1113c Motion Main Document Page 52
As a whole, Managements
base pay is 12% below the market median and their total cash compensation is 17% below the
market median, placing Management below the 25th percentile (market is 50th percentile) in both
compensation measures. Support Staffs base pay is similarly 23% below the market median,
placing their compensation below the 25th percentile.
1113c Motion Main Document Page 53
Because American competes for the same management and
support staff talent sought by other Fortune 500 Companies, its below-market compensation has
put the Company in a vulnerable employee recruiting and retention position, which has only
1113c Motion Main Document Page 54
American simply cannot reduce significantly Management and Support
Staffs compensation below their already uncompetitive levels and hope to attract and retain the
talent necessary to allow it to successfully emerge from restructuring
SO, management is underpaid, and AA must keep their talent and attempt to recruit new talent.
Yet, AA has to hire millions of dollars worth of consulting firms and advisors to do the jobs that these underpaid hard to keep workers should be doing as part of their daily work scope?
Hell, when my job gets outsourced as a result of the 40% outsource limit, do I get to keep my underpaid job too?
The truth is, that consulting firms have to be hired to do what these underpaid, incompetent individuals cannot even do if they wanted to. Thus no matter what they are being paid, when you have to pay someone else to do their jobs, it is a burden and a cost that should be eliminated to succcessfully reorganize.
I don't mind paying market rate for management employees, I have a problem with paying boat loads of them that appear to be unable to effectively do thier jobs. Hence, even if they were the lowest paid in the industry, that would be too much to pay for nothing.