Dave Is Gone!!!!

[RubberNeck]

ARLINGTON, Va., April 19 /PRNewswire-FirstCall/ -- The US Airways Group, Inc. (Nasdaq: UAIR - News) Board of Directors today announced the resignation of President and Chief Executive Officer David N. Siegel, effective immediately.
ADVERTISEMENT


The company said board member Bruce Lakefield, chairman of the board's finance and strategy committee and human resources committee, has been named chief executive.

Siegel said in a statement that his decision to exercise his contractual right to resign was "in the best interests of the company, as management seeks to secure the necessary changes to make the airline competitive."

Siegel joined the airline in March 2002 as chief executive and board member and took the company into bankruptcy protection six months later.

 

[scoreboard]

Did he take the parachute?

Did he cut, run with the money??

 

[DornierPilot]

No wonder the employees didn't trust him

I can't believe that he stood there with a straight face and said "I'm not leaving in April and taking the money."

If he takes it, he's a cad.

 

[chperplt]

If he takes it, he's a cad.

If he takes it, the shareholders should file legal action.

 

[Heavy Set]

Not a confidence inspiring move... Sure, he's taking the money and running because he can see the ship taking on too much water...

As far as I am concerned, Siegel is not the only person to blame - what about WOLF???? How many millions did that guy bolt with?

 

[Rez O. Lewshun]

As far as I am concerned, Siegel is not the only person to blame - what about WOLF???? How many millions did that guy bolt with?

At USAIR or United or both?

 

[Swaayze]

Regardless of appearances this was a necessary step if U is to survive.

Hopefully Mr. Lakefield will figure out how to run an airline, 'cause it sure didn't seem like Dave had any clue.

He sure did the Al Dunlap thing well though. It's worth the $$ just to have some hope for a halfway reasonable management team in place.

 

[Floyd94]

At USAIR or United or both?

Don't forget about Rakesh!

 

[General Lee]

Did he take that $4.5 million he was promised in his contract? It is funny how management contracts can never be challenged---only labor's.

Bye Bye--General Lee

 

[350DRIVER]

Did he take that $4.5 million he was promised in his contract? It is funny how management contracts can never be challenged---only labor's.

I would only assume he took the cash and ran right out the back door. . . The big U is in a world of hurt, interesting times ahead for sure.


3 5 0

 

[MW44]

I'm sure any announcement that Dave took the 4.5 mill will make it hard for the new guy to get a dime more in concessions.

 

[General Lee]

Leo took $16 million. Our CFO--Michele Burns---will be taking her "retention" bonus --$1.3 million---in three installments. (she was nice enough to do that...over three years...she obviously thinks we will be still around in 3 years)

Bye Bye--General Lee

 

[Publishers]

fat lady,

the fat lady may not be singing but she is in the wings warming up her voice.

Let me ask this fine group, you have seen that things are not going real well, the changes that you implemented, while staving off Chapter 7, have not put the carrier on track, you do not know whether survival is likely, and, you have a contract that says you can take your agreed on monies and leave now.

What would you do?

Furthermore you can make a big deal of the fact he said he would stay, but, reality is that a departing CEO can never state that until all things are in place and they actually do leave.

 

[doh]

Pubs,
It doesn't change the fact that he lied to the employees. It doesn't change the fact that managers take money they did NOT earn and that should stay to help bolster the bottom line. It does show that management is mostly made up of unscupulous people who are out for themselves and not representing the "best interests of the shareholders" like they are always telling us!

 

[Emerson Bigguns]

integrity.....

DornierPilot: I can't believe that he stood there with a straight face and said "I'm not leaving in April and taking the money."

With this, it is no wonder there is so much distrust and animosity in the industry. Where are the people that have the stones to be honest with their people? Aren't CEOs hired to be "leaders" of the company.

 

[halfmoon]

I hate to say this. Do you think Lakefield is CEO now to oversee liquidation. Take a look at his background. Wallstreet, banker, new to the airlines, old as heck(new dynamic ideas?not)
IS he here to protect what the banks own?

 

[Publishers]

Reality

There are several realities that you responses show that are the reason that there is and always will be that distrust.

First in April, he might not have thought he was going to go. Circumstances might have changed including the support level of the board. In short, he might have seen since April a diminishing amount of support from that board.

Second, as a CEO, you can not ever say that you are leaving because you become a lame duck ceo. You tell the board and give them time to line up a replacement. This is especially critical in a company on the verge of closure.

Thirdly, you indicate that he did not earn it. Well that is your opinion but another way to look at it is that he earned it the day he was hired. This level executive says -- this is what I want to come to your company. After all he was taking over an Albatross. They agreed so I believe it was earned.

Lastly, you are right about him representing the shareholders. That very reason is why you do not prematurely let out that you are leaving. A sudden resignation or lame duck presidentcy would not have been in the interest of the shareholders.

 

[blahshmah]

Re: Reality

Thirdly, you indicate that he did not earn it. Well that is your opinion but another way to look at it is that he earned it the day he was hired. This level executive says -- this is what I want to come to your company. After all he was taking over an Albatross. They agreed so I believe it was earned.

Are you kidding me? If he was able to turn USAir around he would have EARNED it. He didn't earn anything except distrust and hatred.

Second, as a CEO, you can not ever say that you are leaving because you become a lame duck ceo. You tell the board and give them time to line up a replacement. This is especially critical in a company on the verge of closure.

Fine but he shouldn't have said he was staying. He said it which makes him a liar. Overall his actions make him a weasel.

 

[Publishers]

thread

As the article posted in the other thread indicated, he accomplished much but came up short in dealing with the culturer and repositioning the airline for the future from a marketing perspective.

What I was saying is that you will never agree because his behaviour was not to your liking. OK, we can live with that.

It was not like he was not accomplished coming in nor that the board did not recognize the immensity of the task.

If you are in a perfectly fine position and someone calls you up and says, heh, we got this dog of a situation here and we think you might be the guy to fix it. You say OK, if I pull it off, I want stock options that make me wealthy. If I don't, I want X for even coming over and trying. That is a simple contract.

Now I am not trying to defend the guy. Just pointing out that perhaps he meant to stay and the board said you need to take your pay and leave. It might not have been his decision. If it was so be it. If you asked him before and he said that, he still had no choice but top lie about it.

Only on the Titanic does the captain go down with the ship.

 

[SWA GUY]

Guys...I'm afraid Pubs is correct in his points.

USAir recruited Seagull, and told him that they'd pay him X-amount to try to resolve their problems.
If he could get the airline running in the black, then he'd get more money.

These packages are agreed upon before anyone takes the reigns.

I'm not for or against Seagull, just callin 'em as I see 'em.