Exec Compensation

[AP Tech]

[quote=The Truth,Aug 29 2005, 01:37 AM
It takes extraordinary talent to run a major airline.

I agree with that statement 100% Truth, unfortunately USAirwas was severely lacking in that respect. I not going to waste bandwith listing the mistakes of your so called "extraordinary talent" Take Luv or JetBlue, that is talent, making money without the need of the BK judge. You people are a JOKE. Keep patting youselves on the back, your time will come!!!!

 

[700UW]

This is the difference between someone who gives all control of their earning and career potential over to union representation

[post="293928"][/post]​

See that is where you are wrong again, I did not turn control over my earnings and career to union representation, I made the chose to get involved and help steer the direction of the union, in the end the members made the choice.

And the only control you have is to walkout the door, you don't control what they pay you or the benefits afforded to you, you are nothing more then an employee at will and at the company's mercy and beckon call.

 

[diogenes]

Spin,

I concur with the events leading up to BK1, and I think it goes further than that.
Wolf did not end the cultural struggle between PI/AL/PSA and PIT/INT/DCA that he inherited from Schofield and Colodny. He did not rationalize the route structure (the PHL/PIT question should have been answered in 1995, not 2005), and actually increased fleet complexity. Somewhere in his tenure, we began management by numbers as and ends, rather than a means. And, we saw the full realization of management by command, as opposed to example. In addition to that, as you point out, he put all the eggs in the UA merger. I think the sale of US was the goal from him onward.

Had Wolf resolved those issues, BK1 may have been avoided. But Steve still walked away with a contractual pot of money I would argue he did not earn, based on the straits he left the company in.

I also want to get into the 'shrink the carrier' option. If everything else had been done first, and that was the only option left, I would not have posted umpteen times here. But U made employee cuts the first and only option. Only after 911 did the fleet get rationalized, but the PHL/PIT question remained unresolved, as did fare rationalization. Management's arguments why fares could not be rationalized never rang true and I could not find any other authoritative source that backed their arguements up.

So Siegel leads us thru BK1 and gets everything he wants. You had to be deaf, dumb and blind not to know war with Iraq was coming (it was specifically put into every labor contract as cause to cut wages), with a likely spike in fuel prices.

Before we catch our breath, BKII.

To me, that is prime facie evidence BKI was mismanaged, yet dave walked away with his contractual bundle, too.

At that point, I agree U was near terminal, and Lakefield is due his credit for making chicken salad out of chickensh*t.

So, 3 of 4 CEO's did not get the job done, but laughed all the way to the bank.

Perhaps we'd have gotten better results of the CEO's fortunes were actually tied to the company's.

 

[SpinDoc]

So, 3 of 4 CEO's did not get the job done, but laughed all the way to the bank.

Perhaps we'd have gotten better results of the CEO's fortunes were actually tied to the company's.

SpinDoc replies:

Agreed. Accountability has been sorely lacking since
I started with the company in 1994. Nevertheless,
the CURRENT senior management has done what
was necessary to meet the objective of merging
with HP to ensure the survival of US as a company,
and that is why I still believe the compensation
packages are warranted.

Look, I am a lowly mangement employee who
doesn't make the decisions that come from the
top, and frankly, I don't want that kind of
responsibility. I will be happy just to get out
of "jail" soon. I have given my part to help
the company succeed, and if my services are
no longer needed in the future, I will accept
that.

 

[BottomFeeder]

The Truth,

What happened to the old industry pay that use to be bench mark? Have all the airlines moved their HQ to Virginia?

Yes limiting executive's compensation can help return the airline to health. It shows the other employees that the executive are team players. This is a concept you will never understand. Lead by example.... wonder where that saying came from?

It is going to be interesting to see where your talent lands you after the merger.

 

[diogenes]

No one can really believe that limiting the compensation of a few executives’ holds the key to renewed financial health for a company. It takes extraordinary talent to run a major airline.

I have always maintained it wasn't the executive pay that broke the airline, it was executive decisions.

The Palace, either chaired by Colodny, Schofield, Wolf, Gangwal, Siegel or Lakefield has never accepted responsibilty for a mistake. Not one. And certainly not to the point of saying, "I'm foregoing 50% of my compensation." Or resigning. No, they made sure their contracts were upheld while gutting employee contracts.

Plus, the lack of profits is prime facie evidence they didn't take the right initiatives. They did make excuses. For God's sake, they blamed hurricanes for annual losses, as if DL, AA, WN, etc. didn't suffer, too (who managed to turn a profit in those years).

Which leads to my original conundrum.

If management is not responsible, why pay them the big bucks?

If they are responsible, as you infer and I believe to be the case, why pay them the big bucks for poor results?

You are right about one thing. It does take extraordinary talent to run an airline. I was blessed to work for some in my day, and there was never any doubt in my mind they knew more about the business in 5 minutes than I would know in 5 years.

You know what else? My belief in them was justified by the results. Profit, growth, espirit de corp, pride in the company. Good wages and benefits.

The experience at U for the past 10 years has been otherwise, and forced me to re-evaluate my opinion of management.

Maybe I could do the CEO's job at U.

