I don't think what AA sought from the RPA has been questioned as much as what happened afterward.
If "shared sacrifice" were truly the goal, then AA's senior management & board of directors would have eaten their own dog food with regard to the PSP & PUP plans. Yes, it was contractual, but there was nothing stopping Gerard or any other officer from voluntarily waiving their payouts. Had the top officers at AMR, who were still quite generously compensated, waived their payouts, there would have been no question about how genuinely committed they were to the idea of shared sacrifice. And I think that it would have trickled pretty far down once the precedent was set.
But they didn't waive. They cashed in the stock awards like pigs at the trough.
For me, it was quite an insult. I'd put my own reputation and credibility on the line explaining to my employees why they had to take pay cuts averaging 14-18%.
And in one motion, me and thousands of other front line supervisors & managers were left to twist in the wind, and look like liars to our employees.
Yet senior management, even though it was variable comp, had the appearance of being made whole. I get the whole concept of VC, but it should be done on operational or financial measures.
If the company is going to claim they can't pay out higher wages because of the cost issues, then they shouldn't be basing the PUP/PSP plan on another metric like relative stock performance....
That's why people are pissed off about it, Josh. Senior management didn't eat their own dog food. And I don't know how they're ever going to recover from that one, simple action.