Report: Spirit Airlines CEO Given $3.8 Million Retention Bonus Before Bankruptcy Filing
Carl Juste/Miami Herald/Tribune News Service via Getty Images
Spirit Airlines CEO reportedly got a huge retention bonus just days before the airline, which has been facing numerous issues, declared bankruptcy.
CEO Ted Christie’s apparent $3.8 million bonus came after the company said it planned to cut some jobs and sell some of its planes, the New York Post reported on Thursday.
According to the article, Christie, who will be able to keep the bonus is he stays with the company for another year, lives in a $2.5 million home in Fort Lauderdale, Florida, which features a private swimming pool and covered porch.
“Christie and his wife, Theresa, paid $1.2 million for the three-bedroom, three-bathroom home in 2012,” the article said.
The airline’s stock recently dropped 59 percent as it considered filing for bankruptcy protection, according to a UPI article published in November 13.
“Spirit Airlines closed at $1.31 a share, down from $1.91. Spirit stock, with the ticker symbol SAVE, has dropped more than 90% this year,” the report said.
The carrier announced Monday it had filed for Chapter 11 bankruptcy, making it the first U.S. carrier to do so since American Airlines did more than ten years ago, UPI reported:
Spirit has faced mounting problems starting with the COVID-19 pandemic including a surge in costs, an airplane engine recall, and its high-profile failure to merge with JetBlue Airways.
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Spirit also promised that the bankruptcy filing would not affect its workers, their wages or benefits, or work as usual. It also said vendors and leaseholders would continue to be paid.
The airline has said it will continue operations amid the bankruptcy filing as the holiday travel season approaches, WKMG reported on Monday.
A reporter for the outlet said travelers may see disruptions, cancellations, and time changes, but “it won’t be a mass, hey, one day Spirit was there the next day they’re not”:
“They’re not going out of business. Spirit Airlines is the seventh largest airline in the United States, I think 22nd overall in the world, so they’re not going out of business any time soon,” he added.
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