Afl-cio Targets 'derelict' Ceo Compensation Cmtte.

[WingNaPrayer]

AFL-CIO Targets 'Derelict' CEO Compensation Committee Directors In New Executive Paywatch Website Highlighting Excessive CEO Pay www.paywatch.org



WASHINGTON, April 15 /PRNewswire/ -- Many executive pay packages rose dramatically over the last year as a result of compensation committee directors who approved excessive deals despite CEOs' poor performance and declines in share prices. But shareholders are increasingly withholding votes from so-called "derelict" directors to send a message that overly generous pay packages must stop. To help restore accountability to the executive compensation system, the AFL-CIO has launched on its newly updated Executive Paywatch website, www.paywatch.org, a vote "no" campaign targeting "derelict" directors at 10 companies where CEOs received over-the-top pay packages.

"We are urging shareholders to take a proactive approach in stopping runaway CEO pay dead in its tracks," said AFL-CIO Secretary-Treasurer Richard Trumka. "Irresponsible directors must be removed to rein in excessive CEO pay that ultimately robs working families of their retirement security."

The AFL-CIO is urging shareholders to withhold support from the following directors for approving excessive executive pay: Michael Miles of American Airlines (NYSE: AMR); William Campbell of Apple Computer (Nasdaq: AAPL); Myra Biblowit of Cendant (NYSE: CD); Carol Bartz of Cisco Systems (Nasdaq: CSCO); Richard Parsons of Citigroup (NYSE: C); John Williams of Clear Channel Communications (NYSE: CCU); Decker Anstrom of Comcast (Nasdaq: CMCSA); Robert Spilman of Dominion Resources (NYSE: D); William Tauscher of Safeway (NYSE: SWY) and Bradley Jacobs of United Rentals (NYSE: URI).

The AFL-CIO's Executive Paywatch website profiles case studies of each of these directors and the CEO pay decisions made under their watch. For example, at Dominion Resources, CEO Thomas Capps' total compensation increased 160 percent in 2003, even though the company's net income fell by 77 percent. Capps has had an interlocking directorship with compensation committee director Robert Spilman, the former CEO of Bassett Furniture where Capps served on his board in 1997.

In the coming year, two proposed reforms will have a major impact on CEO compensation: The Securities and Exchange Commission is considering allowing shareholders to nominate directors for election on company proxy statements. Secondly, the Financial Accounting Standards Board has issued a proposed standard that would require companies to begin expensing stock options next year.

Executive Paywatch is also launching an e-campaign to support stock option expensing. Executives disproportionately benefit from stock options and this cost has been kept off the books. Moreover, not expensing stock options has artificially boosted profit reports, thereby generating further increases in CEO pay. Visitors to www.paywatch.org will be encouraged to send a letter to regulators and lawmakers urging that all stock options be expensed.

"While some companies have begun to restructure their executive compensation system in the wake of corporate scandals, others have only engaged in window dressing," said Trumka. "Moreover, some of these reforms were only adopted after shareholders demanded change."

 

[woztwa]

this is an excellent web site-thanx, Wing....

 

[flyhigh]

...I like the mis-information you provide wing. AMR at top of list as if to say it was the worst. Take a look at the list you posted:
American Airlines
Apple Computers
Cendant
Cisco Systems
Citigroup
Clear Channel Communications
Comcast
Dominion Resources
Safeway
United Rentals

10 bonus points to the genius who can understand why American Airlines is listed before the others.

 

[WingNaPrayer]

...I like the mis-information you provide wing.

It's not my story buddy. Had I have written it, AMR would have taken a punch in the mouth!

 

[Oneflyer]

WingNaPrayer. Why are you so angry? I've read through the vast majority of these threads and all you have to say is crap about AA. Is there anything good that AA does or should AA just fire all of its management and start over?

 

[goingboeing]

WingNaPrayer. Why are you so angry? I've read through the vast majority of these threads and all you have to say is crap about AA. Is there anything good that AA does or should AA just fire all of its management and start over?

There are a lot more of us than 'wingnprayer' out here.The management of this company just keeps pocketing the remaining wealth of AA in the form of HUGE stock options and salaries.This has got to stop or someday there will be a worker rebellion.I hope it never comes to this because it will be bad for all the employees of AA.I wish someone on the BOD and upper management would come to their senses and correct the problem,but at this juncture it does not look very promising.The employees of AA cannot continue to keep their heads in the sand and pretend that a SERIOUS PROBLEM does not exists with the upper management of AMR.

 

[WingNaPrayer]

WingNaPrayer. Why are you so angry? I've read through the vast majority of these threads and all you have to say is crap about AA. Is there anything good that AA does or should AA just fire all of its management and start over?

Oh gawd yes, the management "team" sucks. Thanks to management, there is zero consistency at AA from station to station - it is not a pleasure to travel this airline because you never know which manager at which station is going to pull which pile of petty crap and rules on which passenger/customer.

You hit the nail on the head. ALL management sorely needs replacing, I've yet to meet any who are even worth a second chance at re-training, they are all set in their ways and their ways are wrong. So yes, can them all and start over from scratch. Perhaps then not only will the airline be able to get back on it's feet, but the investors can once again have confidence in the product that they have been supporting.

