Dave''s Pay

[airlineorphan]

A stroll down memory lane, if you will.....

Last summer, a rumor spread like wildfire through US Airways employees:

The rumor went something like this: Siegel's contract gave him a massive $750,000 bonus.

Soon, in one of Siegel's weekly fireside chats ("press prompt 4 for Dave Siegel's weekly message.") on the company news line.... Siegel expressed dismay, hurt and anger, that people were spreading rumors that he stood to get a big bonus in a time when he was asking the rest of us to tighten our belts.

Not true, not true, he exclaimed! He defended himself with passion and indignation. Shocked that some employees would sow such negativism in the midst of our shared crisis.

After that, the rumor died down a bit.

And several months later, after multiple rounds of givebacks by employees, personal bankruptcies, and many many lost jobs and ruined families.....

Whooop There it izzzzzz! $750,000 bonus!

You can weep for poor Dave Siegel, arguing that he doesn't make as much as Bethune or Mullin, but that is not the point.

They all make way more than they deserve, especially when they demand such great sacrifices of their employees. And this news of the $750,000 bonus simply confirms that Siegel once again that Siegel is not to be trusted, that he does not offer transparency in his business dealings. He knew it would eventually come out in the SEC 10-K filings. Why hide it?

Why? Because he knew it would undermine his ability to bully U employees into working harder for less pay and less benefits if they knew he was getting a fat bonus (while claiming to take a big fat pay cut).

I don't know about the Dave-Defenders, but $750,000 is a lot of money to most of us.

-Airlineorphan


P.S. PITbull, you and your sisters and brother, keep on fighting!

 

[geo1004]

I have an idea! Put an ad in the paper seeking a corporate executive with experience running a multi-billion dollar company and post a salary of $200k. You will get ZERO QUALIFIED resumes.

Save the "I'd do it for half that amount" comments because the reality is, if you REALLY wanted to be in those shoes you'd be doing everything you could to be IN those shoes, but you're not are you?


The pay issues of Wolf and Gangwal are a different story altogether. However, Dave is doing a GOOD job for a decent/fair wage. Give him a chance.

 

[ClueByFour]

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On 3/28/2003 9:54:54 AM LavMan wrote:

Geo, how does crow taste?

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Nice try.

Buffet''s Gulfstream alone probably costs 40 or 50 million, which would pay Dave''s salary for about 15 years at the current clip.

The bottom line is this: you could have promised Buffet a zillion dollars a year, and he still would not have touched U with a 10 foot pole: it was in shambles.

The people complaining about what Dave makes should consider two things: unlike W&G, he''s trying to run the company AND do it for significantly less than W&G ever made.

If you can do a better job running an airline, feel free to offer to do it for 200k; the simple fact remains that you can''t run an airline and those that can won''t do it for 200k/year.

And consider this: he can make that much money without the benefit of a union. Amazing, ain''t it?

 

[LavMan]

Look at Warren Buffet, one of the richest men in America.

Yet in many ways, Buffett remains more like the Othmers than the super-rich. With his tousled white hair and thick, tortoise-shell glasses, his appearance and countenance is most often described as grandfatherly. His annual salary as Berkshire Hathaway's chairman and CEO is $100,000. At the age of 68, he continues to live on Farnam Street in Omaha, in the same gray stucco house he purchased four decades ago for $31,500. He eats burgers or steaks for lunch and dinner, always washing down his meals with Coca-Cola -- a company in which he has invested since 1988. His sole extravagance seems to be a fondness for luxury air travel. In typically self-deprecating style, the frugal Buffett calls his Gulfstream IV-SP jet "The Indefensible."

Our gain in net worth during 2002 was $6.1 billion, which increased the per-share book value of
both our Class A and Class B stock by 10.0%. Over the last 38 years (that is, since present management
took over) per-share book value has grown from $19 to $41,727, a rate of 22.2% compounded annually.∗
In all respects 2002 was a banner year. I’ll provide details later, but here’s a summary:
• Our various non-insurance operations performed exceptionally well, despite a sluggish economy.
A decade ago Berkshire’s annual pre-tax earnings from our non-insurance businesses was $272
million. Now, from our ever-expanding collection of manufacturing, retailing, service and finance
businesses, we earn that sum monthly.
• Our insurance group increased its float to $41.2 billion, a hefty gain of $5.7 billion. Better yet, the
use of these funds in 2002 cost us only 1%. Getting back to low-cost float feels good, particularly
after our poor results during the three previous years. Berkshire’s reinsurance division and
GEICO shot the lights out in 2002, and underwriting discipline was restored at General Re.
• Berkshire acquired some important new businesses – with economic characteristics ranging from
good to great, run by managers ranging from great to great. Those attributes are two legs of our
“entrance†strategy, the third being a sensible purchase price. Unlike LBO operators and private
equity firms, we have no “exit†strategy – we buy to keep. That’s one reason why Berkshire is
usually the first – and sometimes the only – choice for sellers and their managers.
• Our marketable securities outperformed most indices. For Lou Simpson, who manages equities at
GEICO, this was old stuff. But, for me, it was a welcome change from the last few years, during
which my investment record was dismal.

