Your Opinion of Gerard Arpey

[ronaldl79]

What is your opinion of Gerard Arpey as American's CEO? How does he compare to his predecessors? Over the years, I've been fortunate to correspond with many CEOs (software, trucking, telecom, etc.) and Arpey strikes me as a very calm and "hands off" guy. On the outset, he doesn't appear to be a traditional "hardline" exec, but one who's in control of his image and presentation.

I've read articles, watched the CNBC documentary, etc., so what is he like behind the scenes? Are my impressions of him fairly valid?

To be quite honest, despite the issues at AA and elsewhere, seeing a fresh and young face at a major corporation is a plus. They are what I consider "Executive 2.0" types -- execs who aren't from the "old school" of thought and are capable of creative and modern thinking.

 

[Garfield1966]

This is going to be a thread of hell lol

 

[ronaldl79]

I hope not, Garfield, because I'm looking for nuggets and tidbits. I enjoy learning about people in business and I've been fairly intrigued by Arpey over the past two years. I am aware that he isn't a favorite among many for various reasons, but I am really interested in learning more about him -- the good and bad, without prompting a fire of debate.

Of course, I don't expect any knowledge shared to be sugar-coated, either. There are few saints in Corporate America when tethered to monetary objectives.

This is going to be a thread of hell lol

 

[Wretched Wrench]

I can't get a handle on him. He is a cipher. He is definitely a tool of the same old board of directors, and things have not changed a lot. The same old board of directors that padded and protected the retirement slush funds for themselves and the top guys. He comes across as pretty smart, in a Slick Willie way, with the parsing and spinning he did on the TV program, but still may be a decent guy. I would have a ton more respect for him if he actually practiced what he preached. You know, "shared sacrifice", "Leading by example", little things like that.

So, there is a credibility issue. Without credibility, there can not be much else.

Unfortunately, the airline industry is in such a state that even a decent upright smart guy might not do well. And, of course, with the same good old boys and tokens on the BOD, little would change, anyway. And, AA has a very ingrained corporate culture that could take a generation to improve. So, talking about just Arpey only addresses a small part of the issue. He can be a lightning rod for company haters and an icon or a totem for company lovers.

 

[flyhigh]

Many people I know who have met and or worked with him like and respect him. He's an intelligent leader who definitely knows a lot about the business. He rose through the ranks quite quickly and thus was able to forge a lot of friendships throughout many organizations. A lot of front liners dislike him for the same reasons there is a general discontent for executive leadership in America. I don't buy that as much of a reason since ther has to be somebody in the position and it does pay well. That's how the cookie crumbles. What he has done is keep the company out of bankruptcy, forge a generally better relationship with union leaders, return some shareholder value.

 

[eolesen]

I'm probably one of the few people here who have been in meetings with Crandall, Carty, and Arpey (all at different times, and in settings where there were only four or five at the table).

Crandall could tell what brand laundry detergent you used before you walked in the door, and by the time you left, had every fact or figure committed to memory and would be recall them immediately the next time you sat down with him.

Carty... no point going there. Aloof and elitist.

Arpey... The real deal, unlike many CEO's today. He's here for the game, not the money. The way you saw him doing the preflight on his twin is the way he is in meetings. He's more likely to let two departments fight it out in Executive Committee than to impose his opinion (which Crandall and Carty both were known to do).

While he came up thru the management ranks as Crandall's protoge (that from one of Crandall's assistants who I worked closely with), he definitely falls into the Executive 2.0 classification more than anyone else in senior management at AMR (although Richardi and Reding both have 2.0 tendancies).

I've got faith in Gerard's ability to steer AMR as well as Bethune did CAL, but he'll do it with a lot more humility and less grandstanding.

 

[Bob Owens]

Well here is a leeter to Garton, one of Arpeys underlings who is cut from the same cloth. Change a few of the figures and it allys as well to Arpey as well. The Letter was Titled "Failure is an Option &a Stock."

Dear Mr Garton,

I've been busy working on my house, which I grossly neglected since the
great divergence of wealth amusingly referred to as 'shared sacrifice'.
So, I haven't had time to drop you an e-mail filled w/ my valuable
insight. I see you sold another 28,440 shares of options. Gee, adding
the previous 141,133 shares you dumped, that makes about $3.7 million in
AMR equities you sold in 2006. Are you sure that's enough to eke out a
living??? It must cost a fortune to fuel your yacht. I have the same
trouble gassing up my Ford Taurus. Fortunately you have another 347,680
shares of AMR stock you can sell to make ends meet, & the compensation
committee will give you more if you pout. I have 440 options, which at
best is 8% of what I've given up.

Clearly, there is a disparity between execs & workers despite a moral
obligation following the 2003 concessions. Not only are you lavished w/
stocks but you also received an $1.8 million bonus after AMR posted an
$800 million loss. In comparison, workers collect profit sharing only
after the 1st $500 million profit. 'Pull together, win together' is
dreadfully transparent.

