ALPA
Gentlemen, I have been an airline pilot for 36 years. About 10 years ago, I discovered ALPA isn't looking out for our profession. It is a big business and is only interested in the status quo. I have included this document which shows ALPA executive compensation. This is where your dues are going. I would recommend any organizatio other then ALPA.
AIR LINE PILOTS ASSOCIATION, INTERNATIONAL
39TH REGULAR BOARD OF DIRECTORS MEETING
October 21-25, 2002
SUBJECT
National Officer Compensation and Expense Allowance
SOURCE
Constitutional Requirement
Distribution authorized by: _______________________________
Delegate Committee Chairman
DELEGATE COMMITTEE RECOMMENDATION
RESOLUTION #1
PRESIDENTIAL COMPENSATION
WHEREAS the 1970 Board of Directors adopted a policy of a fixed formula for calculating Presidential compensation which has been continued since that date with modifications and additions deemed appropriate by the Board of Directors in 1974, 1978, 1982, 1986, 1990, 1994 and 1998,
THEREFORE BE IT RESOLVED that the Board of Directors policy on Presidential compensation be reaffirmed with the following modifications. The allowances and allocations described herein shall take effect on January 1, 2003 in accordance with the following:
A. DIRECT COMPENSATION
Presidential compensation based upon the average book rates of the three highest paying Captain rates of the three highest paying ALPA carriers, on the opening day of each regular Board of Directors meeting, 1/2 day plus 1/2 night, average maximum contract hours for the applicable rates shall be as follows:
Effective January 1, 2003:
(1)
(a) Total Maximum Annual Gross Yield *
$295,816
($298.19/hr at 82.67 hours per month)
(b) Plus, if applicable, a Monthly Adjustment to provide the minimum pay equal to the highest paying equipment the President is entitled to hold in accordance with his system seniority on his airline
$0
Subtotal
$295,816
* To be recalculated upon any change in the Captain hourly rates or maximum contract hours for the three highest paying ALPA carriers
(2)
Presidential Override at 26% of (1)
$76,912
Total Base Compensation
$372,728
(3)
National Officer Service Allowance in 2003*
$40,000
Total of Presidential Compensation and National Officer Service Allowance
$412,728
* Refer to paragraph C for National Officer Service Allowance provisions after 2003.
(4)
In the event the Presidential compensation in A(1) is less than Flight Pay Loss calculated for officer compensation for the offices of First Vice President, Vice President-Administration/ Secretary, or Vice President-Finance/ Treasurer the higher amount shall be used for line A(1) of the Presidential compensation calculation above.
B. PENSION AND FRINGE BENEFITS
1. The President shall be eligible to participate and entitled to receive, in addition to Total Base Compensation, benefits from any pension, medical, disability or other welfare plan of benefits sponsored by ALPA or provided to ALPA bargaining unit or non-bargaining unit staff as the Vice President-Finance/Treasurer shall determine, provided further that the Vice President-Finance/Treasurer, at his or her discretion, in coordination with the 401K plan, for each calendar year or portion thereof that the President has served in office, shall provide for a single premium annuity commencing at age 55 or termination of office, whichever is later, providing a benefit equal to 5% for each such year, up to a maximum of 60%, applied to the Total Base Compensation as computed in paragraph A above.
2. Should the sum of retirement benefits from the air carrier and ALPA result in the President's retirement being less than that he or she would have received at his or her own airline had he or she not served as President, the Executive Board will adjust the retirement benefit accordingly.
C. NATIONAL OFFICER SERVICE ALLOWANCE
The President shall receive a National Officer Service Allowance of $40,000 annually effective January 1, 2003. Beginning in 2004, the annual National Officer Service Allowance shall be increased by an amount equal to the rate of growth in the Consumer Price Index (CPI-U) in the preceding year times the Allowance in the previous year. This allowance, together with all costs associated with the ALPA-provided automobile, shall be reported to federal, state, and local authorities as taxable income and shall be made available to the President in such manner as the President may request. The National Officer Service Allowance shall be considered as provision for reimbursement of extraordinary expenses, both personal and business, associated with service in an ALPA National Officer position and shall not be subject to specific accountability by the President.
RESOLUTION #2
FIRST VICE PRESIDENT, VICE PRESIDENT-ADMINISTRATION/
SECRETARY, AND VICE PRESIDENT-FINANCE/TREASURER COMPENSATION
WHEREAS the Board of Directors, in 1970, adopted a policy of reimbursement for Flight Pay Loss and expenses plus an allowance for the First Vice President, Vice President-Administration/Secretary and Vice President-Finance/Treasurer, and
WHEREAS said policy has been reaffirmed and continued by the Board of Directors in 1974, 1978, 1982, 1986, 1990, 1994 and 1998, and
WHEREAS certain modifications to this policy are deemed appropriate by the 2002 Board of Directors,
THEREFORE BE IT RESOLVED that compensation for the First Vice President, the Vice President-Administration/Secretary, and the Vice President-Finance/Treasurer shall take effect on January 1, 2003 in accordance with the following:
A. DIRECT COMPENSATION
1. The policy of reimbursement for Flight Pay Loss shall be continued as basic compensation for the office of First Vice President, Vice President-Administration/Secretary, and Vice President-Finance/Treasurer, who shall be compensated at the rate of the highest paying equipment each is entitled to hold in accordance with his or her system seniority on his or her airline.
