Is Cost The Answer Pt. 2

BB,

My knowledge of Dave's total compensation for 2002 was approx $1.4 million, and Neal Cohen was a little shy of million. Dave did concede to a 20% pay cut bringing his $750,000 salary to $600.000 (3 times that of JetBlue CEO salary). If you add in his sign on bonus of $750,000 in 2002, his total compensation, including expenses came to a little over $1.3 Mils. In the Winter restructuring agreement, Dave conceded to a concession of no bonuses in 2003. However for the year 2004, bonus' are a "free reign", and NOT tied to airline performance but rather tied to personal performance targets.

However, if you have other information regarding the additional $2 Million, please tell.

If Dave and co. come for round #3, I will be requesting info on senior execs medical/dental plan. They say they have the same medical contributions as the pilots which is 26%, but I will need to see proof, which I never have.

Also, they will need to further reduce management ranks, and prove the theory of doing "More with less". They say there are 150 managerial positions open, Why? They need not fill them, we have too many now, and with much more of a reduction of personnel: 20,000 less.

In PIT In-flight alone, we have 6 supervisors and 2 admin supervisors for approx 1175 f/as down from 3,000 at 9/11. Our local union office staff has 1 full time person (Pres) and a part-time staff (VP) to absorb all problems, calls, disciplines, grivances, superv. meetings, all leave of absences, sched issues, claims, furloughee questions, for 1175 f/as. We as a local AFA union have adapted to do more with much less staffing and much less of a budget.

If you look at all of F/A Inflight Department as a whole there are: 7 base managers, (1 extra in PHL), 1 director of INflight, 2 labor relations managers for Inflight, 2 Inflight operations and crew planning managers, 1 Manger of restructuring agreements, 1 VP, not counting all the supervisors in all the other bases as well. All brought on between Jan. of 2002 and present. For a f/a census of approx. 5.200, down from 10,300. Before Jan. 2002, we had 10,300 f/as and there was NO VP of inflight, and only 1 Sr. Director who answered directly to the CEO and 1 inflight manager for 10,300 f/as. What is wrong with the present picture? Some of these new positions were a result of promotions after every resturcturing agreement, thus, they got to circumvent pay cuts by moving up a "grade". IMO, more consolidation is in order.

This is for another future posting.
 
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PitBull,

I had heard the $1.4 million figure before too. Multex doesn't break down what it calls "other" compensation other than to say it doesn't include stock options, which would have become worthless in BK anyway. Here's the cut & paste of 2002 compensation from Multex:

Siegel, David N. $1,331,291.00 $0.00 $2,474,465.00 $3,805,756.00
Cohen, Neal S. $782,446.00 $0.00 $650,099.00 $1,432,545.00
Glass, Jerold A. $446,156.00 $0.00 $183,673.00 $629,829.00
Crellin, Alan W. $514,159.00 $0.00 $131,475.00 $645,634.00

Columns are name (obviously), annual compensation, long term incentive plan, other, & total.
 
I don't know then. On the 10K filing, it reads what I wrote, unless all the figures were some how diluted in something else and showed lower total compensation. I believe the LTPs were not to be realized. I don't understand the $2.4 more that you show for Siegel and the rest.
 
You see Bob, there you go again.

Dave's salary is 5th in the Industry. Mean while we are ranked 7th in the Industry. .No, he doesn't get a bonus for 2003, but his stock value at present if he had the ability to sell it all then leave present day would give him approx $10 Mils. Not bad for 18 months work and a BK to boot. If the stock goes to $20, his shares will be worth close to $40 Million. Nope, Dave's not crying any boo-hoo hoos. His bonuses kick in next year, and is not tied to airline performance.

You see, I don't have a problem with his salary and stock, JUST AS LONG AS HE STAYS AWAY FROM THE RANK AND FILE W2, BENEFITS, AND WORK RULES. He needs to learn how to address the revenue end of the equation. That takes CEO savvy brain power, ingeniusness, foresight and talent. Does he have it?

So, if I were CEO, and had his mind set, I would do everything in my power to boost the stock price. That is were his money and ego lay, and NO gripy employees better stand in his way. And Round #3 concessions are on the way. That is where Dave and co. entire focus will be.
 
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PineyBob,

I'll give you this - losing sleep over executive compensation will only get you tired in corporate America today. As you say, Siegel's income is tied to "similiar sized company of any industry" and the big 5 network carriers. However, even you should admit that it doesn't foster employee morale to hear the CEO say he's underpaid because someone, somewhere, makes more than he while telling the employees they must be "cost competitive" with the lowest "cost" employees of the industry.

Yes, Mullins is doing fine financially but he has only one union to negotiate with. Seems like American got a new CEO recently after Carty ruffled too many employee feathers. And didn't United change CEO's recently after the last one lost the trust of the employees.

As for Neeleman - he started JBLU and look what he has done with it so far. If Dave performed half as well I'd be the first to say he deserves every dime he can rake in.
 
Just Classic !!

Its's OK to draw comparisons between U and it's LCC competition.

It's OK to draw comparison between U's employee's compensation and it's LCC Competition.

However...We have crossed the line of taboo when the employee's draw the same comparisons between U's executive levels of performance and compensation Vs. that of the same LCC's

Hey boys and girls "fair is fair " What's good for the goose..has to be good for the gandor , Well in this case it's more of a lame duck when the performance and levels of actual achievement are examined in a head to head basis.
 

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