March 9 , 2006
US Airways CEO Declines 2005 Annual Incentive Payment
March 9, 2006
US Airways today announced internally that CEO Doug Parker has declined his 2005 bonus payment. The airline’s Board of Directors recently approved payouts for eligible employees under America West’s 2005 Annual Incentive Program. As part of that program, the Board awarded Doug a 2005 cash incentive payment of $770,000, which he declined. As part of this same program, eligible former America West employees at grades 23 and above will receive payouts. Details of individual payments will be available from your direct supervisor early next week.
Background
As America West employees will remember, in early 2005, the Company announced it would eliminate AWArd Pay and replace that with a one-time four percent base salary increase for employees below grade 23. Employees grades 23 and higher would then receive part of their compensation through an at risk program, which only pays if the Company achieves certain financial goals. Because America West, on a standalone basis, did achieve its financial goals for 2005, the Board has approved payouts for eligible employees. The Board also elected to make payouts to certain former US Airways employees who are now working as part of the new combined team.
In 2006, the plan will not pay unless payments are also made under the broader profit sharing programs put in place for all represented employees below the director level as part of the merged airline.
CEO Comments
Doug stated, “I am pleased that the America West Airlines annual incentive plan was achieved for 2005. Our team certainly earned and deserves this recognition. While I am honored by the Board’s recognition of my own contributions, I have chosen to decline this award. As CEO of a larger merged airline that has many employees who have taken significant pay cuts and many others still on furlough, I have communicated to our Board that I would prefer to receive an annual cash incentive when our employee profit sharing plans are paying dividends too. In 2006, the annual incentive program will only pay if the profit-sharing plan in place for the majority of our employees pays out.
“I do not take this step lightly as I strongly believe our team has earned this reward. I recognize, however, that deciding to lead the former US Airways team comes with some expectation of shared sacrifice. Unlike most of the team, my total compensation includes some other key elements, including a Long Term Incentive Plan. That Plan paid out a significant amount for 2005 due to America West’s industry leading stock performance from 2002 to 2005. Ultimately, I look forward to the day when profit sharing is a consistent part of our culture and appreciate the efforts of all of our employees as we work to integrate our two airlines.â€
America West’s 2005 Results
America West Airlines produced exceptional results in a very difficult environment in 2005. The Company produced a modest operating profit, excluding special items, in 2005, making it one of a select group of airlines to do so. The combined new management team successfully negotiated and completed the merger, raising more equity than any airline transaction in history and dramatically increasing the viability of both America West and US Airways. America West shareholders, using an LCC equivalent at the beginning of 2005, realized a 132 percent return during the year, the highest of any major US airline.
Here is the ENTIRE article from Compass.
Anyone know who the certain former US Airways employees are??