2. Flight Pay Loss shall be fixed at the maximum allowable flight time per month, 1/2 day - 1/2 night.
B. MINIMUM DIRECT COMPENSATION
1. No officer elected to any of the three above named offices shall receive less than a minimum of $11,200 per month as basic compensation, not including allowances.
2. Subject to paragraph B.3. below, in no event (other than the officer's voluntary election to change his or her airline status) shall the total of Flight Pay Loss or basic compensation be less than the amount the officer is receiving as of January 1, 2003.
3. An Incumbent First Vice-President, Vice-President Administration/Secretary, or Vice-President Finance/Treasurer who becomes a Retired Member during his or her term of office and remains in office for the remainder of his or her term under the provisions of Article XI, Section 1. A, Article XII, Section 1. A, or Article XIII, Section 1. A of the Constitution and By-Laws, as applicable, shall receive compensation while in Retired status for the remainder of his or her term equal to the difference between what the officer earned, on average, during the six months immediately preceding becoming a Retired Member and the airline funded retirement income he or she is entitled to receive.
4. The First Vice-President, Vice President-Administration/
Secretary, and Vice President-Finance/Treasurer shall not be eligible to participate in nor are they entitled to receive benefits from any pension, medical, disability or other welfare plan of benefits provided to ALPA bargaining unit or non-bargaining unit staff.
5. The Executive Council shall resolve any question of interpretation or application of these compensation and benefit provisions to an individual officer, including, as appropriate, the acquisition of benefits, other than ALPA employee benefits, for an officer who becomes a Retired Member during his or her term in office and remains in office for the remainder of his or her term under the provisions of Article XI, Section 1.A, Article XII, Section 1.A, or Article XIII, Section 1.A of the Constitution and By-Laws.
C. NATIONAL OFFICER SERVICE ALLOWANCE
Each officer shall be granted a National Officer Service Allowance as follows:
EFFECTIVE DATE 1/1/03
For the First Vice President
$40,000
For the Vice President-Administration/Secretary
$40,000
For the Vice President-Finance/Treasurer
$40,000
Gentlemen, I have been an airline pilot for 36 years. About 10 years ago, I discovered ALPA isn't looking out for our profession. It is a big business and is only interested in the status quo. I have included this document which shows ALPA executive compensation. This is where your dues are going. I would recommend any organizatio other then ALPA.
AIR LINE PILOTS ASSOCIATION, INTERNATIONAL
39TH REGULAR BOARD OF DIRECTORS MEETING
October 21-25, 2002
SUBJECT
National Officer Compensation and Expense Allowance
SOURCE
Constitutional Requirement
Distribution authorized by: _______________________________
Delegate Committee Chairman
DELEGATE COMMITTEE RECOMMENDATION
RESOLUTION #1
PRESIDENTIAL COMPENSATION
WHEREAS the 1970 Board of Directors adopted a policy of a fixed formula for calculating Presidential compensation which has been continued since that date with modifications and additions deemed appropriate by the Board of Directors in 1974, 1978, 1982, 1986, 1990, 1994 and 1998,
THEREFORE BE IT RESOLVED that the Board of Directors policy on Presidential compensation be reaffirmed with the following modifications. The allowances and allocations described herein shall take effect on January 1, 2003 in accordance with the following:
A. DIRECT COMPENSATION
Presidential compensation based upon the average book rates of the three highest paying Captain rates of the three highest paying ALPA carriers, on the opening day of each regular Board of Directors meeting, 1/2 day plus 1/2 night, average maximum contract hours for the applicable rates shall be as follows:
Effective January 1, 2003:
(1)
(a) Total Maximum Annual Gross Yield *
$295,816
($298.19/hr at 82.67 hours per month)
(b) Plus, if applicable, a Monthly Adjustment to provide the minimum pay equal to the highest paying equipment the President is entitled to hold in accordance with his system seniority on his airline
$0
Subtotal
$295,816
* To be recalculated upon any change in the Captain hourly rates or maximum contract hours for the three highest paying ALPA carriers
(2)
Presidential Override at 26% of (1)
$76,912
Total Base Compensation
$372,728
(3)
National Officer Service Allowance in 2003*
$40,000
Total of Presidential Compensation and National Officer Service Allowance
$412,728
* Refer to paragraph C for National Officer Service Allowance provisions after 2003.
(4)
In the event the Presidential compensation in A(1) is less than Flight Pay Loss calculated for officer compensation for the offices of First Vice President, Vice President-Administration/ Secretary, or Vice President-Finance/ Treasurer the higher amount shall be used for line A(1) of the Presidential compensation calculation above.
