WestJet Rewards - WestJet's earnings slide 63 pct, shares drop

http://www.reuters.com/article/idUSN0425861020100504?type=marketsNews

TORONTO, May 4 (Reuters) - WestJet Airlines Ltd (WJA.TO) reported a 63 percent drop in first-quarter profit on Tuesday, citing travelers' sensitivity to prices, but the low-cost carrier said there are signs it is on track for a stronger second quarter.

WestJet, Canada's second-biggest airline, earned C$13.8 million ($13.5 million), or 10 Canadian cents a share, in the quarter, down from C$37.4 million, or 29 Canadian cents, a year earlier.

Excluding a charge related to the resignation of former Chief Executive Sean Durfy, the company earned C$17.5 million, or 12 Canadian cents a share.

http://www.reuters.com/article/idUSN0425861020100504?type=marketsNews

TORONTO, May 4 (Reuters) - WestJet Airlines Ltd (WJA.TO) reported a 63 percent drop in first-quarter profit on Tuesday, citing travelers' sensitivity to prices, but the low-cost carrier said there are signs it is on track for a stronger second quarter.

WestJet, Canada's second-biggest airline, earned C$13.8 million ($13.5 million), or 10 Canadian cents a share, in the quarter, down from C$37.4 million, or 29 Canadian cents, a year earlier.

Excluding a charge related to the resignation of former Chief Executive Sean Durfy, the company earned C$17.5 million, or 12 Canadian cents a share.

Hmm, last paragraph should read "Excluding a C$4.1 million charge related to the departure of former Chief Executive Sean Durfy".

Doesn't sound like someone who went willingly to me.

Hmm, last paragraph should read "Excluding a C$4.1 million charge related to the departure of former Chief Executive Sean Durfy".

Doesn't sound like someone who went willingly to me.

No, this is normal for a CEO departure.

No, this is normal for a CEO departure.
+1

The departing executive normally has from 30 days to 90 days to exercise the purchase of vested options from previous years, together with the cashing-in of restricted share units. These items will hit the corporate books at the share strike price when they are exercised. For Durf's payout, it is likely his gain is a lot less than $4.1m (which will reflect the strike price of a lot of share options), as the gain will only be in the range of $1 to $5 per share for shares that are in the money and issued over the past 4 years or so.