David Bronner Letter To Employees

[cavalier]

But...he'll be laughing all the way to the bank while he's wearing his bullet-proof vest...just like Lorenzo.

Hell of a way to live, worrying about drive bys. I guess the old mighty dollar must be worth it in some people’s minds, how sorry it is.

 

[700UW]

Then maintenance will become irrelevant (one thing that Chip is right about) and will cause Bronner to say bye bye to everyone. And once again, the low-life maintenance (grease monkey) employees will be blamed by management and the media for U's demise.

This might be history repeating itself. It happened at Eastern. It might happen at US Airways. If it does, Siegel will keep following the trail of Lorenzo and will be eventially "banned" from ever running an airline again.

But...he'll be laughing all the way to the bank while he's wearing his bullet-proof vest...just like Lorenzo.

Please explain this statement? A US plane cannot fly unless seen by a US mechanic every day.

And go read about Eastern, Lorenzo killed that airline, not the employees. Go as the DOT and DOJ why Lorenzo has been barred from the airline industry.

 

[insp89]

CEO's at other major airlines? ? ? Under Dave’s watch we have become a small regional feeder.

I find it amazing that Bronner compares Siegel's compensation to the other "major" airlines,, While at the same time they both want to compare LABORS compensation to the so called "low-cost" carriers...... PATHETIC

 

[Phoenix]

It's just like sports. Duce Staley and Donovan McNab score the touchdowns. The Center, Guards & Tackles do the work and the touchdown makers get the glory.

Hate to be the one with bad news...

When Donovan McNab runs out the back of the EndZone it is called a "safety".

And that is not glorious.

 

[javaboy]

Dave Siegel’s compensation in 2003 – as reported on his W-2 – was $637,460. Yes, I know that is a lot of money, but it is considerably less than what the CEOs at other major airlines made last year – and it is also much less than what he was offered to come to US Airways in 2002.

The Securities and Exchange Commission requires that a publicly traded company issue to its shareholders a proxy statement that discloses the compensation of top executives. As part of that process, all forms of compensation – including stock grants – must be quantified.

In Dave Siegel’s case, the Board of Directors awarded him a stock grant in 2003 of approximately 1.1 million shares. He is not vested in that stock at the current time and it is uncertain when, if ever, he will be able to sell those shares. But the SEC rules required that the stock grant be given a monetary value in 2003 because that is when it was made. Whether Dave Siegel ever realizes any value or compensation from the grant is still to be determined.

Dave Siegel has already said that he is in negotiations with me about a new employment agreement that is competitive with the compensation packages of CEOs at low-cost airlines. Truth is that those compensation packages usually involve lower salaries and more stock. Dave Neeleman at JetBlue draws a low cash salary, but he holds 7.34 million shares of company stock currently valued at almost $190 million and directly benefits from the company’s profitability and increased stock price. That same philosophy is what guides this Board as we seek to implement management compensation guidelines and policies that will help us return to profitability.

I can assure you that the Board of Directors is quite aware of the sacrifices employees have already made – and are being asked to make again. The labor representatives on the Board of Directors also make sure we do not lose sight of the issues of concern to our frontline employees. The Board has also taken a prudent approach to executive compensation, letting the senior team know that we expect them to make sacrifices along with the rest of the employees. They have done that previously, and will continue to do so.

Furthermore, the entire Board of Directors approved the compensation package for Dave Siegel. So I was quite surprised when I saw comments from labor representatives expressing outrage, completely ignoring the fact that Dave Siegel’s compensation was not a secret and that labor representatives on the Board were fully aware.

In every airline and in every industry, CEOs make more money than the average employee. Dave Siegel leads a team of executives that has kept this airline in business and preserved almost 30,000 jobs. People forget that in the spring of 2002, most people were predicting that US Airways would be out of business by the end of 2002. We are still here, and we don’t have any intention of going away. But we must deal with the changing economics of the airline industry.

Sincerely,

David G. Bronner
Chairman

Nice try Dr Bronner,

....."Dave Siegel has already said that he is in negotiations with me about a new employment agreement that is competitive with the compensation packages of CEOs at low-cost airlines. Truth is that those compensation packages usually involve lower salaries and more stock. Dave Neeleman at JetBlue draws a low cash salary, but he holds 7.34 million shares of company stock currently valued at almost $190 million and directly benefits from the company’s profitability and increased stock price. That same philosophy is what guides this Board as we seek to implement management compensation guidelines and policies that will help us return to profitability...."


