AMR CEO's compensation rises 11 percent to $5.2M

[Hopeful]

So, the TWU-ATD head, Garry Drummond, is outraged Arpey received an 11% raise. I suppose he's seething that his buddy in the TWU hierarchy John Conley also got a 11% pay increase. You'll recall, Conley is the guy who wanted us to accept a bad deal -- get it in the "rearview mirror" and do what's in the "best interest" for AMR, he said. Yep, Conley's pay jumped from $183,256 to $203,556. Hmmm, that's 11%. I guess there's no righteous indignation when the double digit pay increases are in-house.

Wait till I get my ballot for the next twu international officer elections. Oh, wait! We CAN'T vote for these guys. They DON'T live under the contracts they help negotiate and they get pay raises. Just like management.

I'm sure Little's secretary got a raise as well.

 

[Deleted member 14439]

So, the TWU-ATD head, Garry Drummond, is outraged Arpey received an 11% raise. I suppose he's seething that his buddy in the TWU hierarchy John Conley also got a 11% pay increase. You'll recall, Conley is the guy who wanted us to accept a bad deal -- get it in the "rearview mirror" and do what's in the "best interest" for AMR, he said. Yep, Conley's pay jumped from $183,256 to $203,556. Hmmm, that's 11%. I guess there's no righteous indignation when the double digit pay increases are in-house.

Wait till I get my ballot for the next twu international officer elections. Oh, wait! We CAN'T vote for these guys. They DON'T live under the contracts they help negotiate and they get pay raises. Just like management.

Arpey is neither a MAN nor a LEADER.He should be ashamed of himself. AS for you DRUMMOND, you are "outraged"? Really? Then do something you spineless idiot!!! You are no different than the airline "leadership". All of you, every single one are nothing but a bunch of pandering blowhards who are totally disconnected with the working men and women of this once proud airline. I am absolutely disgusted with each and every person in a leadership role at AA/TWU.

 

[Hopeful]

tech,


Frank Lorenzo has some company. Frank meet Gerard.

In all fairness Ken, Frank is enjoying Gerard's company, Little's, Conley, Drummond, Veidetich, Gless and even Little's secetary as well.
The mere fact that the TWU is criticizing Arpey & Co.'s compensation exemplifies the pot calling the kettle black.

Do the pro-TWU supporters see the hypocrisy here? The TWU leadership has not shared in any pain either!

 

[Frank Szabo]

In all fairness Ken, Frank is enjoying Gerard's company, Little's, Conley, Drummond, Veidetich, Gless and even Little's secetary as well.
The mere fact that the TWU is criticizing Arpey & Co.'s compensation exemplifies the pot calling the kettle black.

Do the pro-TWU supporters see the hypocrisy here? The TWU leadership has not shared in any pain either!

Hush up - you're not supposed to notice that ...

[/sarcasm]

 

[eolesen]

I see no justification whatsoever for that type of increase...

 

[strikeforce]

Arpey is neither a MAN nor a LEADER.He should be ashamed of himself. AS for you DRUMMOND, you are "outraged"? Really? Then do something you spineless idiot!!! You are no different than the airline "leadership". All of you, every single one are nothing but a bunch of pandering blowhards who are totally disconnected with the working men and women of this once proud airline. I am absolutely disgusted with each and every person in a leadership role at AA/TWU.

Ken, I don't see the spineless membership doing anything either! Where's the outrage from the floor? Any metal sitting?
No! Business as usual!

 

[tech2101]

I guess you don't believe in lead by example. Yes he should turn it down, and he should step down or resign.

I do think he should lead by example. If he is asking for concessions, then yes, he should have turned it down.

 

[Hopeful]

Ken, I don't see the spineless membership doing anything either! Where's the outrage from the floor? Any metal sitting?
No! Business as usual!

Bingo!

 

[odie01]

Ken, I don't see the spineless membership doing anything either! Where's the outrage from the floor? Any metal sitting?
No! Business as usual!

The outrage is their, we just don't have the leadership at the international level to channel it and use it to our advantage. Really, who want's Jimmy L / Napoleon, to lead us into battle?

