Management Bonuses Restructured?

[eolesen]

No idea what the details are just yet.




--BOARD APPROVES MODIFICATIONS TO MANAGEMENT COMPENSATION--

AMR announced today the AMR Board of Directors has approved a modification to the airline's management compensation program. The change provides for a combination of stock and cash distributions for compensation granted under the 2003-2005 Performance Share Plan, previously known as the Performance Unit Plan. Cash payments will be consistent with American Airlines Annual Incentive Plan. The AMR Board of Directors also decided to make similar changes to the 2004-2006 Plan.

"During the past several weeks there has been much discussion among management and labor about overall compensation issues in a very challenging and competitive marketplace," said Jeff Brundage, Senior Vice President of Human Resources. "The AMR Board of Directors has come to a decision intended to provide a fair balance between structuring market-competitive levels of management compensation with issues expressed by our union leaders and employees. The objective of the AMR Board in making this change is to endeavor to resolve the grievances brought by American's unions and to support management, the unions, and all employees in their efforts to work collaboratively to restore the company to financial health and avoid the confrontational path taken by other airlines."

 

[Connected1]

Trying to read between the lines here...

Sounds like the AIP agreement limits the amount of cash that may be paid out to management. I take this to mean that the remaining piece owed to management will be paid in stock.

 

[Hopeful]

Trying to read between the lines here...

Sounds like the AIP agreement limits the amount of cash that may be paid out to management. I take this to mean that the remaining piece owed to management will be paid in stock.

That reminds me...Are we on track to get our $25 AIP payout?

 

[TWU informer]

Trying to read between the lines here...

Sounds like the AIP agreement limits the amount of cash that may be paid out to management. I take this to mean that the remaining piece owed to management will be paid in stock.

I dont see the difference really.

Just sell the stock for cash....

DOH

They must think we are stupid!

 

[Connected1]

From a total compensation perspective, I suspect you are right. The biggest difference from the company's perspective is that it would reduce the cash outlay in April. Presuming the company already has the stock on hand, more would not have to be purchased before the award.

 

[TWU informer]

From a total compensation perspective, I suspect you are right. The biggest difference from the company's perspective is that it would reduce the cash outlay in April. Presuming the company already has the stock on hand, more would not have to be purchased before the award.

Hmmmmm, since when do we the workers agree with the "company perspective"?

Hell, one executive just returned to AA. I guess the grass wasn't so green on the other side of the fence after all.

 

[operaations]

Hmmmmm, since when do we the workers agree with the "company perspective"?

Hell, one executive just returned to AA. I guess the grass wasn't so green on the other side of the fence after all.

Mr TWU Informer do you ever have anything nice to say about American Airlines.

 

[TWU informer]

Mr TWU Informer do you ever have anything nice to say about American Airlines.

Sure do!

When Crandall was here it was a damn good company, and I enjoyed going to work.

Of course we had leadership then, not some educated patsy who wants the union to run the company.

 

[Imagolfer]

Sure do!

When Crandall was here it was a damn good company, and I enjoyed going to work.

Of course we had leadership then, not some educated patsy who wants the union to run the company.

I loved Crandall just as much as the other guy, but the idustry is not the same as it was when he was at the helm. Sorry, but you argument does not float with me. Record high oil prices, low cost carriers with a greater share around the system, 9/11, do you want me to go on?

 

[TWU informer]

I loved Crandall just as much as the other guy, but the idustry is not the same as it was when he was at the helm. Sorry, but you argument does not float with me. Record high oil prices, low cost carriers with a greater share around the system, 9/11, do you want me to go on?

HUH?

I wasn't "floating" any arguement dippy.

I was stating my opinion.

Do you argue with everyone that has an opinion? Go argue and play with yourself there golfer.

 

[eolesen]

Hmmmmm, since when do we the workers agree with the "company perspective"?

Hell, one executive just returned to AA. I guess the grass wasn't so green on the other side of the fence after all.

Yes, and he's getting $600K per year to return. That and the details about the revised Performance Share Plan are now available on http://edgar.sec.gov

Connected1 was correct -- there will be a split cash & stock award roughly equal to what the cash would have been, but treasury stock will be used rather than paying out cash. Yes, it reduces the outlay, but I still disagree with stock price being the sole metric used to determine a payout.

I also noticed that the 2004 includes Jetblue in the comparison group, and the 2005 plan added Airtran and Alaska. At least the chance of half the comparison group being bankrupt again doesn't exist, right?....

 

[Wretched Wrench]

.......... do you want me to go on?

Why, Yes, of course. Please do.

 

[AMFAMAN]

Yes, and he's getting $600K per year to return. That and the details about the revised Performance Share Plan are now available on http://edgar.sec.gov

Nice how Horton can quit and still come back with full seniority.

Upon the Effective Date, the Executive's entry-on-duty date for purposes of determining seniority and all other benefits normally accruing for members of American's senior staff shall be August 19, 1985 (except as provided in Section (d) of this Agreement).

I also noticed that the 2004 includes Jetblue in the comparison group, and the 2005 plan added Airtran and Alaska. At least the chance of half the comparison group being bankrupt again doesn't exist, right?....

Still short of the comparators used for the rest of the workerbees AIP. At last check it was 11 or 12 for us, with Frontier, Air Trans and JetBlue taking up three spots near the top each time, making us take the lower payouts. Plans should be equal for all.

 

[Crapdog]

:down: Our man Carty :down:

 

[scorpian]

Hmmmmm, since when do we the workers agree with the "company perspective"?

Hell, one executive just returned to AA. I guess the grass wasn't so green on the other side of the fence after all.

That is interesting and I was wondering the same thing myself, maybe the grass was greener but it was cut so short that it was hard to get a bite!

If the unions agree with this B.S. and drop their grievances than we can assume that the union leadership only filed these to appease the membership?