Like other US Airways investors, new American chief executive Doug Parker saw a change in his stock portfolio on Monday when his US Airways stock was replaced with shares of American Airlines.
And with the closing stock price on Monday of $24.60, Parker owns shares and stock rights in the new company worth about $64 million. That doesn't include the restricted stock award he received from the new board of directors that is currently worth $15 million but won't vest for a couple of years.
Parker currently owns 933,320 shares of American worth about $22.9 million. He also owns stock appreciation rights that are worth about $41 million that were awarded to him while he was CEO of US Airways.
He also has 210,000 shares of stock appreciation rights that are currently worthless since the exercise price is higher than American's current share value. He also has 309,375 stock options with a strike price of $20.97 and $25.60.
If the stock of American continues to rise, Parker's American stock portfolio could be worth even more. Of course, if the stock goes down, it will be worth less.
Parker has typically not sold shares of the airline he is currently running. He did sell shares worth $843,747 to cover taxes from restricted stock awards he received earlier this year. But prior to that transaction, Parker had not sold his airline stock or exercised options since 2006.
In 2006, he exercised and sold 272,250 shares of US Airways for $12 million. In a letter sent to US Airways employees, Parker explained his decision to make exercise options for the first time in 11 years.
"A small portion of these options were granted almost ten years ago and are about to expire, which means that if they aren't exercised, they simply go away," Parker wrote, saying the options were granted to him while he was running America West Airlines. "That, along with the feeling I should diversify my stock holdings, is the primary reason that I have chosen to exercise some options now."