 

[odie01]

Garry Drummond 4/23/11 Paid $181,869.00(Two time winner this year)

Things that make you say "huh?" ATD Director Garry Drummond was full of fire and brimstone while lashing out about Arpey's 11% raise in the media. But wait, his colleague in the TWU hierarchy (and Representation Now's fav) John Conley also got a 11% pay increase. You'll recall, Conley got a promotion and pay hike after pushing us to accept a bad deal -- get it in the "rearview mirror" and do what's in the "best interest" for AMR, he said. Yep, Conley's pay jumped from $183,256 to $203,556. But, what the heck, when double digit pay increases are dished out in the TWU family, it's time to board Bob Gless' boat and do the chicken dance with Tony McCoy. Brother Drummond, your eloquent double talk earned you your 4th 'TWU Genius of the Week'. Now lets flap our wings and join Brother McCoy on the dance floor!!!

 

[FWAAA]

I see no justification whatsoever for that type of increase...

I'd agree, IF Arpey had actually received a raise (let alone an 11% one) last year.

I know that you realize that the Proxy Statement numbers on stock awards like the PSP are estimates of value (for stock that won't be paid out until April, 2014) and don't reflect what Arpey actually earned last year.

From the linked article:

The value that a company assigned to an executive's stock and option awards for 2010 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted.

From the 2011 AMR Proxy Statement:

The amounts shown were not actually paid to the named executive officers. As required by the rules of the SEC, the amounts instead represent the aggregate grant date fair value of the performance shares and deferred shares awarded to each of them in 2008, 2009 and 2010, and for Mr. Arpey, career performance shares awarded in 2008 and 2009, which were determined in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 (“FASB ASC Topic 718”). The grant date fair value of the performance share and career performance share awards is based on our estimate on the grant date of the probable outcome of meeting the performance conditions of these awards. See note 9 to the consolidated financial statements in our Form 10-K for the fiscal year ended December 31, 2010 for the assumptions we used to determine the aggregate grant date fair value of these awards. The aggregate grant date fair values of these performance share awards assuming we meet the highest level (or 175%) of the performance conditions of these awards are: Mr. Arpey ($3,165,015), Ms. Goren ($880,428), Mr. Horton ($1,766,278), Mr. Garton ($1,221,233), Mr. Reding ($1,221,233) and Mr. Kennedy ($880,428). The amounts reported do not include any reduction in the value of the awards for the possibility of forfeiture.

What we have here is an Associated Press analysis of the Proxy Statement and that analysis is filtered thru the lens of some journalists. Did Arpey make more money in 2010 than in 2009? Nothing in this article confirms that he did. Did Arpey get a "raise" in 2010? Nope.

In short, this article is much to do about nothing. I'm not qualified to comment intelligently on the technical aspects of airplane repair, and most respondents in this thread (most of whom are airplane mechanics) lack the expertise to comment intelligently on this article. But it is good for whipping them into a lather.

 

[Hopeful]

In short, this article is much to do about nothing. I'm not qualified to comment intelligently on the technical aspects of airplane repair, and most respondents in this thread (most of whom are airplane mechanics) lack the expertise to comment intelligently on this article. But it is good for whipping them into a lather.

One thing we have expertise on is getting screwed. No one has more expertise in this entire country's history of labor relations in getting screwed than the airline worker. People such as your self who are well educated in the non-union side of business because your education and training led you in a different direction in life lack the expertise to comment in our struggle and what has happened to us. You believe that you can read our contract and decide it is uncompetive and outdated and inefficent,,,etc etc etc and we should just take your opinion as the gospel.
but when we criticize our management team, you retort with we are unable to comment intelligently.

It must be a long way down from your eyes to the end of your nose when you look at us low life mechanics beneath your educational and pay grade.

 

[eolesen]

I don't think that's the case at all, Hopeful. But there are some huge misconceptions when it comes to executive compensation, especially the fact that 70% of their take-home pay is at-risk every year. It's not too different from the people who think tax breaks for the rich are always bad without comprehending that "the rich" are already taxed at 40-50% and paying far more of the tax burden than what anyone reasonable would consider "fair"...

