Proxy Fight at UAL BOD
03-09-2016, 09:45 PM
#41
Banned
Joined APC: Jun 2008
Position: A320 Cap
Posts: 2,282
This is a short term view and an incorrect correlating of events. Munoz did not move us forward. Smisek was holding us back like a gorilla sitting on a puppy. Once he was gone a huge five-year weight was lifted, the employees could breath again, and they started moving back to their natural state of enthusiasm for working at a possibly great airline. That Munoz was out of commission the entire time that the numbers were improving shows that even an empty block at the top of the org chart was better than one with Smisek's name in it.
Bethune is a pilot if nothing else--he wants to make the most money with the least work. With Smisek gone, CEO success over the next couple of years will be like taking candy from a baby. Bethune can sidle in, watch us rise while he yuks it up, take credit and leave with another $50m. In fact, someone has told me he's already written his new book, "From Flailing to Flying."
Bethune is a pilot if nothing else--he wants to make the most money with the least work. With Smisek gone, CEO success over the next couple of years will be like taking candy from a baby. Bethune can sidle in, watch us rise while he yuks it up, take credit and leave with another $50m. In fact, someone has told me he's already written his new book, "From Flailing to Flying."
While I can appreciate your assessment, I've seen enough CEO's at this company to know that ABS (anybody but Smisek) isn't good enough. It's still way too early to determine what Oscar's legacy may be, but the change in morale in the last 6 months is palpable. We will see if it continues on that vector.
What I DO know is the #1 thing these hedge funds are concerned about is short term shareholder value. That worries me. Deeply.
03-10-2016, 02:39 AM
#42
Gets Weekends Off
Joined APC: Oct 2010
Posts: 2,639
The short term goals and objectives of these two hedge funds are far different than the situation when TPG gained control of CAL and installed Bethune and Brenneman.
I'm mildly surprised that Bethune is even nvolved with this. On the other hand I'm not.
03-10-2016, 04:08 AM
#44
Gets Weekends Off
Joined APC: Nov 2012
Posts: 1,085
I didn't write it.... merely passing it on because I thought it was interesting coming from our FA's.
While I can appreciate your assessment, I've seen enough CEO's at this company to know that ABS (anybody but Smisek) isn't good enough. It's still way too early to determine what Oscar's legacy may be, but the change in morale in the last 6 months is palpable. We will see if it continues on that vector.
What I DO know is the #1 thing these hedge funds are concerned about is short term shareholder value. That worries me. Deeply.
While I can appreciate your assessment, I've seen enough CEO's at this company to know that ABS (anybody but Smisek) isn't good enough. It's still way too early to determine what Oscar's legacy may be, but the change in morale in the last 6 months is palpable. We will see if it continues on that vector.
What I DO know is the #1 thing these hedge funds are concerned about is short term shareholder value. That worries me. Deeply.
Last edited by CousinEddie; 03-10-2016 at 04:22 AM.
03-10-2016, 05:47 AM
#46
Banned
Joined APC: Jun 2008
Position: A320 Cap
Posts: 2,282
ALPA Speaks
“United's pilots have grave concerns about the sudden attempt by two activist investors to gain effective control of United’s Board of Directors. This coup attempt, being done for their own benefit and without publicly stating their intentions for the future of the airline, unnecessarily distracts all employees from our commitment to improve customer service and grow United Airlines.
“Through the sacrifice of pay and benefits of over $10 billion, the United pilots helped save the Company in its darkest days. United Airlines is now on stable ground and making record profits while investing in its employees, aircraft and facilities. We are concerned that these activists will instigate a program focusing on short term gains to the detriment of United’s customers and employees. Our returning CEO, Mr. Munoz, has renewed hope in our pilots through his genuine belief in our product and our people. The pilots of United Airlines share his vision and fully support Mr. Munoz. We will work with him to reestablish United Airlines as the industry leader.”
“United's pilots have grave concerns about the sudden attempt by two activist investors to gain effective control of United’s Board of Directors. This coup attempt, being done for their own benefit and without publicly stating their intentions for the future of the airline, unnecessarily distracts all employees from our commitment to improve customer service and grow United Airlines.
“Through the sacrifice of pay and benefits of over $10 billion, the United pilots helped save the Company in its darkest days. United Airlines is now on stable ground and making record profits while investing in its employees, aircraft and facilities. We are concerned that these activists will instigate a program focusing on short term gains to the detriment of United’s customers and employees. Our returning CEO, Mr. Munoz, has renewed hope in our pilots through his genuine belief in our product and our people. The pilots of United Airlines share his vision and fully support Mr. Munoz. We will work with him to reestablish United Airlines as the industry leader.”
03-10-2016, 09:57 AM
#47
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
The people that Altimeter/PAR Capital want on the United board are crap. Maybe a couple of decent ones, but four of the six are total crap.
