American Airlines' Arpey gets hefty raise

[Hopeful]

BusinessSpotlight on exec pay
SEC will require public companies to give more details on salaries of CEOs, other highly paid employees
THE ASSOCIATED PRESS

July 27, 2006


Companies will have to disclose their executives' pay and perks in greater detail under an overhaul of reporting rules approved yesterday.

Included are new rules on disclosure of the dating of stock option grants to executives, as a scandal spreads through corporate America over suspect timing of option awards.

The Securities and Exchange Commission members voted 5-0 to adopt the plan. It will take effect Dec. 15 so companies' 2006 annual reports issued early next year will reflect the changes.

For the first time, public companies will be required to furnish tables in annual filings showing the total yearly compensation for chief executives, chief financial officers and the next three highest-paid executives.

Most of the disclosures, in annual reports and other regulatory filings, will have to be written in plain English.

The plan is designed to enhance corporate accountability and address an issue that has angered company shareholders and the public.

In the SEC's 72-year history, no other issue has stirred as much interest, with more than 20,000 letters filed during the public comment period that followed the proposal in January, according to SEC officials.

"Shareholders need intelligible disclosure that can be understood by a lay reader without benefit of specialized expertise or the need for an advanced degree," SEC Chairman Christopher Cox said before the vote. "It's our job to see that they get it." In the controversy over the timing of options awards to executives, at least 60 public companies have disclosed that their options practices are being investigated by the SEC or the Justice Department or both. The SEC itself says it has at least 80 companies under scrutiny.

Removed from the original proposal was a requirement for companies to disclose the pay details of as many as three nonexecutive employees whose individual compensation exceeds that of any of its top five executives. Dubbed the "Katie Couric clause" by critics, it brought a flurry of opposition from Hollywood and big media companies.

As an alternative, the SEC decided to propose a narrower requirement for disclosure of the pay of nonexecutive employees who help set corporate policy.

 

[TIME FOR CHANGE]

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

This isnt united or Southwest

 

[Hopeful]

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

Tell me, golfer! How did the UNITED executives fare in all of this?
After asking a bankruptcy judge to throw out the pensions and abbrogate collective bargain agreements "or else", they asked that same judge to increase their own compensation in order to retain the "talent."

But I guess that's ok because, in your view, management deserves it because of AA's performance,. I have yet to read that you give ANY credit to the billions in concessions by the "overpaid" greedy union memebers!

According to you, union workers have been over productive and underpaid for decades, yet the executives were just the opposite?

 

[Nor'Easta]

Tell me, golfer! How did the UNITED executives fare in all of this?
After asking a bankruptcy judge to throw out the pensions and abbrogate collective bargain agreements "or else", they asked that same judge to increase their own compensation in order to retain the "talent."

But I guess that's ok because, in your view, management deserves it because of AA's performance,. I have yet to read that you give ANY credit to the billions in concessions by the "overpaid" greedy union memebers!

According to you, union workers have been over productive and underpaid for decades, yet the executives were just the opposite?

Like TIME FOR CHANGE said above...

This isn't United!

 

[AirLUVer]

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.

Depends on the three day trip. Three day ORDLHR only nets about 16 hours. Three day ORD/NRT 25 hours, and a 3 day ORDPVG 28 hours. A 4 day ORDDEL is 30 hours, but due to late departure and early return is only away from base about 60 hours.

 

[eolesen]

Hmmmm.....

737/A320 pilots at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled.

Mechanics at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled (assuming they exist at all).

Flight attendants at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled.

Rampers and agents at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled.

The only difference between those airlines is the strategy and business plan that management comes up with.

If that's the case, why is it that pilots, mechanics, flight attendants, rampers and agents always want to take credit when the business plan they've executed at management's direction happens to result in profits, but are never to blame when it fails???...

 

[Hopeful]

Hmmmm.....

737/A320 pilots at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled.

Mechanics at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled (assuming they exist at all).

Flight attendants at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled.

Rampers and agents at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled.

The only difference between those airlines is the strategy and business plan that management comes up with.

If that's the case, why is it that pilots, mechanics, flight attendants, rampers and agents always want to take credit when the business plan they've executed at management's direction happens to result in profits, but are never to blame when it fails???...

Who's decision was it to open up two close-in- proximity hubs at RDU and BNA at a cost of hundreds of millions of dollars? Then close them a few years later?

Who's decision was it to spend millions to take seats out of aircraft, spend millions more to advertise MORE ROOM THROUGHOUT COACH, then spend millions to reinstall the seats?

