Controllers and holding airline stock

caprisun

Member
Messages
26
Hello all,

So here is my situation. My husband is an airline pilot, and his company offers an employee stock purchase program that he’d like to participate in. I remember signing something at one point saying something to the effect of I would not own any airline stock, including family members. I work at a small level 5 that does not have any commercial traffic, just corporate and GA. I’m curious what others opinion on this is, can he still not participate in this?
 

Maintainvfr

Forum Sage
Messages
430
Hello all,

So here is my situation. My husband is an airline pilot, and his company offers an employee stock purchase program that he’d like to participate in. I remember signing something at one point saying something to the effect of I would not own any airline stock, including family members. I work at a small level 5 that does not have any commercial traffic, just corporate and GA. I’m curious what others opinion on this is, can he still not participate in this?
It's not really an opinion thing, it specifically says your spouse can't own stock in any of the prohibited companies. I think there's a way to request an exemption, but I've never done it so I'm not sure how or who or what form.

Food for thought, the only ones that actually have to disclose their financial investments are members of management :whistle:
 

vectorwagon

Trusted Contributor
Messages
142
I get the purpose of it but it’s hilarious to me, if I have a shit ton of swa stock and hate American with a passion but it’s easier and better to put aa in front of swa I don’t give a shit about stocks, I do what makes my life and potentially coworkers also easier, and stick aa in front
 

Termine

Active Member
Messages
84
Conventional wisdom is that the "safe" option with an ESPP is to sell it as soon as you can anyway—your money is better off in an index fund.

Do what your career can handle, etc, etc.
 

caprisun

Member
Messages
26
Conventional wisdom is that the "safe" option with an ESPP is to sell it as soon as you can anyway—your money is better off in an index fund.

Do what your career can handle, etc, etc.
Thanks for the fast replies from everyone. I wholeheartedly agree and in the past he has sold immediately, so the amount of time he holds the stock is literally 1-2 days. Also agree about the index funds, he has that going too.

Foogy, does the exemption just need to start with my fac rep?
 

Maintainvfr

Forum Sage
Messages
430
I get the purpose of it but it’s hilarious to me, if I have a shit ton of swa stock and hate American with a passion but it’s easier and better to put aa in front of swa I don’t give a shit about stocks, I do what makes my life and potentially coworkers also easier, and stick aa in front
For sure, and I always felt like having a spouse as a pilot would give me more bias than owning stock would
 

PushingTin

Forum Sage
Messages
804
This thread is way better than the "what's the worst mistake most dangerous thing
you've ever saw another controller do" Kobe Bryant paparazzi thread!

Buy BOEing, it is almost impossible for it not to rebound after the 737MAX fiasco is in the rear view. As a duopoly w Airbus, they're the only game in town and the stock has nowhere to go but up! Just dont post about it on message boards if you arent sposed to



home-design-1.jpg
 

FightingIrish2012

Forum Sage
Messages
496
I legit was about to buy some Boeing after the MAX issues as it is simply a company that is too big to fail and was guaranteed to give you a great return. Then I remembered that we are excluded from purchasing that, it is too bad, it would have been a good investment.
 

Foogy

Forum Sage
Messages
902
Thanks for the fast replies from everyone. I wholeheartedly agree and in the past he has sold immediately, so the amount of time he holds the stock is literally 1-2 days. Also agree about the index funds, he has that going too.

Foogy, does the exemption just need to start with my fac rep?
I imagine the facrep wouldn't be a bad place to start, you're really just looking for the individual who is closest to you as a designated ethical counselor or official. The FacRep may have that information for a counselor.

For officials look at the bottom of this page Ethics | US Department of Transportation
 

CF

plz like my posts
I ♥ pointSixtyFive
Messages
567
I wouldn’t recommend owning any airline stock at the moment. The bottom isn’t in sight for them.
 

Alpha_bravo2

Trusted Contributor
FAA
Messages
195
Facility
PNS Pensacola Tower
They give you a list that has like 30 airlines that don’t exist anymore.
That list isn't all inclusive, but this is one of those do what your career can handle type things.

Here's some light reading on the subject.


(b) Federal Aviation Administration (FAA). Except as provided in paragraphs (c) and (d) of this section, no FAA employee, or spouse or minor child of the employee, may hold stock or have any other securities interest in an airline or aircraft manufacturing company, or in a supplier of components or parts to an airline or aircraft manufacturing company.
(c) Exception. The prohibitions in paragraphs (a)(1) and (b) of this section do not apply to a financial interest in a publicly traded or publicly available investment fund, provided that, at the time of the employee's appointment or upon initial investment in the fund, whichever occurs later, the fund does not have invested, or indicate in its prospectus the intent to invest more than 30 percent of its assets in a particular transportation or geographic sector and the employee neither exercises control nor has the ability to exercise control over the financial interests held in the fund.
(d) Waiver. An agency designee may grant a written waiver from the prohibition contained in paragraph (b) of this section, based on a determination that the waiver is not inconsistent with 5 CFR part 2635 or otherwise prohibited by law, and that, under the particular circumstances, application of the prohibition is not necessary to avoid the appearance of misuse of position or loss of impartiality, or otherwise to ensure confidence in the impartiality and objectivity with which FAA programs are administered. A waiver under this paragraph may be accompanied by appropriate conditions, such as requiring execution of a written statement of disqualification. Notwithstanding the granting of any waiver, an employee remains subject to the disqualification requirements of 5 CFR 2635.402 and 2635.502.
(e) Period to divest. An individual subject to this section who acquires a financial interest subject to this section, as a result of gift, inheritance, or marriage, shall divest the interest within a period set by the agency designee. Until divestiture, the disqualification requirements of 5 CFR 2635.402 and 2635.502 remain in effect.
 
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