Current management's answer to all of AA's problems has been to hock the farm. This airline is deeper in debt than it has ever been, and due to it's current business model, and the rate at which it is sucking through cash, there is no way this company will ever be able to bail itself out of the deep muck that management has put it into.

But, rest assured, management's pensions and golden parachutes are safe. They had the good senses to protect their own benefits trough from the likes of their own bad management.

When management makes moves to protect it's own perks from bankruptcy, employees be damned, then it's time to take a good hard look at who is running the show, and to clean house with a great big broom!

Have a nice day!

 

[Imagolfer]

WingNaPrayer. Why are you so angry? I've read through the vast majority of these threads and all you have to say is crap about AA. Is there anything good that AA does or should AA just fire all of its management and start over?

Good point!

Over at Flyertalk.com, Wing claims to be a shareholder of AMR Why would a shareholder have so much angst for a company they hold stock in?

My bet is that Wing is a scorned ex employee with a vendetta against AMR. His post's are one-sided and hold no water.

With all of your airline knowledge Wing, why don't you start up your own airline and let's see how well you do

 

[Father Guido Sarducci]

Let us pray...

Let us pray that the AFL-CIO looks at it's own leadership...who while enjoying the same CEO type compensation and benefits packages for which they critisize, works hand in hand with airline management to lower the standard of living of it's own members...for the duplicity and hypocracy to end, we pray...day by day and kumbaya... B)

 

[WingNaPrayer]

Why would a shareholder have so much angst for a company they hold stock in?

Oh, I don't know . . . perhaps because of piss-poor management and the dirty dealings that the executive level has been caught red-handedly involved in - investors have lost their own hard earned dollars?

Nah - most likely because I'm a sucker for lost causes, such as kool-AAid drinking employees who don't recognize when a big corporate stick is being shoved up their collective . . . .

My position regarding some of my investments is no different than any other stock holder who reserves the right to publicly show angst when they find they have been ripped off through corporate shennanigans and greed.

You should be tickled at the fact that investors recognize your plight as employees, as well as recognize the fact that it isn't corporate executives that make it possible for a company to flourish, it's labor.

If I were an employee of this company, right after Carty got caught lying while his fingers were in the bankruptcy proof pension till, lawsuits would fly and planes wouldn't!

In the off chance that you're just looking for an argument here golfie, you're cordially invited to kiss my ass (but don't forget to gargle with that wonderful kool-AAid first!)

Have a lovely day!

 

[Oneflyer]

I'm not looking for an argument here but there are several pretty simple facts that make it difficult to understand the "management is stealing the company" bit.

There are less than a 1000 true managers at AA, ie. they manage other people. Even if they their average compensation was $200,000 per year, which its NOT, (not even close), that is only $200 million out of an AMR payroll of 7.2 BILLION. I'm guessing, but I'd bet most of the stock options upper management has are at a strike price well above the current price of the stock. Arpey can have a billion options, but if the strike price of those options is $30 a share and the stock is at 12 bucks they're worthless. I just don't see it.

I don't dispute that AA may/does have some management that needs to go, but don't think for a second that new management would solve all of AA's problems. The outdated work rules that unions cling to as a way to "save jobs" are AA's biggest problem. Eliminating some of these rules would allow AA to grow, and create jobs. It would also more than likely allow AA to increase salaries because workers would be more productive.

I'm not terribly interested in having a upper management vs. union debate, because frankly I'm in neither group, but if you're going to continue to slam AA you should it least try to see the entire picture.

 

[WingNaPrayer]

I'm not looking for an argument here but there are several pretty simple facts that make it difficult to understand the "management is stealing the company" bit.

Fine. Without digesting your post, lets just agree that you have your opinion, and I have mine, and we're both entitled! But don't assume that everyone who disagrees with the way an airline is run must either be a disgruntled employee, or a former employee. It doesn't work that way. That would be like saying every employee that is 100% satisfied with the way things are going must be on the take!

And when I refer to management, I'm not referring to the "1000" you mention, I'm referring to the executive level, the top 42.

I disagree that changing anything the unions are doing would be the answer. AA is still running on the same antiquated cash sucking business model and until they change that, everything else is just window dressing.

And I DO see the entire picture, probably better than employees who weigh everything against the fear of paycheck loss. I know the corporate process and I don't have to see what's going on inside the machine in order to judge the results and know that its actually happening. The numbers don't lie, AA is still on the downslide and all they have managed to do is slow it down a bit and not by generating more revenue, but by slashing compensations and dumping how many now . . .30,000 jobs?

The veeps are leaving and even more this past week have done a little insider trading and dumped thousands of shares of stock (even at a loss!) and if you don't look at that as an indicator, then you deserve to be surprised in the future when you realize what happened, when there are those like me who see it coming now and refuse to give the pocket padding set the benefit of the doubt.

You think I'm hard on AA? You should see me ride herd on the oil company boards!!

The whole gist of this thread was that the AFL-CIO was pointing out, where AA is concerned, that its still business as usual, the big boys are still padding their pockets, nothing has changed, the same greedy folks are STILL in charge, the only change is AMR swapped out Carty for Arpey, everyone is still the same, and while they think they have all the employees appeased because they pre-planned the great Carty exit, they are still funding that same pension fund everyone was so pissed off about, and they are still running on the same business model and they are taking more bad press over it than ever before.