American Airlines chief executive Doug Parker gained $9.47 million from a stock sale he made last week.
Parker sold off 231,060 shares that were stock appreciation rights, which are similar to stock options, that he was awarded in 2007 while he was chief executive of US Airways. The stock rights were set to expire on April 14 if he did not sell them by that date.
According to a government filing made on Friday, Parker sold the shares at prices ranging from $47.8863 to $48.73. The stock rights were priced at $7.42 a share. Of the $9.47 million, about $4 million worth of stock was sold to pay the taxes Parker will owe for the sale.
“Doug remains a large [American Airlines] shareholder and remains very positive about the future of American. Throughout his time as CEO at US Airways and now at American, the only times he has sold shares is when options were about to expire in the near future,” the carrier said in a memo to employees about the stock sale.
Following the sale, Parker still owns 1.5 million shares of American stock [ticker: AAL] that is worth about $71.96 million based on Friday’s closing price of $46.69. Parker may sell another 90,000 stock appreciation rights that expire in April, the memo said.
In 2015 and 2016, Parker sold off hundreds of thousands of stock appreciation rights that were set to expire. With the monthly sales, he gained $42.4 million. Currently, Parker does not earn a salary as chief executive of the Fort Worth-based carrier and instead earns most of his executive compensation from stock awards.