 

[SpinDoc]

See that is where you are wrong again, I did not turn control over my earnings and career to union representation, I made the chose to get involved and help steer the direction of the union, in the end the members made the choice.

And the only control you have is to walkout the door, you don't control what they pay you or the benefits afforded to you, you are nothing more then an employee at will and at the company's mercy and beckon call.

[post="293931"][/post]​

700:

Despite what the union brochures tell you, I did in
fact begin my career by negotiating my salary.
There were others in my department who were
there for 2 years prior to my arrival, and they were
earning less in salary than I did from day one,
because I negotiated with the office manager.
I'm glad I wasn't constrained by a union contract
to tell me what I should earn when I came in
the door.

As a matter of fact, I have controlled my compensation
and benefits since the day I walked in the door. I did it
through contributing 110% every day, coming to
work on time and ready to work every day, and
bettering my position to receive priority for vacation
requests and other benefits unique to my department.
I didn't do it by garnering any favor from my supervisor
or manager, believe me. I prove my value to the department
every day, and my work paves the way for the extra
benefits.

You are correct that I am at will and can be terminated
at any time. I take great pains to ensure this does not
happen to me by fitting in and doing what is expected
of me. Nevertheless, I know that my services will not
be needed in the next 12 months, due to the merger,
and I have accepted that fact. Life will continue for me.

 

[diogenes]

You know, there was a time when that was against the law.

 

[EricLv2Fish]

700:

As a matter of fact, I have controlled my compensation
and benefits since the day I walked in the door. I did it
through contributing 110% every day, coming to
work on time and ready to work every day, and
bettering my position to receive priority for vacation
requests and other benefits unique to my department.
I didn't do it by garnering any favor from my supervisor
or manager, believe me. I prove my value to the department
every day, and my work paves the way for the extra
benefits.

You are correct that I am at will and can be terminated
at any time. I take great pains to ensure this does not
happen to me by fitting in and doing what is expected
of me. Nevertheless, I know that my services will not
be needed in the next 12 months, due to the merger,
and I have accepted that fact. Life will continue for me.

[post="293958"][/post]​

Spindoc you are exactly the type of person we NEED to keep in this merger. It's not "what the company owes me" so much as "what can I contribute to the company" If we take care of the company, the rest will take care of itself. With the new leadership coming in I hope this attitude becomes contagious. I understand the times past have been difficult for folks at US Airways, but truly there is a new Sheriff in town and he is trustworthy. Mr Parker and his team has many obsticles in front of them, but if anyone can do it they can....they just need some help from all the employees and a little relief from these fuel prices. Spindoc, I hope you and I are able to stick around to see the transformation. They journey will be long and arduous and I know I sure don't won't to miss out on the opportunity to be a part of it!

 

[Finish or Ignore]

Truth:
Poor Southwest and Jetblue. They can't experience the truly professional management skills that we have been exposed to. The losers have not even been in bankruptcy once! And, to make matters worse they made money!
ps truth..you have an excellent future in politics if you desire.

Spin Doc:
I hope US/HP become the most powerful and profitable airline ever in the history of the planet. BUT, IT AIN'T HAPPENED YET. Yes we are alive for a little while longer but the new company is not a rousing success YET. SO, we don't know if our "talent/business acumen" have earned their money like you suggest.

 

[EricLv2Fish]

One reason Jetblue is profitable is cause they have low maintenance costs due to their aircraft being new. Wait until they need to start sending them for C-Checks and the like. Then their maintenance costs will skyrocket and we will see where they are then. Jury is still out on Jetblue.

 

[700UW]

Their planes have gotten sent for C-Checks numerous times all ready.

 

[Finish or Ignore]

One reason Jetblue is profitable is cause they have low maintenance costs due to their aircraft being new. Wait until they need to start sending them for C-Checks and the like. Then their maintenance costs will skyrocket and we will see where they are then. Jury is still out on Jetblue.

[post="294013"][/post]​

Yes..That's it, continue to ignore WN. Pretend it's not there. Our management has done that for years. Not only have they made money, but, they are ranked by Fortune magazine as one of the best places to work for empolyees. There are some good folks at CCY, but, most at the top are L-O-S-E-R-S.

 

[Seatacus]

In the end, the correct decisions were made. The
objective has been met. Welcome to US Airways
operated by America Wesr Holdings, Inc.

That feat, coupled with the ability to raise the
money necessary to complete the merger makes
the executive compensation worth it.

If you disagree, you do not know the basics of
the world of Big Business.

[post="293847"][/post]​

How much of this "feat" was performed by exec management. Perhaps most was performed by our creditors trying to protect their money. Could it be that our exec management just rolled over and said " whatever you want we'll do it"?

 

[Finish or Ignore]

These executives have played an important part-along with the employees-in keeping the airline afloat during the last few years. In limiting executive pay, will only make life harder for the airlines by limiting their ability to keep, and attract, talent.

[post="293900"][/post]​

We should all believe that the "executives" had everything to do with keeping us afloat and nothing to do the dismal fiscal condition of the company that brougt us to where we are. AND the shi**y treatment of the rank and file.