Gotta say that while I typically say that there's nothing wrong with this, this raise was about as dumb as could be. Just getting ready to head into negotiations and he takes 23%??? Bad strategic move. While the conspiracy theorists believe execs colluded to kill the unions and slash pay, if you know economics, it was quite necessary. Worker cost in the industry was too high for the revenue base. This could be a problem for Arpey in negotiating with pilots and flight attendants who want a raise. The company is in no condition to be giving significant raises out...
American Airlines' Arpey gets hefty raise
- Thread starter AirLUVer
- Start date
Well that would include management then.
Oneflyer, Who are you trying to kid anyway? First of all, Arpey did not get the position of ceo because of hard work and productivity. It was a more like he jockeyed for position to stay in the race, then a number of cards had to fall into place - we all know what happened after that. The success of AA this last quarter was not only because Arpey waved his magic wand - everybody contributed!
With an untimely announcement like that, what do you think the vast majority of AA employees are going to think to themselves and out loud. In your world it would be something like this: "golly gee, it's about time Mr. Arpey got another raise". "After all, he is so underpaid when compared to other ceos at companies of the same size". Get real! There are literally thousands of qualified people for that position that would love to do it for a lot less, and would do a fine job at it as well.
On another note, your 64 hour per month pilot analogy is way off as well. Don't act like you don't understand how weak that argument is. Hell, one three day trip and they are gone for almost 64 hours while getting paid for a fraction of that time.
Bottom line, I feel Arpey is doing OK for the company so far - time will tell. He has been pretty conservative and played it safe. Hey, lead by example - show that you are willing to share in the sacrifice!
Wretched Wrench
Veteran
- Apr 21, 2003
- 1,626
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Hey, lead by example - show that you are willing to share in the sacrifice!
I believe Arpey said that right after we had our concessions forced on us.
Sounded good then. It didn't happen.
Sounds a little hollow now.
TIME FOR CHANGE
Veteran
Lets outsource these thieving bastards and hire some European CEO for half the pay 
Now we go into early openers. Arpey got his now we want ours
Now we go into early openers. Arpey got his now we want ours
I am sure that is hard work, but try leading a multi-billion dollar company through the hardest stretch of road ahead and steer your company AWAY from bankruptcy. AA's board of directors and shareholders are proud of the job Arpey has done and he gets a raise (not close to the compensation of his peers who lead companies the size of AA).
GET OVER IT people, it is what it is and you will never change it. Spend all of your miserable time griping or, yes....find another profession (one that is not so reliable on overpriced fuel!!!)
TIME FOR CHANGE
Veteran
Massive consessions did the steering not Arpey or his greedy mgmt croonies.
Wake up and take off the blinders Jackass
h34r:
Massive consessions did the steering not Arpey or his greedy mgmt croonies.
Wake up and take off the blinders Jackass
You don't think United employees who LOST their pensions conceeded less than you? You, my friend (and I use that term in jest, need to take off your union driven BLIDERS
You don't think United employees who LOST their pensions conceeded less than you? You, my friend (and I use that term in jest, need to take off your union driven BLIDERS
The Company negotiates in "good faith", signs an agreement and then either uses BK or the threat of BK to abrogate the signed agreements. And for that they are given large bonus payments for their innovative management. I wish I could do the same with my creditors and especially the IRS. Oh gee, fuel is up, my costs have escalated, I think I need to abrogate my mortgage agreement, my property taxes, and my personal taxes. And after I accomplish that feat I expect a bonus for my good management skills.
The "mutual aid pact" may be dead in name but there is certainly collusion when it comes to "what the market will bare". This has been a long planned market "correction" of airline workers wages. Unfortunately at AA, the unions were ill prepared for concessionary negotiations (at least the f/a union) and the end result not only cost close to 6000 people their jobs but customers lost a valuable service product .
ps..I'm in management
goingboeing
Veteran
- Jan 30, 2004
- 584
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I think "hefty" is a stretch when you compare his pay with those of his peers managing a company the size of AA.
I know that all of you anti-management folks out there will start the flaming now, but get real folks, Arpey is still not even close to market rate. I can't believe he sticks around for that pay. But I guess you would rather have someone like Glenn Tilton of UAL leading your company through a bankruptcy, shedding your pensions, moving your highest paid execs to a high rent highrise in downtown Chicago
Let's face it folks, Arpey has done a great job in these difficult times.
