AANOTOK
Veteran
- Oct 10, 2009
- 4,627
- 2,242
[SIZE=11pt]Dear Fellow Team Members,[/SIZE]
[SIZE=11pt] [/SIZE]
[SIZE=11pt]Today we filed American’s proxy statement. A proxy statement is filed annually by public corporations to provide investors with insight into a company’s board of directors, its governance structure, and items to be voted upon at the annual meeting. It also includes details on executive compensation. As we always have done, I wanted to take this opportunity to directly explain to you how I am compensated and how it is reported in the proxy statement.[/SIZE]
[SIZE=11pt]My compensation this year is much easier to explain than it has been in the past because on May 1, 2015, we changed my pay structure to be entirely stock-based. I no longer receive a base salary, an annual bonus payment or any other cash compensation. Instead, I receive a grant of American Airlines stock in April each year. That stock grant vests over three years, meaning I only receive it all if I’m here for three years, and it only holds value if American Airlines is successful.[/SIZE]
[SIZE=11pt]In 2015, I received a cash salary until May 1 and I also received a final cash payment from a legacy US Airways long-term compensation program. In April, I received a stock grant of $10.3 million. Those amounts, along with American Airlines stock dividends, led my total reported compensation for 2015 to be $11.4 million.[/SIZE]
[SIZE=11pt]When compared to my peers (the CEOs of Delta and United), this total is 37% lower than the average of their 2014 compensation. As we said at the time of the merger, so long as our frontline team members are working at rates well below their peers, I should, too. We have rectified that issue for most of our team as we have reached new joint collective bargaining agreements, but we are still working on joint agreements with several of our TWU-IAM represented team members.[/SIZE]
[SIZE=11pt]Whether my compensation is lower than my peers’, or lower than prior years, or paid only in stock, it is still a significant expense to American Airlines and our shareholders. With this compensation comes responsibility – a responsibility to our customers and shareholders, but most importantly, a responsibility to all of you. I take that responsibility very seriously, and am committed to working together with all of you to make American all it can be.[/SIZE]
[SIZE=11pt]Another piece of information disclosed in the proxy statement is that I no longer have an employment agreement, or contract, with the company. This was done at my request, because it didn’t seem right to me that I should be the only person at American with an employment contract. The contract protected me against a number of things that I don’t think I should be protected against – such as if I get fired or if unhappy shareholders gain control of the American Board of Directors. To be crystal clear, just because I don’t have a contract doesn’t mean I intend to leave American soon; rather it is just another way of demonstrating how much I enjoy what I do, my excitement about our future, and how privileged I feel to be working with all of you at American Airlines. Nothing about having a contract felt like a shared commitment to working together with this amazing team to build something great for the long term. [/SIZE]
[SIZE=11pt]We have a bright future ahead of us and I am so fortunate to be working with all of you. Thank you very much for your support and your commitment to American Airlines.[/SIZE]
[SIZE=11pt] [/SIZE]
[SIZE=11pt] [/SIZE]
[SIZE=11pt]Ok Doug, although you failed to mention it, and may not be directly related to you current AA salary, $30 million has you set for life.[/SIZE]
[SIZE=11pt]And by the way, you have multi millions still sitting there in stock options if you need a little cash.[/SIZE]
American Airlines chief executive Doug Parker earned $4 million in a stock sale made on Monday, according to a government filing.
Parker has been selling thousands of stock appreciation rights, which are similar to stock options, that he received when he was chief executive of US Airways between 2006 and 2009. The stock rights are set to expire in the next year and will be worthless if he does not sell them before their expiration date.
This is the second sale of the year. In January, he gained $4.3 million in the monthly stock sale. He plans to sell the stock rights in groups throughout the year. In 2015, Parker made seven stock sales for a total of $30 million as part of a divestiture plan he outlined in June.
With the most recent sale, Parker sold 113,090 stock rights at prices between $38.94 and $39. After the sale, Parker continues to hold 1,398,511 shares of American stock [ticker: AAL]. American’s shares closed at $39.38, up 39 cents on Monday.