Who's decsion was it to buy TWA and create a morale problem that will most likely fester until the last former TWAer retires?

Who's decision was it to threaten the workers with bankruptcy, hold a gun to our heads, at the same time the CEO and the top forty execs were securing their SERPS?


You're right, we shouldn't be taking credit for that!

What credit are you speaking of ModerAAtor?

THE ONE WHERE WE GAVE BACK BILLIONS IN CONCESSIONS? ALL AA WORKERS? IS THAT THE CREDIT YOU SPEAK OF?

I'll tell what I'll do for you moderAAtor! I'LL RETURN MY RECENT $.40 AN HOUR INCREASE SO ARPEY AND THE FORTY THIEVES CAN STAY AT AA BECAUSE THEY ARE THE "TALENT" THAT WE NEED SO BADLY!


You may believe that AA management is soley responsible for the recent profits. But I see a mangement team that made money despite themselves.
They raped us good. Once they get the pensions from us, then you can really be proud moderAAtor.
Because, unless, you are an EXECUTIVE, YOU ARE GONNA GET THE SHAFT LIKE THE REST OF US.

So you better start working overtime under the desk of that vice president and secure your place in the ranks of elite who are exempt from any sacrifices.

I despise your type who look down on the rest of us because we dont wear a tie to work. You despise us because our hands get dirty and you relish in the fact that the airlines are screwing the lives of tens of thousands of hard working airlne people, even though you view us as overworked and underpaid.
But you would be the first one to sue an airline for having lost a loved one in an air crash because someone did not do their job properly.
No one ever denied management their due! The higher up you go in a company, you should get more. No one ever said otherwise!
But to get obscene increases while you are sill $22 billion in debt is a crime when the rest of us got $.40 an hour.

I won't give you the list of what we gave back! But I hope you sleep well knowing the company scored a major victory by taking away the ONE PENNY AN HOUR LONGEVITY PAY!
THEY TOOK $.29 AN HOUR FROM ME !!!!!!!!!!!!!!!1


YEA!!!!!!!!!!!!!!!!!!!!!!!!!! WHAT A MANAGEMENT TEAM!

THIS WAY THE TOP EXECS GET THE ALL PAID COUNTRY CLUB MEMEBERSHIP IN TEXAS FOR YEARS TO COME!

 

[TIME FOR CHANGE]

Who's decision was it to open up two close-in- proximity hubs at RDU and BNA at a cost of hundreds of millions of dollars? Then close them a few years later?

Who's decision was it to spend millions to take seats out of aircraft, spend millions more to advertise MORE ROOM THROUGHOUT COACH, then spend millions to reinstall the seats?

Who's decsion was it to buy TWA and create a morale problem that will most likely fester until the last former TWAer retires?

Who's decision was it to threaten the workers with bankruptcy, hold a gun to our heads, at the same time the CEO and the top forty execs were securing their SERPS?
You're right, we shouldn't be taking credit for that!

What credit are you speaking of ModerAAtor?

THE ONE WHERE WE GAVE BACK BILLIONS IN CONCESSIONS? ALL AA WORKERS? IS THAT THE CREDIT YOU SPEAK OF?

I'll tell what I'll do for you moderAAtor! I'LL RETURN MY RECENT $.40 AN HOUR INCREASE SO ARPEY AND THE FORTY THIEVES CAN STAY AT AA BECAUSE THEY ARE THE "TALENT" THAT WE NEED SO BADLY!
You may believe that AA management is soley responsible for the recent profits. But I see a mangement team that made money despite themselves.
They raped us good. Once they get the pensions from us, then you can really be proud moderAAtor.
Because, unless, you are an EXECUTIVE, YOU ARE GONNA GET THE SHAFT LIKE THE REST OF US.

So you better start working overtime under the desk of that vice president and secure your place in the ranks of elite who are exempt from any sacrifices.

I despise your type who look down on the rest of us because we dont wear a tie to work. You despise us because our hands get dirty and you relish in the fact that the airlines are screwing the lives of tens of thousands of hard working airlne people, even though you view us as overworked and underpaid.
But you would be the first one to sue an airline for having lost a loved one in an air crash because someone did not do their job properly.
No one ever denied management their due! The higher up you go in a company, you should get more. No one ever said otherwise!
But to get obscene increases while you are sill $22 billion in debt is a crime when the rest of us got $.40 an hour.