Edited to add a quote from this Flyertalk forum
http://flyertalk.com/forum/showthread.php?t=583140
According to Airline Pilot Central , an AA 777 captain makes $152,832 per year for working just 64 hours per month. Arpey will be making 4.25 times as much per year, while working at least 3x as many hours, for operating a machine (AMR) that doesn't have an "autopilot" mode.
Put another way, Arpey and a triple 7 pilot are making about the same hourly wage.
I would love to hear of any other industry where the CEO makes the same hourly wage as any category of front-line worker. (Excluding the CEOs who are so wealthy that they take $1/year in salary just to make a statement.)
Signed......An AA fan
A 777 Captain should make what Arpey makes.The pilots are one of the major work groups who are GENERATING THE REVENUE for the Company.If the planes don't fly then Arpey is not needed.
It takes a much larger investment in training an ATP than an MBA.The pilots should be rewarded for the time,money,and energy invested in aquiring the skills to become an ATP.
I do not have a problem with the amount of money that Arpey is getting but the ATTITUDE of AA management.They want ALL Labor groups to keep giving back to the company but they themselfs keep TAKING money from the company.[Recent bonuses of top execs]
Hey,if Arpey does not like what AMR is compensating him then he should move on down the road.The same also applies to me or any other disgruntled AA employee.
NewHampshire Black Bears
Veteran
- Aug 20, 2002
- 10,154
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Oneflyer,
I'm scratching my head, wondering WHY you did'nt tell Hopeful......"hard work and productivity..."WILL" result in a promotion etc/etc/etc" ???????????????????
NH/BB's
goingboeing
Veteran
- Jan 30, 2004
- 584
- 1
The Motto of TWU local 514:Our Pain is Arpey's Gain.
AA Mottoay Employees Less = Arpey's Success
AA Motto
ay Employees Less = Arpey's Success
Hopeful
Veteran
- Dec 21, 2002
- 5,998
- 347
HMMMMMMM, Let's See!!!
If Arpey is single handedly running this multi billion dollar company, then we don't need all the vice presidents of this and vice presidents of that, do we golfer boy? You pro management arse wipes are unbelievable. You revel in the fact that labor was raped and then you say how overpaid and underworked we all were!
Is that the only course they teach in the MBA program at the Wharton School of Business?
You keep telling us how we should get over the fact that these greedy CEO's are getting compensated because of market rate THAT THEIR PEERS MANIPULATE and how if we don't like it, we should quit..
GUESS WHAT?
THE GREEDY EXECUTIVES SHOULD NOT BE CRYING THAT THEY ARE UNDERPAID AT AA AND HOW THEIR PEERS AT OTHER COMPANIES ARE MAKING SO MUCH MORE.
THEY SHOULD QUIT AS WELL FOR BETTER COMPENSATION ELSEWHERE AND STOP COMPLAING HOW THE GREEDY AIRLINE UNIONS ARE PREVENTING THEM FROM THEIR OBSCENE COMPENSATION PACKAGES!
You make me laugh!
Yea, like I'm gonna quit and go work for another company with A GREEDY MANAGEMENT TEAM!
No thanks! I will stay right here and continue to gripe and complain along with thousands of other beaten-down employees whove been raped and who get to see executives get some nice bonuses and raises "because they are so worth it!"
Heck, I have the time to be one the last remaining employees at AA should we go the way of Eastern and PanAM.
I am not worried at all, golfer boy..I'll take whatever the government guarantees me in a pension, even though it will be less than my earned pension.
You know why golfer boy? BECAUSE THE GREEDY AIRLINE EXECUITVIES HAVE TAKEN PENSIONS AWAY FROM US OR AS IN AA'S CASE,,,,,WILL END IT FOR US....
I am sure you applauded the news when USAIR and UNITED screwed their employees while giving themsleves compensation increases?
Does it do your heart good to see that, golfer?
You speak of hard work? What about the airline employees who have given their lives to these companies only to have airline management tell them,,,,"we're not gonna pay you anymore and no more pensions"
Does that make you feel good, golfer boy?