Here's the list:
Besides Bethune, the other people Altimeter and PAR want to add to the board include Altimeter Capital's Gerstner, former Orbitz Worldwide (OWW) CEO Barney Harford, former Delphi Automotive (DLPH) CEO Rodney O'Neal, SherpaFoundry CEO Tina Sharkey and the head of strategic initiatives at homebuilder Lennar (LEN), Brenda Yester Baty.
My opinion (worth nothing
):
Gordon Bethune - Anyone who states that FLIBS was fired for no reason in the middle of the night is completely incompetent and has no place on United's BOD. Gordo stated that in the CNBC interview.
Brad Gerstner - He's a hedgie. And a really crappy one at that. More than 1/3 of Altimeter Capital's holdings are United stock. Two stocks, United and Expedia, represent more than half of Altimeter's holdings. For that reason alone, I'd love to see United's stock get halved. 13F Manager Holdings - Altimeter Capital Management, LLC
I hope that a$$hat's hedge fund blows up.
Barney Harford - former CEO of Orbitz until he was able to sell Orbitz to Expedia in 2015. Took over in early 2009; stock's performance was nothing special compared to the rest of the stock market (it's a low hurdle to take over a public company in early 2009 at the bottom of the market and have the stock price rise a bit). He looks like one of those people who polish turds and then sell them.
Rodney O'Neal - Didn't look at his background; probably the most qualified of the six.
Tina Sharkey - reading her history reminded me of Al Gore 'inventing' the internet. Looked like a whole lot of overstating her past. Claimed to be a cofounder of iVillage (a failed internet company from the late 90s that was never profitable) but she was simply hired there, working for the cofounders.
Claims to have invented the term, 'social media'. LOL! Forbes Welcome I'd put the origin of that somewhere within AOL.
Checkered history of hopping between companies every couple of years, no company looks like it was successful.
Brenda Yester Baty - not much information out there on her. Used to do revenue management for Carnival Cruise Lines, moved over to Lennar Homes. From this article, it looks like she implemented six fare categories at Carnival only to backtrack a year later and return to three fare categories: Carnival Cruise Lines Simplifies Pricing - Carnival Cruise Lines - Cruise Critic
Lord help us if these idiots get on United's BOD. I'd rather just burn the place down so that Altimeter and PAR lose their investments.
Here's the list:
Besides Bethune, the other people Altimeter and PAR want to add to the board include Altimeter Capital's Gerstner, former Orbitz Worldwide (OWW) CEO Barney Harford, former Delphi Automotive (DLPH) CEO Rodney O'Neal, SherpaFoundry CEO Tina Sharkey and the head of strategic initiatives at homebuilder Lennar (LEN), Brenda Yester Baty.
My opinion (worth nothing
):Gordon Bethune - Anyone who states that FLIBS was fired for no reason in the middle of the night is completely incompetent and has no place on United's BOD. Gordo stated that in the CNBC interview.
Brad Gerstner - He's a hedgie. And a really crappy one at that. More than 1/3 of Altimeter Capital's holdings are United stock. Two stocks, United and Expedia, represent more than half of Altimeter's holdings. For that reason alone, I'd love to see United's stock get halved. 13F Manager Holdings - Altimeter Capital Management, LLC
I hope that a$$hat's hedge fund blows up.
Barney Harford - former CEO of Orbitz until he was able to sell Orbitz to Expedia in 2015. Took over in early 2009; stock's performance was nothing special compared to the rest of the stock market (it's a low hurdle to take over a public company in early 2009 at the bottom of the market and have the stock price rise a bit). He looks like one of those people who polish turds and then sell them.
Rodney O'Neal - Didn't look at his background; probably the most qualified of the six.
Tina Sharkey - reading her history reminded me of Al Gore 'inventing' the internet. Looked like a whole lot of overstating her past. Claimed to be a cofounder of iVillage (a failed internet company from the late 90s that was never profitable) but she was simply hired there, working for the cofounders.
Claims to have invented the term, 'social media'. LOL! Forbes Welcome I'd put the origin of that somewhere within AOL.
Checkered history of hopping between companies every couple of years, no company looks like it was successful.
Brenda Yester Baty - not much information out there on her. Used to do revenue management for Carnival Cruise Lines, moved over to Lennar Homes. From this article, it looks like she implemented six fare categories at Carnival only to backtrack a year later and return to three fare categories: Carnival Cruise Lines Simplifies Pricing - Carnival Cruise Lines - Cruise Critic
Lord help us if these idiots get on United's BOD. I'd rather just burn the place down so that Altimeter and PAR lose their investments.
03-10-2016, 12:25 PM
#49
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
... by the way, after taking a look at O'Neal's 'leadership' history, I find all six completely unqualified for seats on the BOD.
03-10-2016, 07:02 PM
#50
Don't say Guppy
Joined APC: Dec 2010
Position: Guppy driver
Posts: 1,926
Lets see, UAL stock is near it's recent historical high in market Cap, and these guys go all in on United stock. Also we have our best 3 months, operationally, in what, a decade or two? Now they want to take control?
They should rename their hedge fund "Bad Timing Capitol Management".
They should rename their hedge fund "Bad Timing Capitol Management".
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