Mr. Turner and Mr. Schmidt for any taxes, penalties, or interest that may be assessed against them by the failure to satisfy Section 409A due to an alleged deficiency in the form of the employment agreement or the Company's failure to follow the terms of the employment agreement, inclusive of any taxes owed with respect to such indemnification, unless the assessment is due to the failure by Mr. Turner or Mr. Schmidt to agree to modifications to the employment agreements or to take other necessary actions.
# posted by 
: 5:35 AM
: 5:35 AM