Airline execs to reap millions

If you took Hortons 17 mill package and divided it equally to all 70,000 of AA employees.  Each employee would get $242 and wouldn't really boost their standard of living.  Nonetheless it still is a crap deal.
 
robbedagain said:
700 I thought seigel had said that
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You are correct, he most certainly did say that.  It was a hidden or not widely known part of Bugsy's contract that only became public after BK2 was filed.  This caused an uproar, and Bugsy said he would stay and see it through, and then a few weeks later, before the option to do so would expire, he took the money and ran.  I still have his bs letter to employees in my files.  (I save way too much sh!t) haha
 
"David Siegel was just one of the recent MBA-holding hit-and- run artists to become a top US Airways executive. He joined US Airways in March of 2002 at a salary of $750,000. When he filed the company for bankruptcy in August of 2003, he conceded to a 20% pay cut to $600,000 but had already received a signing bonus equal to one full year of his original $750,000 pay. When Siegel resigned in April of 2004, employees were informed that he had received $9 million dollars in salary and stock compensation as severance from the company."
 
Oh, and 700, your hero Rakesh took much, much more, no paltry 5-10 million for him and the Wolfman...
 
"This outraged employees, but severance deals for prior US Airways inside executive pillagers were far worse. In February of 2003, employees were told that $35 million had been paid to three top former executives in 2002 — just months before US Airways’ first bankruptcy filing and after the pilots had been robbed of their wages and pensions. ...
Stephen Wolf, former US Airways chairman of the board, received a $15 million lump payment in March 2002. Rakesh Gangwal got a $15 million lump sum after he quit as CEO in November 2001. Lawrence Nagin stole away with $5 million as an already retired executive vice president in March 2002. These payouts were hidden from shareholders and employees. They were deceitfully tucked deep inside a tall stack of US Airways documents filed with the court at the end of 2002, just months after the disbursements. Notice how Gangwal and Wolf were working as a team against US Airways shareholders and unionized employees — Wolf at the top of the board and Gangwal occupying the top two managerial posts."
 
Please remember also, the stock buyback scam that W&G pulled to finance their own lucrative options at the expense of employees and shareholders... Back when US was profitable and had 2 billion in cash...
 
"In 2000, Wolf ’s compensation from all sources totaled $11.6 million, including $7.6 million in reimbursement for taxes paid on restricted stock received over the years. Gangwal earned $12.1 million in total compensation, including a $7.2 million reimbursement for tax liabilities. In 1998, Wolf and Gangwal both earned nearly $35 million in salary, bonuses and stock options."
 
“As the climate in the airline industry darkened starting in 2000 when insiders were selling out throughout the stock market, Wolf and Gangwal needed to prop up the stock price so that their stock options would guarantee them a vast windfall profit. They used US Airways’ $2 billion in cash with a crude but effective scheme. They used the money to buy the stock back to protect their cost-free-to-them option equity instead of funding the employee pension. They did not even save any of the cash as a safety net as even the most modest of financially literate households do."
 
Source for above quotes: http://optionstrainingcourses.com/author/DocBrown/
 
 
*****
 
Here's a story of Siegel quitting and mentions his pledge to fight on and not take the bonus to leave...
 
 

US Airways CEO quits after two-year tenure

By STEVE HUETTEL
Published April 20, 2004

Last month, David Siegel pledged to fight for the airline's future. Resigning now, he can collect millions in severance.
 
US Airways Group Inc. chief executive David Siegel, who took the airline through a painful bankruptcy reorganization and angered many employees with demands for deeper cost cuts, resigned Monday.
Bruce Lakefield, a US Airways board member and former Lehman Brothers International chief executive, will take over as CEO of the nation's seventh-largest carrier. Lakefield is close to chairman David Bronner, whose Retirement Systems of Alabama owns a controlling stake in US Airways.
 
In an address last month in which he urged employees to support more wage and benefit cuts, Siegel pledged to fight to save the airline instead of exercising an escape clause that allowed him to leave his job this month. By quitting now, he will collect severance of as much as $5-million under the contract.
 
http://www.sptimes.com/2004/04/20/Business/US_Airways_CEO_quits_.shtml
 
robbedagain said:
According to an article on philly.com thru www.justplanenews.com the execs of the new AA are to reap millions. Thomas Horton to receive 17 mill in cash and stock...

well it must be flipping nice that a bunch of morons get richer while the employees who bust their arses still cant get decent wages benes etc etc
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Morons? Hahahaha...hahahahaha....hahahahaaaaaa!
 
 
Bob Owens said:
Do you really believe that?
 
When my father became a Chauffeur for the CEO of Union Carbide he earned around $20,000 a year and the guy in the back earned around $200,000 a year. That was pretty much a top to near bottom view of the pay range at Union Carbide in the early 70s. 10 to 1. My guess is in the most extreme the difference was 20 to 1.
 
Now we have Flight Attendants Earning $40k and CEOs getting $17 million. 425 to 1.
 
Well where do you think that money to pay these people the sums they are getting come from? I know FWAAA will cite that its from stock etc but the fact is in order to drive the stock prices higher they are squeezing the money from the workers. Their millions are coming from you, and Union Leaders suck as yourself unwittingly help them by telling the troops to stay quiet, don't make a fuss and "live to fight another day". for every $1/hr less we make it gives the Bosses an extra $21 million dollars to spread between themselves and other stakeholders.
 
When AA went into BK they never argued that they could not be profitable, they argued that they could not be competitive. there is a diofference, see AA was argueing that they wanted superior cost advantages, and the crook on the bench agreed, after all by offering businesses a way to steal from their workers he ensures that there will be plenty more customers for himself.
 
We are currently around $35/hr (including benefits) below what we should be getting paid in Aircraft maintenance.
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Don't blame management. Its the govt. which makes these kinds of laws.
 
Black Magic;
I don't care, I want it, besides the salary is only a portion of what he gets. These people don't become worth many many millions off just the posted salary, thats probably the smallest portion, our concessions are used to bump up earnings and stock prices, not just at AA but everybody who has a hand in the till including Banks, Airports, oil companies, all sorts of vendors and even the government itself and it works out to a lot more than $242 dollars, more like around $75,000.
 
AA brought in over $25billion last year with 40,000 less employees. That's over $7billion more than they did in 2003, with 40,000 less employees on payroll. Where did all that money go, because it didn't go to us. yes some went to the oil companies, who unlike us get much much more for their product, some went to leasing companies for planes they didn't fly anymore or facilities they didn't use anymore, that would be like paying the 40,000 employees their full pay to stay at home, some went to banks that in addition to charging interest charge millions in fees to change anything in the terms of the loans that AA took. In some cases AA had to keep more cash on hand than the loan was for, in other words they did not need the loan, its just a means to siphon money through fees and interest to the bank (and to claim that they are bankrupt when they have a Billion in cash) some went to airports, again, unlike us jacked up landing fees over 30% over the same time span where our compensation plummeted.
 
So before you throw out BS about how little of a difference it would make if Horton didn't get $17 million step back and realize that for every dollar there that you see he stole from us there are many more that you don't see and those dollars added up have made a huge impact on our quality of life.
 
$242 is a student loan payment...a car payment...a utility payment...a doctor visit etc...
Some of us could use the extra money.
 
Bob, if he took the money it has to be filed with the sec and in the annual report, he didn't take the balloon payment to leave US, he stayed on and left before the first chapter 11.
 
This is the airline you demanded.

You asked for the previous managements' heads, and you got them. Your unions agreed to this.

You expect your new contracts to be honored to the letter, so perhaps it's time to [redacted] on the topic since you agreed to buy them out...
 
Maybe its time to go Wildcat? Just because they bought off a few Union leaders and got the language they wanted doesn't mean we should just accept it. We finally saw that they were removed. The majority of people still here voted against these deals. Who, other than Jim Little, said they were willing to buy these people out? You forget that the first vote failed, the only way they got it to pass was by threatening Tulsa and offering an Early out. By then so many were so frustrated they didn't bother to vote, do you expect them to approach their assignments with any more enthusiasm? So just as we are left with a shytty deal they are left with us, who control pretty much every revenue flight and are the only mechanics passengers ever see, and the way we feel about it. Like I said before, not a formula for success.
 
Along with Bugsy's exit with 4.5 million, I remember we all had to watch a video on ethics. How we all should do what we could to keep the company going by our honesty on the job. A small clip showed an employee taking a couple of flashlight batteries and another employee explaining that it is stealing. I agree it was stealing, but a video on ethics, puleeze, Bugsy had no conscience at all.
Lead by example.
 
dash8roa said:
Along with Bugsy's exit with 4.5 million, I remember we all had to watch a video on ethics. How we all should do what we could to keep the company going by our honesty on the job. A small clip showed an employee taking a couple of flashlight batteries and another employee explaining that it is stealing. I agree it was stealing, but a video on ethics, puleeze, Bugsy had no conscience at all.
Lead by example.
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Not to stray to far off-topic, but that is the only thing anybody remembers about that video. The shot of the empty stockroom cabinet that used to be full of batteries and the one employee's home on Christmas morning with about 40 battery-operated toys - all up and running. It was funny and sad at the same time because we see the battery usage spike every December!
 
WorldTraveler said:
what?

The government doesn't set levels of compensation.
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The govt. indirectly does with management and BOD's being "chum-chum" with each other. There is no transparency between the two. In fact, in many cases (including AA), management is part of the BOD!
 
Laws should be made which make the BOD completely independent of management. We don't see that in the United States.
 
AANOTOK said:
C'mon Jacob, a little childish don't you think!?!?
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Well, ok..a little but that comment did deserve a laugh.
 
eolesen said:
This is the airline you demanded.

You asked for the previous managements' heads, and you got them. Your unions agreed to this.

You expect your new contracts to be honored to the letter, so perhaps it's time to [redacted] on the topic since you agreed to buy them out...
Click to expand...
 
+1!
 
This is nothing new.....Doug Parker made out very well in his last merger....so what made you think he would not make out in this merger? What you have to ask yourself is......we know he can make the mergers work....but....can he make the transition work? Look at USAirways....the pilots west and east have been in court since about day one of the merger.....
 
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