As AirTran lost money, CEO got $1.5 million

Eagle757shark

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As AirTran lost money, CEO got $1.5 million

By KELLY YAMANOUCHI
The Atlanta Journal-Constitution
Friday, April 03, 2009
AirTran Airways paid its chief executive $1.5 million in compensation for 2008, as the company lost a record amount of money for the year.
AirTran CEO Bob Fornaro’s $500,000 salary was about 16 percent higher last year than in 2007. He was promoted from president and chief operating officer to the airline’s top position in November 2007. Orlando-based AirTran has its largest hub in Atlanta.
After AirTran lost $273.8 million in 2008, its largest annual loss in the company’s history, Fornaro took home a $375,000 bonus. That amounted to 50 percent of Fornaro’s potential award. Fifty percent of the potential bonus was based on profitability, 20 percent on cost control and 30 percent on individual performance.
Fornaro’s 2007 bonus was $545,000. His total 2008 compensation, which also included $526,200 in stock awards and $120,086 in other compensation, was roughly the same amount that Fornaro got in 2007.
AirTran, which tried to cut employee pay last year but was unable to get unions to agree to the move, said officers have not seen an increase in their base pay this year while other AirTran employees have.
The company disclosed the compensation information in its proxy filing to the U.S. Securities and Exchange Commission in advance of its annual meeting in Orlando on May 20. At the meeting, shareholders will vote on a revised long-term incentive plan, among other proposals.
AirTran plans to increase the number of shares for the long-term incentive plan to 6 million, extend the term of the plan to 2019 and change other terms. The company is shifting its long-term equity incentives from time-vesting awards of restricted stock to stock awards based on performance.
 

Eagle757shark

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AirTran pilots wake up. As of March 24, 2009 under investor relations and earnings estimates on AirTran.com, AirTran is estimating a $105 million dollar profit for all of 2009. Meanwhile they continue to ask this pilot group to take a 12.5% paycut. They continue to shred through the current CBA and suspend a pilot for taking his family to the circus in uniform. AirTran pilots what are you worth? Remember you are vested in this company!
 

Ih8AFYesmen

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As $hit like this continue and as the rich get richer, poor get poorer and the middle class becomes the endangered species, I can partially take comfort to the fact that when we meet our maker, we will ALL be judged by the most righteous standards. Yes, that means you too, Mr. CEO (or fill in the blank).
 

Nindiri

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Shouldn't Hugh's Johnson be on the Regional board?
 

Murphy

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I'm just going to start mailing Bob 12% of my wife's paycheck every month because he obviously needs it. Unfortunately, 12% of nothing is........


0000000000000000000000000000000000000000
 

turbodriver

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As $hit like this continue and as the rich get richer, poor get poorer and the middle class becomes the endangered species, I can partially take comfort to the fact that when we meet our maker, we will ALL be judged by the most righteous standards. Yes, that means you too, Mr. CEO (or fill in the blank).
You got what you voted for eight years ago didn't you? So sleep in that bed you made....
 

dispatchguy

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You expected something different from management???
 

maxblast72

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If anybody has an issue with Bob's pay, isn't it the Board of Directors that either approve/disapprove Bob's pay package? CEOs just try for the most they can get from the BOD, just like unions try to get the most from management that they can get.

The issue is how cozy the BOD and CEOs are at alot of companies nowadays in the US.
 

Eagle757shark

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I have issue with the pilots in this industry devaluing themselves. I have a problem with AirTran asking for the pilots to take a 12.5% paycut. Contract negotiations have been going on for 4 1/2 years. This is way too long. The RLA is a joke and allows this junk to continue because management will not negotiate in good faith.
The one thing that scares me are the guys in our ranks that will accept poor work rules and limited scope just to receive a few extra dollars in hourly pay.
 
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rajflyboy

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273 - 105 = 168 million dollar loss over a 2 year period if your expected profit turns out to be true??

Not good. Not good at all.
 
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