Total earnings in 2002 Total Earnings – All Entities ....................................... $6,613 billion

Geo, how does crow taste?

 

[tadjr]

Though the statistics might be true, that was an uncalled for shot. It has happened in many companies not just US and to blame him for that is wrong.

 

[LavMan]

A 737 or A320 does not even cost $40 to $50 Million, a Gulfstream IV cost anywhere from $10 million to $19 million.

Try again, what do you call positive space travel on any airplane or airline worth?

Also Schofield took a 767-200 from clt-lax-hnl, with only crew, some employees needed to maintain the aircraft and himself and his executive cronies, that is a $100 million airplane.

 

[LavMan]

Run an airline? The only thing Dave has succeded in so far is to layoff thousands and cut our pay and benefits and have 13 employees commit suicide.

 

[geo1004]

LavMan, CluebyFour has hit the nail on the head. I stand by my original statement that you would not get one qualified resume. Quite simply, Warren B. would not waste the 37 cents to mail his in.

 

[TomBascom]

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On 3/28/2003 11:03:39 AM LavMan wrote:

... and have 13 employees commit suicide.

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How many employees commit suicide in the course of a "normal" year? There are around 11 per 100,000 in the general population -- I''m not sure what''s typical for a work force like US Airways. But to lay it all at the feet of management like that is unfair.

 

[geo1004]

FYI - the cost for a new "green" Gulfstream IV (now called the G400) is over $30 million. "Green" means the interior is bare and must be outfitted at an additional cost of up to $1 to 2 million. Even 10 year old "Used" G-IV''s bring $20 million +.

 

[retiredman]

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On 3/28/2003 11:02:28 AM LavMan wrote:

A 737 or A320 does not even cost $40 to $50 Million, a Gulfstream IV cost anywhere from $10 million to $19 million.


Try again, what do you call positive space travel on any airplane or airline worth?


Also Schofield took a 767-200 from clt-lax-hnl, with only crew, some employees needed to maintain the aircraft and himself and his executive cronies, that is a $100 million airplane.

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The 767 to HNL that you speak of was for Pacific ETOPS certification, this was at a time U was considering HNL service. This was a planned, coordinated U/FAA proving run, which I might add was a success. I read some of the posts and I am amazed at the mis-information spewed forth by some. I spent 40 years of life with Allegheny/US AIR and US Airways, and for the life of me I can''t recall many of the "events" that some of you claim to know so much about.
wrong on this one

 

[PHL]

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A 737 or A320 does not even cost $40 to $50 Million, a Gulfstream IV cost anywhere from $10 million to $19 million.

Try again, what do you call positive space travel on any airplane or airline worth?

Also Schofield took a 767-200 from clt-lax-hnl, with only crew, some employees needed to maintain the aircraft and himself and his executive cronies, that is a $100 million airplane.

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Actually, the cheapest ''book'' price of a new 737 is $41M.

http://www.boeing.com/commercial/prices/

Your estimate of a cost for a 767-200 is correct, assuming it''s brand new.

 

[retiredman]

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On 3/28/2003 1:08:26 PM LavMan wrote:

I know it was a proving run for the FAA, when was the last time a proving run included the CEO, his family and other executives?

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You are missing the point, the airplane, crew and support was the plan, what difference does it make who or who was not on board, By the way the A/C stayed overnite and returned the next day ( i''m sure you already knew that ) I was very involved with this proving run and to be honest with you I do not remember any executives and their famlies being onboard, but then again you obviously know for fact.

 

[N786P]

Mr. Buffet owns Net-Jets in CMH, so I quess he can fly in what ever he wishes, he also flys in a Boeing BBJ, I had the honor to meet him, a real gentleman!! Which is more than I can say for any "Airways Empty Suit"!!!!

 

[N786P]

Mr. Buffet owns Net-Jets in CMH, so I quess he can fly in what ever he wishes, he also flys in a Boeing BBJ, I had the honor to meet him, a real gentleman!! Which is more than I can say for any "Airways Empty Suit"!!!!