1. Mr Neeleman invested 25 million of HIS OWN MONEY to START UP they airline
(how much is DAVE willing to invest in UAIR of his OWN MONEY?? not granted options)

2. Mr. Neeleman makes 250.000 per year Mr Seigel over 600,000

3. Mr Neeleman DONATES almost 100% of his salary to charity
4. Mr Neeleman has 190million because HE started an airline investing His money His time His efforts to BUILD an airline from scratch. Mr. Siegel has simply pointed towards labor and said you are the problem while taking 0 responsiblity for any managment decisions since coming aboard.
5. ..."Dave Siegel leads a team of executives that has kept this airline in business and preserved almost 30,000 jobs. People forget that in the spring of 2002, most people were predicting that US Airways would be out of business by the end of 2002. ..." sorry what you want an award? its still in business? is that Beacuse of your efforts or in spite of your managerial skills.

6. show the efforts to change, no cuts are required to stimulate traffic through a more logical pricing structure. you can do that now with 0 input from union or non union people alike.
7. ..."Furthermore, the entire Board of Directors approved the compensation package for Dave Siegel. So I was quite surprised when I saw comments from labor representatives expressing outrage, completely ignoring the fact that Dave Siegel’s compensation was not a secret and that labor representatives on the Board were fully aware...." your kidding right? excuse me but arent you sitting at the head of the table? well your sitting now. besides the actual dollar for yearly salary and now the "valued" stocked option amount in excess of 10million what about his pension? His pension like mr Gangwal's and Mr Wolfs are GUARENTEED? while others lose theirs? now through congressional Vote UAL was able to save theirs?

sorry i'm really not understanding it, some 30,000 people have lost their jobs and you say hey hes done a good job? how many did southwest layoff, did jetblue? what about the other majors Northwest, America West, Continential, American, Delta, United? UAIR laid off a higher %, took deeper %paycuts than all of them. while they recall UAIR still teaters. UAL is in bankrupcty still yet their pensions are still valid. America West took a governement loan and paid it back and RECALLED its workers (ie they turned the company around in the same time)

Mr. Siegel himself can have the EXACT plan to not only save but make UAIR the number one carrier in the world yet it will never be implemented, he has long lost the ability to lead. I'm sure that is taught at Harvard. I submit, LEADING the employees, Rallying them to follow a clear plan is the correct method from this point not pointing at them and saying other airlines are better than they are, thanks for the pep talk.

A. work for 1 dollar a year, sure take 2 million options granted at 10 bucks a share thats right higher than it is now so the motivation to drive it higher will exsist longer term and showing the employees DAVE is in it shoulder to shoulder by taking the BIGGEST CUT and the FIRST CUT. it should already be done (LEADERSHIP)

B. change the fare structure now this weekend by latest (shows a defined plan exsists and capable of being acted upon)

C. stop looking for excuses in public media (ie blaming the employees) simply GO FORWARD already with your going forward plan. LEAD FOLLOW OR GET OUT OF THE WAY.

 

[PITbull]

C. stop looking for excuses in public media (ie blaming the employees) simply GO FORWARD already with your going forward plan. LEAD FOLLOW OR GET OUT OF THE WAY.

I love this line....

 

[NYPD]

Maybe my sarcasm didn’t come through…I didn’t really mean that the airline’s demise would be the fault of maintenance. Just like Eastern, MANAGEMENT is tearing the airline apart, but in their eyes (and the media’s) it will be the fault of the union who stands up against the injustices. And I feel like the IAM will stand up against the injustices because they feel that they are not welcome on the property and will be eliminated either way eventually.

It is quite clear that the company wants to get away completely from all heavy maintenance. That would entail at least 75% of the maintenance workforce.

 

[Reservation Agent]

Does Mr Bronner think we feel bad that Mr S only makes $637,460?....
That was not so smart...

I think he shot himself in the foot there, by bringing "alot of attention in announcing to all employees " that the company can afford to pay him over $600,000.... and at the same time asking for money from workers who make $20,000 a year with "No pensions, "No SkyBoxes"....struggling to pay bills with what we have left after 2 givebacks.... on what we make....

Lets pass the hat, and help him out...mabey his "Country Club Membership" dues have increased.......... :down: