When I considered all the facts of Allied's bankruptcy case, I ultimately concluded that a 15% reduction in my wages and the elimination of my KERP bonus were necessary and appropriate to support our Company and its employees.
My KERP bonus must not be an issue as our Teamster drivers, mechanics and yard personnel consider the difficult sacrifices that will be necessary to help Allied survive and avoid the threat of liquidation.
As previously reported, given the expense impact of recent increases in the stock price and possible further expenses if such increases in the stock price were to continue, FLOW terminated its KERP
in February 2006 by accelerating the payout of the retention awards.
The KERP provides for three types of payments: retention payments, incentive payments and variable payments.
The retention payment applies to all 143 retained employees in the KERP.
But, we will also challenge decisions when they demonstrate the kind of poor judgment shown in the filing of this KERP