Read more here: http://www.star-telegram.com/news/business/aviation/sky-talk-blog/article57793753.html#storylink=cpy
[SIZE=11pt] [/SIZE]
[SIZE=11pt]Today we filed American’s proxy statement. A proxy statement is filed annually by public corporations to provide investors with insight into a company’s board of directors, its governance structure, and items to be voted upon at the annual meeting. It also includes details on executive compensation. As we always have done, I wanted to take this opportunity to directly explain to you how I am compensated and how it is reported in the proxy statement.[/SIZE]
[SIZE=11pt]My compensation this year is much easier to explain than it has been in the past because on May 1, 2015, we changed my pay structure to be entirely stock-based. I no longer receive a base salary, an annual bonus payment or any other cash compensation. Instead, I receive a grant of American Airlines stock in April each year. That stock grant vests over three years, meaning I only receive it all if I’m here for three years, and it only holds value if American Airlines is successful.[/SIZE]
[SIZE=11pt]In 2015, I received a cash salary until May 1 and I also received a final cash payment from a legacy US Airways long-term compensation program. In April, I received a stock grant of $10.3 million. Those amounts, along with American Airlines stock dividends, led my total reported compensation for 2015 to be $11.4 million.[/SIZE]
[SIZE=11pt]When compared to my peers (the CEOs of Delta and United), this total is 37% lower than the average of their 2014 compensation. As we said at the time of the merger, so long as our frontline team members are working at rates well below their peers, I should, too. We have rectified that issue for most of our team as we have reached new joint collective bargaining agreements, but we are still working on joint agreements with several of our TWU-IAM represented team members.[/SIZE]
[SIZE=11pt]Whether my compensation is lower than my peers’, or lower than prior years, or paid only in stock, it is still a significant expense to American Airlines and our shareholders. With this compensation comes responsibility – a responsibility to our customers and shareholders, but most importantly, a responsibility to all of you. I take that responsibility very seriously, and am committed to working together with all of you to make American all it can be.[/SIZE]
[SIZE=11pt]Another piece of information disclosed in the proxy statement is that I no longer have an employment agreement, or contract, with the company. This was done at my request, because it didn’t seem right to me that I should be the only person at American with an employment contract. The contract protected me against a number of things that I don’t think I should be protected against – such as if I get fired or if unhappy shareholders gain control of the American Board of Directors. To be crystal clear, just because I don’t have a contract doesn’t mean I intend to leave American soon; rather it is just another way of demonstrating how much I enjoy what I do, my excitement about our future, and how privileged I feel to be working with all of you at American Airlines. Nothing about having a contract felt like a shared commitment to working together with this amazing team to build something great for the long term. [/SIZE]
[SIZE=11pt]We have a bright future ahead of us and I am so fortunate to be working with all of you. Thank you very much for your support and your commitment to American Airlines.[/SIZE]
[SIZE=11pt] [/SIZE]
[SIZE=11pt] [/SIZE]
[SIZE=11pt]Ok Doug, although you failed to mention it, and may not be directly related to you current AA salary, $30 million has you set for life.[/SIZE]
[SIZE=11pt]And by the way, you have multi millions still sitting there in stock options if you need a little cash.[/SIZE]
American Airlines chief executive Doug Parker earned $4 million in a stock sale made on Monday, according to a government filing.
Parker has been selling thousands of stock appreciation rights, which are similar to stock options, that he received when he was chief executive of US Airways between 2006 and 2009. The stock rights are set to expire in the next year and will be worthless if he does not sell them before their expiration date.
This is the second sale of the year. In January, he gained $4.3 million in the monthly stock sale. He plans to sell the stock rights in groups throughout the year. In 2015, Parker made seven stock sales for a total of $30 million as part of a divestiture plan he outlined in June.
With the most recent sale, Parker sold 113,090 stock rights at prices between $38.94 and $39. After the sale, Parker continues to hold 1,398,511 shares of American stock [ticker: AAL]. American’s shares closed at $39.38, up 39 cents on Monday.
Read more here: http://www.star-telegram.com/news/business/aviation/sky-talk-blog/article57793753.html#storylink=cpy
