How do you cut wages below min. wage??? lift opps make 8/hour, and no drug testing, bellmen make 5.50/hour, etc, looks like they'll have to recruit more drug addicts to run the show! The great employees will go work at macdonalds or burger king for 20% better pay. Customer service is gonna get real shitty, as unhappy employees leave.
Absurdity seems to compound itself. If you listen to the conference call, you will note that they spend a great deal of it talking about how bad business is and likely not to get better, clever butt covering. And the stock goes up. Their business has fallen off a cliff. The idea that consumer bargain travel will replace non existent corporate travel over the summer is ridiculous. No analyst who wanted to ask the right questions was recognized on the call i.e. are those real estate gains for real, what is your actual cash position and burn rate. Trust fund babies seldom care about anyone else. Why should they? Their whole lives have been in the stratosphere looking down on how the rest of us cretins live. The mere idea that employees should take a pay cut funded by illiquid stock (I suggest copious amounts of salt, pepper, ketchup and cyanide) is morally and ethically offensive. I don't know who theses guys think they're fooling, but I do think the market will figure it out. Remember, a lot of this stock is held in fiduciary hands-if this were you, would you continue to own it?
Philip; You lack the art of understanding EXPECTATIONS. 1) The company is smart to under promise and overdeliver 2) They have been so good at the above, that their guidlance range is way above what consensus was at. I am not sure if you get it by $200m EBITDA annually in the depression 2.0 is a huge amount of money of a stock with an EV of less than a $1bn. I meam what happens if the economy actually improves a few years from now? I personally don't want any employees at MTN who don't understand the awesome value of stock and don't want to be an owner. Almost every business is cutting wages right now, and most of those are not giving stock!
It will be interesting to see the employee reaction to the wage reduction/stock incentive package. There has always been a HUGE difference is the wage structure between the hourly staff and the managerial level staff. Totally out of skew but that has been the industry standard. What the executive level doesn't understand is the amount of cash needed for the basics to survive in their relatively expensive locations. Once the take home is less than this survival amount the "seasonal ski/snowboard worker" vanishes. Will they be paying some hourly workers less than the base unemployment rate?