Tim Nelson
Veteran
Some on this board have suggested that management doesn't get it, and continues to spend unaccountably in executive compensation with the 1.5 billion that labor already provided.
Below are some quoted sources regarding the issue:
While sitting as Chairman of the Human Resources Committee, Lakefield and the Committee took the following approach to Executive compensation:
"The Committee reviews the compensation levels for peer-level positions of companies of similar size to us, as well as at other major domestic passenger airlines, including, but not limited to, American, Continental, Delta, Northwest and United, and airline compensation data."
While leaving my opinion out in determining whether or not such an approach to executive compensation that includes comparing executive salaries to airlines such as Delta or Northwest is wise for a post-bankruptcy carrier who may again be seeking to 'dig its hands' into rank and file pockets again, the following reports should also be cited:
Further, non-company published reports have said,
" Management salaries at Southwest are consistently the lowest in the industry, while USAirways executives are among the highest, not to mention the structure of managers and the imbalance between the two companies." CWA's Tina Perry
And other reports which suggest labor at US AIRWAYS is a cost advantage item and not the culprit in competing with Southwest airlines.
"Through the bankruptcy process, US AIRWAYS restructured their labor agreements to a point where they now enjoy a labor cost advantage to Southwest. The increased productivity from renegotiated labor contracts with their mechanics now provides US AIRWAYS a maintenance cost advantage to Southwest Airlines as well." Plane business Banter
At any rate, do you believe it does harm to justice if management continues to give out merit bonus' and compares its salaries to mainline airlines, while at the same time possibly pointing to jetblue and other LCC in asking for concessions for rank and filers?
regards,
Below are some quoted sources regarding the issue:
While sitting as Chairman of the Human Resources Committee, Lakefield and the Committee took the following approach to Executive compensation:
"The Committee reviews the compensation levels for peer-level positions of companies of similar size to us, as well as at other major domestic passenger airlines, including, but not limited to, American, Continental, Delta, Northwest and United, and airline compensation data."
While leaving my opinion out in determining whether or not such an approach to executive compensation that includes comparing executive salaries to airlines such as Delta or Northwest is wise for a post-bankruptcy carrier who may again be seeking to 'dig its hands' into rank and file pockets again, the following reports should also be cited:
Further, non-company published reports have said,
" Management salaries at Southwest are consistently the lowest in the industry, while USAirways executives are among the highest, not to mention the structure of managers and the imbalance between the two companies." CWA's Tina Perry
And other reports which suggest labor at US AIRWAYS is a cost advantage item and not the culprit in competing with Southwest airlines.
"Through the bankruptcy process, US AIRWAYS restructured their labor agreements to a point where they now enjoy a labor cost advantage to Southwest. The increased productivity from renegotiated labor contracts with their mechanics now provides US AIRWAYS a maintenance cost advantage to Southwest Airlines as well." Plane business Banter
At any rate, do you believe it does harm to justice if management continues to give out merit bonus' and compares its salaries to mainline airlines, while at the same time possibly pointing to jetblue and other LCC in asking for concessions for rank and filers?
regards,
