A new video from Teamsters Strategic Research Department Director Iain Gold breaks down TWU’s equity stake distribution plan, calculating that TWU is withholding $16.7 million of our equity to cover administrative costs associated with distributing the equity. Gold, who has been involved in the establishment of a number of equity plans in the past 18 years, says TWU’s 5% holdback is an enormous amount of money to cover such expenses. The Teamsters, on the other hand, make sure the company pays for equity distribution so members get as much money as possible.
“Doing the math, the 5 percent holdback would retain – on the high side based on a maximum share price of $15.07 – $19.4 million,” Gold says in the video. “Using the 23 million shares and $14.50 share price figures in the latest TWU explanation, the 5 percent holdback would result in a $16.7 million dollar pot.” As Gold explains, this large amount of money provides no incentive for firms and advisors setting up the distribution to keep costs down.
The Teamsters don’t take money from their members in equity stake plans – they make the company pay for distribution costs. At Global Aviation and YRC Freight, that’s exactly what the Teamsters did. The money came out of management’s pocket, not from workers.
WATCH THE VIDEO and share it with coworkers at your stations.
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For more information, visit the AA Mechanics for Teamsters website or call the hotline at 877-589-4951.