Doug Parker, chairman and CEO of US Airways, made about $9 million this week by exercising options granted years ago, according to a securities filing this week.
The pay perk allowed the airline executive to acquire 272,250 shares of US Airways stock at bargain prices -- between $6.42 and $29.09 a share -- on Aug. 1, and then sell them at much higher prices on the open market -- either $44.46 on Aug. 1 or $43.59 on Aug. 2.
It was the first time Parker sold company stock since joining America West Airlines 11 years ago. He received the options over the years prior to the carrier's merger with US Airways when it exited bankruptcy last September, when the securities were converted to newly issued US Airways stock.
Earlier this year, Parker publicly noted he received no bonus last year and gave up $770,000 in other pay, in deference to workers who conceded more than $2 billion during US Airways' two bankruptcies since 2002. Still, he was paid more than $2.4 million in cash and another $9.2 million in securities and other non-cash compensation.
"Please do not take my option exercises as an indication that I believe US Airways is topping out," said Parker in a message to employees on Friday. He also said he would not exercise any of his remaining stock options this year.
Parker spent $3.04 million this week to acquire the shares then sold them for $12.04 million, documents show.
US Airways reserved $36 million, or 10 percent of pre-tax profit last quarter, for the rank-and-file's annual profit-sharing plan. All 35,200 employees are eligible for a share of however much profit is made in 2006, a year in which Parker projects US Airways will finish in the black.
Copyright 2005 LexisNexis, a division of Reed Elsevier Inc. All rights reserved.
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