Make no mistake -- the 30% of salary that is guaranteed is more than enough to live on. But the remaining 70% isn't just some arbitrary amount. There are defined thresholds which dictate how and when that gets paid, and that's why it isn't a bonus by the real definition of a bonus. And those thresholds are specifically what I have taken issue with as a former employee and shareholder -- performance pay shouldn't ever be based on stock price. It should be based exclusively on meeting corporate operational, strategic, and/or financial targets, and not external factors.

For comparison, calling variable comp a bonus isn't too different than calling Jim Little a scab because he sold you out at the bargaining table in 2003. It's despicable behavior, but it isn't fair to put him on par with a replacement worker or a unionist who willingly crosses a picket line...

 

[Bob Owens]

I'd agree, IF Arpey had actually received a raise (let alone an 11% one) last year.

I know that you realize that the Proxy Statement numbers on stock awards like the PSP are estimates of value (for stock that won't be paid out until April, 2014) and don't reflect what Arpey actually earned last year.

From the linked article:



From the 2011 AMR Proxy Statement:



What we have here is an Associated Press analysis of the Proxy Statement and that analysis is filtered thru the lens of some journalists. Did Arpey make more money in 2010 than in 2009? Nothing in this article confirms that he did. Did Arpey get a "raise" in 2010? Nope.

In short, this article is much to do about nothing. I'm not qualified to comment intelligently on the technical aspects of airplane repair, and most respondents in this thread (most of whom are airplane mechanics) lack the expertise to comment intelligently on this article. But it is good for whipping them into a lather.

1 plus 1 still equals 2 no matter how you spin it, granted with the finesse of a shyster playing three card monty you dress it up with a lot of legal and financial speak but at the end of the day he did the same thing he did last year but got 11% more. And just like the Shyster you move on to different subjects when things get hot.

 

[Bob Owens]

I don't think that's the case at all, Hopeful. But there are some huge misconceptions when it comes to executive compensation, especially the fact that 70% of their take-home pay is at-risk every year. It's not too different from the people who think tax breaks for the rich are always bad without comprehending that "the rich" are already taxed at 40-50% and paying far more of the tax burden than what anyone reasonable would consider "fair"...

Well how do the rates they pay today compare to what they would have paid 50 years ago? 50 Years ago when the USA was at its peak of power and influence and the envy of most in the world. Feel free to adjust it for inflation as well.

The fact is even adjusted for inflation those that are paying 40 to 50% now would have been paying 90% or more then, so they are paying half what they used to-before the tax breaks. Most of the Tax writeoffs for common folk were eliminated by Reagan in the 80s as they added ones that only the Rich could get.

Now lets look at working folk, back then we would have been paying around 10%, thats all in, SSI, Fed, State etc. SSI was 2%. Now we pay around 30% or more all in. So for us the tax has tripled while theirs has been cut in half.

Our rates tripled on our much smaller incomes while theirs on their much larger incomes was cut in half! Is that fair? Do you really think that the Rich have ever been treated unfairly in this country? Maybe they should see how the rich were treated in Revolutionary France or Russia.

The fact is for the same amount of income they pay the same rates, so progressive taxation , despite the way you spin it is fair. For their first $60,000 they pay the same as I do, and if I made a million on top of that I would pay the same as they do.

Even with 70% "at risk" as you call it(Are you saying that our incomes are guaranteed? Thats news to us!!) thats still leaves Arpey with over $3 million a year!! Nobody who manages a company deserves that kind of pay. Thats more than most people make in a lifetime.

What "the right" leaves out is that when people go into a higher tax bracket they only pay the rate on the amount thats in that bracket. Lets say the brakets are 10% for income under $50k and 20% from $50 k to $100 k and 50% over $100 k. If you earned $101k you would not pay $50.5k in taxes. You would pay (10% x 50k) + (20% x 50k) + (50% x $1k) = $5k +$10k +$500 = $15,500. So the guy who got just $50 k for his years worth of labor would net $45,000 and the guy who got $101k would net $85,500. Is that really so outrageous?

So in reality the $101 k guys total taxes even though he is in the $50% tax braket is just over $15%, then comes all the write offs which bring the rate even lower but all we will hear about is how the rich are being given an unfair tax burden as their corporations provide them Cars, Travel, clothing allowances, golf fees, junketts, meals and entertainment under the guise of Charitable Contributions, etc, etc.

How much was Arpeys clothing allowance last year????