Amr Executives Took Pay Cuts In 2003


Aug 20, 2002
DALLAS (AP) -- Top executives at American Airlines' parent took salary cuts in 2003, a year in which the company flirted with bankruptcy and lost $1.3 billion.
AMR Corp. chief executive Gerard J. Arpey and other senior officials took cuts in their base pay in April 2003, when the company was asking rank-and-file workers to accept pay and benefit reductions.

Arpey declined an increase in his base pay last year but still received more than he had in 2002 because of long-term incentive payments, according to the filing.

Arpey, who replaced Donald J. Carty as CEO in April 2003, was paid a salary of $535,275 and long-term incentives of $151,020 last year. By comparison, he was paid a $580,000 salary and got options for 184,000 shares in 2002, when he was chief operating officer.

Executive vice president Daniel P. Garton's salary was reduced to $467,275 from $520,000. He also received a long-term bonus of $151,020 and, unlike Arpey, got options on 84,000 shares of stock in 2003.
Everyone else started to take pay cuts in 2002. What's the big deal? Are we suppose to feel sorry for management? They will still survive off a few hundred thousand each year. Don't worry!!!
Of course, you can't really figure out how "bad off" they are without knowing what the options were. Did they get stock options at a dollar? Five dollars" Fifty cents? Without knowing that figure, it's hard to tell whether or not they really took a hit.

Safe to say, retirement/severance bennies are quite attractive for the top 46!