Why is there a watermelon there?
American Airlines Execs are FIRST class scumbags!!
Good LORD!!! The company is facing bankruptcy, you've just asked all your underlings to take massive paycuts, and you try and foist a comp plan which would give you a solid raise and bonus' which total in the tens of millions? At least the system worked this time, and the fact that they had to disclose the plan to the SEC meant that those Unions who had agreed to take the cuts could tell those Execs where to stick it. For a change the Union reps with American were actually doing the right thing, and the Airline execs tried to screw them. I'd be in favor of a law which requires that before ANY taxpayer aid can be given to any company that is in trouble, the execs of that company must be made to take a pay cut which is at least 150% that of any pay cut their employees are asked to take. Capitalism means survival of the fittest, not "lets pay ourselves as much as possible before the company completely goes to hell"
"Executive compensation plans spark outcry
The airline revealed in a Securities and Exchange Commission filing Tuesday that was reported in the Wall Street Journal Thursday that its top six executives are in line for retention bonuses equal to twice their base salary if they stay with American through January 2005. A seventh officer was due 1.5 times his base pay.
It also revealed that a supplemental pension program for its top paid executives had been funded for the first time in order to protect those benefits in case of a bankruptcy filing.
After initially defending both plans, late Friday afternoon Carty announced that he and the other top officers had given up their retention bonuses.
"I have apologized to our union leaders for this and for the concern it has caused our employees," Carty said. "Those executives who have made the personal commitment to remain with American during this financial crisis, myself included, are not here solely for monetary reasons and we have all agreed to give up these retention payments in order to give our employees confidence in management's on-going commitment to shared sacrifice."
But Carty said the funding of the supplemental pension plan for these officers and other top paid executives would remain in place despite the union objections.
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APFA and other union officials said Friday that the American had done damage to the trust of employees with its attempt to set up the compensation plans.
"No doubt, this cancellation is only a result of the fact that they were caught with their hands in the cookie jar," said a statement from APFA President Ward to his members late Friday. "