I won't give you the list of what we gave back! But I hope you sleep well knowing the company scored a major victory by taking away the ONE PENNY AN HOUR LONGEVITY PAY!
THEY TOOK $.29 AN HOUR FROM ME !!!!!!!!!!!!!!!1
YEA!!!!!!!!!!!!!!!!!!!!!!!!!! WHAT A MANAGEMENT TEAM!

THIS WAY THE TOP EXECS GET THE ALL PAID COUNTRY CLUB MEMEBERSHIP IN TEXAS FOR YEARS TO COME!

DITTO

B)

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

A good read I posted a while back.
Especially for you who feel mgmt deserves thier overinflated salaries


January 29, 2006

Everybody's Business

When You Fly in First Class, It's Easy to Forget the Dots

By BEN STEIN

ONE of the best conspiracy movies ever made is the perfect British classic, "The Third Man." In the most haunting scene, the villain, played adroitly by Orson Welles, takes Joseph Cotten, the good guy, up in a Ferris wheel. The villain, named Harry Lime, has been selling adulterated penicillin in postwar Vienna, making a fortune and causing children to become paralyzed and die.
Mr. Cotten's character, a pulp fiction writer named Holly Martins, asks him how he could do such an evil thing for money. The two men are at the top of the Ferris wheel, and the people below them look like tiny dots. Mr. Welles's villain looks down and says, "Tell me, would you really feel any pity if one of those dots stopped moving forever? If I offered you £20,000 for every dot that stopped, would you really, old man, tell me to keep my money, or would you calculate how many dots you could afford to spare?"
This scene comes to mind when I think of Glenn F. Tilton and other executives of the UAL Corporation and the hapless employees of its primary business, United Airlines. Its history is a perfect text for the ethical morass in which American business often finds itself.
United is one of the proudest names in airline history. It has long been a synonym for fine service and extensive, convenient routes. In the early 1990's, when some investment bankers were casting around for a way to make tens of millions of dollars, they came up with a doozy: the employees of UAL would give up some of their salaries and benefits in exchange for stock in UAL, eventually becoming UAL's largest owner through an employee stock ownership plan.
The deal went through — with staggering compensation to Wall Street — and in 1994 the American employees of UAL, as a group, became its largest owners. Within a few years, overseas personnel were allowed the privilege of tossing their life savings into UAL, too.
Trouble was not far behind. The employees found management demanding pay cuts, big (and, for passengers, inconvenient) changes and cuts in scheduling and services, and even silly changes in their once-great flight attendant uniforms. Then came the blows of 9/11 and a recession, and then rising fuel costs. There were demands for more cuts in pay and benefits and more layoffs. That was not enough. About three years ago, UAL was "forced" to enter bankruptcy to stay alive.
This step meant that UAL could drastically cut workers' pay — and it did. Pensions were simply jettisoned and made the burden of the federal government's Pension Benefit Guaranty Corporation, which meant cuts of close to two-thirds in some pilots' pension payments. And, of course, the bankruptcy simply eliminated all of that equity in UAL that the employees had bought with their hard-earned savings.
Thus, in a series of evil events, management of UAL basically ruined the lives of the employee-owners, if that is not putting too fine a point on it, by taking away their savings, incomes and pensions. (I am indebted to my pal, Phil DeMuth, for much of this research.)
All right, you might say. What else could management have done amid high fuel costs and a deregulated, supercompetitive market? That's "creative destruction," and it's good for the economy, some of my fellow Republicans and admirers of the free market might say. But what about the rules of law and common decency? Because, you see, there is a bit more to the story.
Now UAL has been reorganized. It is preparing to emerge from bankruptcy. It will soon have a stock offering. This offering is expected to raise very roughly $6 billion. It is presumably worth that because UAL now has such low labor costs that it may actually make a profit of some size. (I'll believe it when I see it.)
Here comes the good part: management has asked the bankruptcy court to let it have — free — roughly 15 percent of the stock in the new company, or about $900 million. Mr. Tilton, the chief executive, who plays the Orson Welles character in this drama, would get about $90 million personally for his hard work shepherding UAL through bankruptcy (for which he was already paid multiple millions of dollars).
The bankruptcy court, instead of ordering Mr. Tilton's arrest, instead cut the management share to about 8 percent, so he will get more than $40 million, more or less. That is more than Lee R. Raymond, the chief executive of Exxon Mobil, one of the most successful companies of all time, was paid in 2004 (not counting Mr. Raymond's 28 million shares of restricted stock).
So here it is in a nutshell: employees are goaded into investing a big chunk of their wages and benefits in UAL stock. They lose that. Then they lose big parts of their pay and pensions. They become peons of UAL. Management gets $480 million, more or less. "Creative destruction?" Or looting?
Wait, Mr. Tilton and Mr. Bankruptcy Judge. The employees were the owners of UAL. They were the trustors, and Mr. Tilton and his pals were trustees for them. How were the trustors wiped out while the trustees, the fiduciaries, became fantastically rich? Is this the way capitalism is supposed to work? Trustors save up, and their agents just take their savings away from them?
If the company is worth so much that management has hundreds of millions coming to them, shouldn't the employee-owners get a taste? Does capitalism mean anything if the owners of the capital can be wiped out while their agents grow wealthy? Is this a way to encourage savings and the ownership society? Or is this a matter of to him who hath shall be given?
I know that this is basically the same story I described recently concerning the Delphi Corporation, where something similar is going on. But that's exactly the point. Management is using competition, higher fuel costs and every other cost complaint to cut the pay and pensions of its own employees while enriching itself.
And I can well imagine what goes through Mr. Tilton's mind as he does it: "Hey, I'm a great executive. Great executives in private-equity firms make more than I do. Why shouldn't I get the moolah? Basically, I've worked it so UAL is now a private-equity deal anyway. That's what it's all about now, isn't it? Who's got the most at the end of the day at Bighorn or the Reserve or whatever golf course I choose to retire at? And, anyway, wouldn't you take $48 million for a few of those dots we used to call our employees and owners to stop moving?"
Ben Stein is a lawyer, writer, actor and economist. E-mail: [email protected].