B. PENSION AND FRINGE BENEFITS
1. The President shall be eligible to participate and entitled to receive, in addition to Total Base Compensation, benefits from any pension, medical, disability or other welfare plan of benefits sponsored by ALPA or provided to ALPA bargaining unit or non-bargaining unit staff as the Vice President-Finance/Treasurer shall determine, provided further that the Vice President-Finance/Treasurer, at his or her discretion, in coordination with the 401K plan, for each calendar year or portion thereof that the President has served in office, shall provide for a single premium annuity commencing at age 55 or termination of office, whichever is later, providing a benefit equal to 5% for each such year, up to a maximum of 60%, applied to the Total Base Compensation as computed in paragraph A above.
2. Should the sum of retirement benefits from the air carrier and ALPA result in the President's retirement being less than that he or she would have received at his or her own airline had he or she not served as President, the Executive Board will adjust the retirement benefit accordingly.
C. NATIONAL OFFICER SERVICE ALLOWANCE
The President shall receive a National Officer Service Allowance of $40,000 annually effective January 1, 2003. Beginning in 2004, the annual National Officer Service Allowance shall be increased by an amount equal to the rate of growth in the Consumer Price Index (CPI-U) in the preceding year times the Allowance in the previous year. This allowance, together with all costs associated with the ALPA-provided automobile, shall be reported to federal, state, and local authorities as taxable income and shall be made available to the President in such manner as the President may request. The National Officer Service Allowance shall be considered as provision for reimbursement of extraordinary expenses, both personal and business, associated with service in an ALPA National Officer position and shall not be subject to specific accountability by the President.
RESOLUTION #2
FIRST VICE PRESIDENT, VICE PRESIDENT-ADMINISTRATION/
SECRETARY, AND VICE PRESIDENT-FINANCE/TREASURER COMPENSATION
WHEREAS the Board of Directors, in 1970, adopted a policy of reimbursement for Flight Pay Loss and expenses plus an allowance for the First Vice President, Vice President-Administration/Secretary and Vice President-Finance/Treasurer, and
WHEREAS said policy has been reaffirmed and continued by the Board of Directors in 1974, 1978, 1982, 1986, 1990, 1994 and 1998, and
WHEREAS certain modifications to this policy are deemed appropriate by the 2002 Board of Directors,
THEREFORE BE IT RESOLVED that compensation for the First Vice President, the Vice President-Administration/Secretary, and the Vice President-Finance/Treasurer shall take effect on January 1, 2003 in accordance with the following:
A. DIRECT COMPENSATION
1. The policy of reimbursement for Flight Pay Loss shall be continued as basic compensation for the office of First Vice President, Vice President-Administration/Secretary, and Vice President-Finance/Treasurer, who shall be compensated at the rate of the highest paying equipment each is entitled to hold in accordance with his or her system seniority on his or her airline.
2. Flight Pay Loss shall be fixed at the maximum allowable flight time per month, 1/2 day - 1/2 night.
B. MINIMUM DIRECT COMPENSATION
1. No officer elected to any of the three above named offices shall receive less than a minimum of $11,200 per month as basic compensation, not including allowances.
2. Subject to paragraph B.3. below, in no event (other than the officer's voluntary election to change his or her airline status) shall the total of Flight Pay Loss or basic compensation be less than the amount the officer is receiving as of January 1, 2003.
3. An Incumbent First Vice-President, Vice-President Administration/Secretary, or Vice-President Finance/Treasurer who becomes a Retired Member during his or her term of office and remains in office for the remainder of his or her term under the provisions of Article XI, Section 1. A, Article XII, Section 1. A, or Article XIII, Section 1. A of the Constitution and By-Laws, as applicable, shall receive compensation while in Retired status for the remainder of his or her term equal to the difference between what the officer earned, on average, during the six months immediately preceding becoming a Retired Member and the airline funded retirement income he or she is entitled to receive.
4. The First Vice-President, Vice President-Administration/
Secretary, and Vice President-Finance/Treasurer shall not be eligible to participate in nor are they entitled to receive benefits from any pension, medical, disability or other welfare plan of benefits provided to ALPA bargaining unit or non-bargaining unit staff.
5. The Executive Council shall resolve any question of interpretation or application of these compensation and benefit provisions to an individual officer, including, as appropriate, the acquisition of benefits, other than ALPA employee benefits, for an officer who becomes a Retired Member during his or her term in office and remains in office for the remainder of his or her term under the provisions of Article XI, Section 1.A, Article XII, Section 1.A, or Article XIII, Section 1.A of the Constitution and By-Laws.
C. NATIONAL OFFICER SERVICE ALLOWANCE
Each officer shall be granted a National Officer Service Allowance as follows:
EFFECTIVE DATE 1/1/03
For the First Vice President
$40,000
For the Vice President-Administration/Secretary
$40,000
For the Vice President-Finance/Treasurer
$40,000