AA Management Bonuses

[AMRCostUnit]

These guy have big brass stones...they didn't even wait until we filed Chapter 11. And they want us to give on productivity?

Can't wait for PilotYip to explain to me how much they deserve it...

Unit

*******************************************************

The following appeared on the front page of Saturday’s Sacramento Bee Business Section:
"Big Airline Bonuses"
"Executives at American Airlines are expecting April stock-based bonuses that could top $1 million for some officials because shares of the parent AMR Corp. have risen despite heavy losses at the nation’s largest carrier.
AMR officials declined to estimate the cost of the bonuses. The company said stock options given to rank-and-file workers in 2003, which also vest in April, could top $500 million.
About 1,000 employees from top executives to midlevel managers are expected to receive bonuses under a plan that AMR’s board approved in 2003.
The amount of the bonuses will be based on AMR’s stock price in April. At AMR’s current stock price, they would range from about $2,000 to about
$1.7 million for Daniel P. Garton, the airline’s executive vice president for marketing."

 

[Dangerkitty]

These guy have big brass stones...they didn't even wait until we filed Chapter 11. And they want us to give on productivity?

Can't wait for PilotYip to explain to me how much they deserve it...

Unit

*******************************************************

The following appeared on the front page of Saturday’s Sacramento Bee Business Section:
"Big Airline Bonuses"
"Executives at American Airlines are expecting April stock-based bonuses that could top $1 million for some officials because shares of the parent AMR Corp. have risen despite heavy losses at the nation’s largest carrier.
AMR officials declined to estimate the cost of the bonuses. The company said stock options given to rank-and-file workers in 2003, which also vest in April, could top $500 million.
About 1,000 employees from top executives to midlevel managers are expected to receive bonuses under a plan that AMR’s board approved in 2003.
The amount of the bonuses will be based on AMR’s stock price in April. At AMR’s current stock price, they would range from about $2,000 to about
$1.7 million for Daniel P. Garton, the airline’s executive vice president for marketing."

Have you gotten the e-mail blast from the APA? That idiot Mellerski is actually defending the package?!?!?

 

[pilotyip]

How mislead of them, they should know the pilots could do a much better job of running the airline than any of the guys who have kept AA out of BK.

 

[NAA Pilot]

If you guys give concesions or beleive ANY of that PLI crap, you get what you deserve!

 

[pilotyip]

Again I do not understand correct me if I am wrong. Was the management given stock options? Then they kept the company out of BK, the stock has increased in value because of their efforts, but they deserve no reward for their efforts?

 

[Draginass]

How mislead of them, they should know the pilots could do a much better job of running the airline than any of the guys who have kept AA out of BK.

You mean the same incompetents that . . . .

1. Squandered a couple billion buying TWA assets and 25% too much capacity when the economy was entering recession,
2. Did NOTHING to change the business model when it was obvious that it was broken,
3. Who wouldn't talk to the APA when the APA went to them almost a YEAR before they strapped on their BK suicide vests,
4. Who bald-faced LIED to the unions about top level bonuses and BK protected pensions of the corporate elite,

Arpey has tried some of that Corporate 101 touchy-feely sloganeering to try and placate some of the anger, but trust is not a word that should be associated with ANY manager in corporate America, and much less at ANY airline, and certainly not at AMR.

This latest revelation at AMR just blew any feelings of cooperation. It'd be a lot better to get rid of a lot of the deadweight mercenaries in Centerport.

 

[pipejockey]

Again I do not understand correct me if I am wrong. Was the management given stock options? Then they kept the company out of BK, the stock has increased in value because of their efforts, but they deserve no reward for their efforts?

This is one of the most shocking comments I have read on here!! Did the pilots not keep the company out of bankruptcy by accepting an obnoxious concessionary contract?
The APA should be demanding an immediate 10% raise at the very least, accepting 5% at the very worst. I sure hope none of you guys are working OT.

 

[Dangerkitty]

Again I do not understand correct me if I am wrong. Was the management given stock options? Then they kept the company out of BK, the stock has increased in value because of their efforts, but they deserve no reward for their efforts?

This is one of the most uninformed/uneducated statements that I have ever read.

Do a little homework there pilotyip. The management did nothing to keep the company out of BK it was the pilots, FA's and ground workers who took MASSIVE pay cuts that helped keep AA out of BK.

Now the company is asking for more concessions and then paying the execs bonuses. BS pure BS.

Furthermore the stock price has only risen due to pure speculation. Nothing more. AMR has only had one profitable quarter since 9/11 and it was a small one at that. The company is still deeply in debt and still in alot of trouble.

If anything the management of this company has only squandered the concessions given to them by labor.

 

[pilotyip]

pipejock and dangercat, I was asking a question. I did not see an answer in your response. Yes the pilots took pay cuts, because it appeared better than any of the alternatives proposed. Management came up with a plan, that is their job. American as reported in AW&ST last year was the only legacy to have a plan and a goal to survive in the LLC world that was actually making progress toward that goal. The AA's plan was to reduce the employees per airplane to match that of profitable LLC's. It looks like management is doing a good job. The good ole days of the legacy airlines are long gone, and anyone who thinks they are coming back is out of touch with reality. An AA Captain’s seat is still a fantastic job, making $165K per year working 17 days per month. This is still a great career for those who like to fly and are grounded in reality. Could you two do a better job?, if so you should get into managment and make what your deserve for saving airlines.

 

[pilotyip]

Repeat, but it fits here

This is a pilot board so saying anything in defense of management is like peeing into the wind, that it is going to come back to you. CEO's are not intentionally running airlines into the ground. They would very much like to succeed. For lack of other reason it would make their resume look great, they would be doing something no other CEO had ever done. Top management includes many besides the CEO, the CEO sets direction as requested by the board. The CEO has little control over the airline, the airline is run by regulation and union contracts. They are at the mercy of the purchasing public, who with Internet access has made the airline ticket a perfectly elastic commodity. There is little they can do inside their structure. Other high paid top management personnel, in Operations, Maintenance. Marketing, Legal, Finance, etc. have unique skills in dealing with large organizations. This makes them marketable when shopping for a job, unlike pilots whose skills are nearly universal. An issue of ATW in the last year had an article about “Airline Management a dying breed”, the article basically said no one wants to do it. The good track record CEO’s are going to other industries. With tremendous, payrolls, overhead burdens, and extremely low margins, there is no tried and true path to success. Most have tried to increase market share, but this has lead to low price and ridiculous breakeven load factors in 95% range. What is management supposed to do? Eliminating management will bring the end quicker for the airplane industry, and their salaries are insignificant to the airlines operating costs. Without management you could not operate the airline, The FAA would shut it down without approved Part 119 key management. Would the pilots step up and become management for free in their spare time. Why is every time, pilot salaries come up, they are immediately compared to top management. I saw an article in ATW in the past couple years that stated at DAL there were 17 members of top management made more than the top DAL Captain. The combined top 17 salaries equaled less than 1/6 of 1% of the combined pilot salaries. If management worked for free all pilots in the company would get a 1/10 of 1% raise. (for a $100K per year pilot that would be $3/wk increase in take home) Boy that raise would really make the pilot group happy. Top management possesses skills that allow them to move from job to job and command high salaries. And every one of these managers wants to see his/her airline prosper. They just can not do it.