 

[Vortilon]

Hmmmm.....

737/A320 pilots at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled.

Mechanics at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled (assuming they exist at all).

Flight attendants at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled.

Rampers and agents at WN, AS, F9, FL, AA, UA, CO, DL, NW, and B6 are for the most part equally skilled.

The only difference between those airlines is the strategy and business plan that management comes up with.

If that's the case, why is it that pilots, mechanics, flight attendants, rampers and agents always want to take credit when the business plan they've executed at management's direction happens to result in profits, but are never to blame when it fails???...

Like Hopeful stated above, AAs management team has made plenty of mistakes that have cost its employees dearly. Look what Carty did in the few years before 9/11. He sat on his hands while the company was losing millions per day.
American continued to hire more and more to it's already bloated staff. There wasn't even a hint of trying to streamline and adapt to the changing business - to stay ahead in the game. How about the purchase of Air Cal? That was a complete waste. The failed hub in San Jose. Who decided to buy the MD-11s only to have them turn out to be a big disappointment? The purchase of the F-100s was also brilliant. These are costly examples of management blunders at AA - that employees had no say in!

What is your definition of a business plan? The way I see it, without the Employee concessions - there is no profit.
As an AA employee, I want to see the company succeed. This shouldn't be a battle between management and organised labor. Point is, there is no I in team! Management cannot execute it's plan without the team being on board. Likewise the team cannot make a failed management plan become profitable - we have tried though!

 

[operaations]

Arpey deserves his Raise. But Yet so do we. If we do not get a raise equal to his than he should not get a penny. After all we are the ones who suffered the most and if it were not for all work groups we would not have been profitable. If Arpey does not grant all AA employees with the raises they deserve I say Shame on him. And I will have to jump the band wagon of the I hate Arpey Club.

But I trust he will do what is right.

 

[IORFA]

Puff Puff Give -- operaations.

 

[nbmcg01]

Puff Puff Give -- operaations.

The productivity changes have already been decided for the f/as. Cross utilization will be the buzz phrase. Once again brilliant. The APFA can trade it for extended recall knowing that cross utilization will offset any potential recalls for the next 10 years. It is a way to get "rid" of the TWA problem, while appearing to work for the furloughed f/as. The members at large will probably "buy it" because it is a relatively passive productivity change. This is worth HUGE $$$s and I only hope the APFA is more prepared than they were for the RPA "negotiations". They seem to have forgotten that it is their primary job to SAVE jobs, not look for ways to eliminate...Let the games begin.

 

[IORFA]

Nah, nice try though. AA doesn't want to wait 10 more years to expand. Plus, cross utilization is VERY unpopular. I won't say it will never happen, just not too likely.

 

[operaations]

puff puff enlighten me with what the heck that means

and as far as cross utilization goes I say pass it it is worth it.

 

[Bob Owens]

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

They didnt "Lose" their pensions, they just dont accumulate any more time, its frozen, instead they have a 401K with company match-and its portable.The only reason why AA still has it is because the pension costs AA less than a 401K at this time.