In the last year there has been a whole lot of insider selling of AMR
stock. Yet, not a single exec has bought AMR stock in the last 6 months.
In that same period I purchased 10 shares of AMR -- more than all the
execs combined, who, coincidentally, are millionaires. This is not
surprising to me since execs fail to provide leadership @ AA in respect
to sacrifices & productivity gains. Therefore, it's only natural they
won't provide leadership to potential investors by purchasing the
company stock. Former CEO, Robert Crandall, explained it perfectly:
airlines aren't investments. Heck, they're too mismanaged to be
considered investments. But the same people making the poor management
decisions invariably wring every last penny out of employees & wrangle
free stocks to enrich themselves under the pretense that corporate
recruiters are waiting in the lobby to lure them away.

The 1st European settlement in the USA was Jamestown, VA. Lack of
leadership & class distinction brought Jamestown to near death (sounds
familiar). The aristocrats thought themselves too gentlemanly to farm &
work. Hundreds died of starvation before the leadership was changed &
the practice of class distinction terminated. Only then did Jamestown
prosper & become the incubator of American society.

Mr Garton, there is a genuine quality to leading by example . . . it's
the essence of leadership. If 347,680 shares of stock & 7-digit bonuses
are the minimum to keep you motivated then by all means walk out the
lobby holding hands w/ a corporate recruiter.

Sincerely,
G Santos
AMR shareholder
mechanic & burdening the sacrifice @ JFK

 

[flyastrojets]

The first time I met him I delivered the news that his flight was late due to storms in DFW while he was standing in an airport gift shop looking for something to take home to his children.

The fact that there was no yelling, and no effort to swap airplanes upon hearing this news gave me hope that he might be different than the silver fox. The fact that after meeting me, he managed to remember my name helped even more.

I posted somewhere on this board that I had high hopes for him, and I still do. I'm gone now so I don't suppose I should care, but for some reason I do.

 

[NewHampshire Black Bears]

ronald79,

Another good question.

Former ModerAAtor probably said it best.

I'd add that GERARD is like a "Country Gentleman", WHO, has graduated (with honors) from the US ARMY's school of "SPECIAL FORCES" aka SURVIVED, and lived to tell about the meetings that he sat thru with Bob Crandall.

This was a good question. If you want to get a "10" page response to another question, may I suggest you ask about...Robert(uncle BOBBY) Crandall.

NH/BB's

 

[eolesen]

I'd never even try to compare Garton to Arpey. He was a definite a Carty Croney...

Back in 1999 or so, Garton allegedly "got silly" at a company event in MIA, stripped to his skivvies, and jumped into the bar's fountain, all of this in front of a bunch of CSM's and managers. I was at the event, and chose to have a quiet dinner with my wife instead of going to the bar, but heard all about it the following morning....

If true, how he kept his job after that is beyond me, but that was under Carty's regime... Crandall would have fired him. I'm pretty sure Arpey would have let him pursue other interests, but that sort of thing just shouldn't be tolerated by any manager, much less a VP.

Walking thru the executive parking row in HDQ's garage will tell you a lot about the personalities of the various VP's.

Dan Garton always had something new and flashy, as did Monte Ford (last car was a convertable Thunderbird) and Tom Del Valle (if he wasn't riding his Harley that day).

Arpey? He had the same Toyota Land Cruiser for at least three years.

Carty? He had a Jaguar, but never drove it. Instead, he had a driver drop him off at the front door so he could have the security guy buzz him thru (lest he have to use a card key like everyone else).

Crandall drove Caddies, and couldn't park worth a damn. But he parked in the lot like everyone else, and was known to hold doors open for the ladies.

 

[MCI transplant]

<_< ----- You know what bothers me is the fact that Arpy's Dad worked for TWA! And I hear, at the time, Arpy was one of the few who opposed the TWA buy out! But than again, Crandel worked for TWA also!!!!! And Arpy was supposed to have been hand picked by Crandel! So I guess it all makes sense???

 

[Wretched Wrench]

Golly, some of you are making me want to like the guy.

 

[DFWFSC]

I was eating at the McDonalds on SH121/Glade Rd one day and in comes Arpey, all by himself eating a BigMac and smiling at everybody that walked past him. I doubt you'd ever see Carty in a McDonalds.


Right after AA started to get the 757's, '89 or so, Crandall came out To DFW and spent a day on the ramp..in full AA uniform no less. He wanted to help load out a 757, no sliding carpets back then, so were up there in the back belly and there was some really nasty xxx-rated graffitti written all over the walls. So, Crandall was reading some of them and laughing a bit and we asked him what he thought about all of it...He said with a grin, whenever you have a flat spot your going to have some graffitti, but some of these guys are damn good...they could be making a lot more money somewhere else..He did have a fairly good sense of humor..

 

[MiAAmi]

As much as I wish things would change, Im afraid that Arpey is cut from the same mold as all other AMR management. They would steal the food from your mouth if they thought they could get away with it.

 

[TIME FOR CHANGE]

As much as I wish things would change, Im afraid that Arpey is cut from the same mold as all other AMR management. They would steal the food from your mouth if they thought they could get away with it.

They all ready have
:down: