Beer Bails Out

[AMFAMAN]

[/quote]--- AMR ANNOUNCES DEPARTURE OF CFO JAMES BEER ---

AMR Corporation, parent company of American Airlines, announced today that James Beer, the company's senior vice president and chief financial officer, will leave the company to take a position with Symantec, a software company based in Northern California.

"James has been a great team player, exceptional leader and good friend. He played a key role in the progress we've made under our Turnaround Plan and will be missed," said Gerard Arpey, AMR Chairman and CEO.

Beer became AMR's chief financial officer in December 2003 after serving in various leadership roles in his 15-year tenure with American.

Arpey said that the company will begin a search for a successor immediately. Beer will remain with the company through February.

"While it is always disappointing to unexpectedly lose an executive of James' exceptional capabilities and leadership, American continues to have one of the strongest management teams in the industry, including a very strong finance department. Given that, we expect a smooth transition.

"We wish James every success in his new position," said Arpey. "Our focus now will be to select a leader who will help us build on the great progress we've made."

 

[DFWCC]

See.... I guess we didn't promise a big enough Bonu$

 

[PRINCESS KIDAGAKASH]

I for one am glad to see Mr.Beer leave. Don't let the door hit you in the butt on the way out,Mr.Beer! Good riddance! Maybe now we can get some new blood in our upper management ranks here at AA. Now if we can just get rid of the other Carty-SERPA scammers like Arpey or Garton.

 

[Hopeful]

Do you guys see what Arpey means?

We lost another "key" executive because you greedy union people complain when we want to pay the top execs the big dollars! Do you blame Mr. Beer for dumping his stock several weeks ago?

We need to compensate our executives in the usual obscene manner of which they have been accustomed to so we don't lose them!

If you greedy union folks don't like the way things are going at AA, feel free to quit, like Mr. Beer did, and go to another company and earn even higher dollars!

Mr. Beer was such a loyal executive that he just had to sell his stock and resign his post!

 

[eolesen]

Hate to break it to you, but the only financial "talent" AMR will be able to bring in from outside will be people who didn't make the cut at USAir. Thats because AMR won't pay what the market rates are for a CFO.

There are some positions where a loss at the SVP level isn't too critical, like marketing or IT, but losing the CFO is a huge blow.

Beer more than doubled his salary by leaving. Can't blame him, and I'm sure that anyone who could double their money for doing the same job outside the airline would be nuts not to be looking.

Hopeful, if you were leaving AMR, wouldn't you cash out your options? Why leave money on the table if it's contractually yours?

I'm more surprised he's not sticking around until April for the stock performance payout, which is probably close to $1m for his position (just a guess), but then again his signing bonus at Symantec will probably be close to that.

 

[Connected1]

Honestly, I think the cause of CFO attrition these days is as much related to pay as it is to the presence of a young CEO that appears to have a reign that will extend longer than most Supreme Court justices. There just isn't any room for advancement for CFOs (or anybody else, for that matter) in this company anymore. We're doomed to lose the good ones and keep the incompetent.

 

[Hopeful]

So, ModerAAtor and Connected1, what you are implying is that we should pay the executive "talent" whatever the "market rate" is to retain them. But for the average worker, we can just take a hike if we don't like!

I would be the first to leave if my "market rate" was determined by my peers, as is done in the executive world of management!
And before you give me "that's the problem with union membership" speech, spare me!

Executive compensation is determined by executives!

Hourly worker compensation is determined by the same greedy executives.

Sounds to me like the lowly worker doesn't stand a chance!


Tell me, where is the line drawn for excutive compensation?
Look at UAL! They use a bankruptcy court to lay off tens of thousands of people. They slash the wages and benefits and eliminate the pensions of the remaining workers!

Then Tilton and Co. ask the same bankruptcy judge for 15% of UAL because he made the tough decison to do those things. So poor Mr. Tilton and his "talented" executives only received 8% of UAL because the judge felt that was a fair amount?

Fair amount? For what? FOR RUINING TENS OF THOUSANDS OF PEOPLE AND THEIR FAMILIES LIVES AND FOREVER AFFECTING THE REMAINING TENS OF THOUSANDS OF PEOPLE AND THEIR LIVES?


Yea, you're right, ModerAAtor, we need to keep the talent!

 

[Skymess]

Do you guys see what Arpey means?

We lost another "key" executive because you greedy union people complain when we want to pay the top execs the big dollars! Do you blame Mr. Beer for dumping his stock several weeks ago?

We need to compensate our executives in the usual obscene manner of which they have been accustomed to so we don't lose them!

If you greedy union folks don't like the way things are going at AA, feel free to quit, like Mr. Beer did, and go to another company and earn even higher dollars!

Mr. Beer was such a loyal executive that he just had to sell his stock and resign his post!

I don't think that is what Arpey is saying at all. I think it is just window dressing for "sorry to see you go, have a nice life, we'll survive without you, buh bye".

 

[Connected1]

So, ModerAAtor and Connected1, what you are implying is that we should pay the executive "talent" whatever the "market rate" is to retain them. But for the average worker, we can just take a hike if we don't like!

Hopeful, don't drag me into your debate about pay differential (which doesn't belong in this thread, by the way).

There are three things that I know are true:

1. We've lost 3 CFOs in the last four years.
2. They all left for sizeable pay increases.
3. They all had no opportunity to advance within this company.

I would be willing to bet that if we even paid within 30% of market for our execs and had some sort of assurance that Arpey would move within 10 years, we would be able to retain a bit more talent.

 

[TWAnr]

I would be the first to leave if my "market rate" was determined by my peers, as is done in the executive world of management!

I don't know how to break it to you. Market rates are not determined by coworkers. They are dictated by the laws of supply and demand. When another potential employer offers you a higher salary for your unique skills, as Symantec did in the case of Mr. Beer, then your market value will appreciate.

 

[Skymess]

Hopeful, don't drag me into your debate about pay differential (which doesn't belong in this thread, by the way).

There are three things that I know are true:

1. We've lost 3 CFOs in the last four years.
2. They all left for sizeable pay increases.
3. They all had no opportunity to advance within this company.

I would be willing to bet that if we even paid within 30% of market for our execs and had some sort of assurance that Arpey would move within 10 years, we would be able to retain a bit more talent.

Everyone is replaceable. There are millions of people in this world and a few hundred thousand who are qualified to take Beers place.

Maybe AA should star grooming from within from the lower rungs of management. That way they would have a vested interest in the company and also the knowledge of what we need vs. don't need. How hard can it realistically be? None of the touted geniuses have done anything super spectacular. Unless of course you count nickel and dimeing the passengers so they feel no loyalty and start flying other carriers.


What is your role? How come you aren't bailing out. Why would you want Arpey to bail out? He actually has the support of most of the workers at this airline behind him. It is obvious that you care or you wouldn't be reading and answering posts on all these boards. Do you realistically believe that we can't come out of this hole if we don't give more money to management?

 

[Hopeful]

I don't know how to break it to you. Market rates are not determined by coworkers. They are dictated by the laws of supply and demand. When another potential employer offers you a higher salary for your unique skills, as Symantec did in the case of Mr. Beer, then your market value will appreciate.

That's crap! Let's take CEO compensation! That is determined by the Board Of Directors. The Board of Directors consist of CEOs, executives and other fat cats that run other companies. And those companies that they run have a Board Of Directors who consist of CEOS, execs and other fat cats that run other companies. Do I need to continue?
EXECUTIVE COMPENSATION HAS NOTHING TO DO WITH SUPLLY AND DEMAND. IT IS THE GOOD OLD BOYS NETWORK..


Do you not see what the airlines have done to their workers? The have laid off tens upon tens of thousands of workers creating a "glut on the market." How many CEOS' and upper execs lost their jobs? Not enough to create a glut, I'll tell you that much.


If you are too blind to see that class warfare is in full bloom, then you truly are anti American worker. There is no other reason for your contined support of obscene executive compensation.

You guys remind me of the financial analysts who get a gleam in their eyes when companies announce massive layoffs. 30000 at Ford to lose their jobs?


YEAAAHHHHHH FOR FORD STOCK!


What about the incompetent executives who continued to design and build cars that would make Henry Ford himself say "what kind of crap are they designing?"

What happened to the AA execs who built two major hubs in RDU and BNA only a stone's throw from another in the 80's?
AFter spending millions upon millions building those hubs, closed them years later.

How about more room throughout coach?

SEATS OUT!
SEATS IN!

Hmmmm, let's buy some MD11's!
Well, we really don't have the routes to make them profitable, let's get rid of em!


How about the TWA purchase? How much did that cost the company?

You guys cite the executive talent who leave for greener pastures but never refer to the incompetence who cost the company millions in profits and are never fired!

 

[TWAnr]

Do you not see what the airlines have done to their workers? The have laid off tens upon tens of thousands of workers creating a "glut on the market." How many CEOS' and upper execs lost their jobs? Not enough to create a glut, I'll tell you that much.

Thank you for so ably proving my point that it is indeed all about the laws of supply and demand.

By the way, most of the management folks who have bailed out have gone to companies outside the airline industry. It is the supply and demand of managerial personnel within all of corporate America which affects their compensation, not just within the airline niche.

 

[TWAnr]

Even the unions had nothing but good to say about him:

Mr. Beer's move was no surprise to the Association of Professional Flight Attendants.

"James Beer is a strong CFO," said Lori Bassani, spokeswoman for the union. "It comes as no surprise that he would be courted and pursue greener pastures in an alternate industry."

A joint statement from the Allied Pilots and the Transport Workers Union also praised Mr. Beer.

The Dallas Morning News

 

[Hopeful]

Thank you for so ably proving my point that it is indeed all about the laws of supply and demand.

By the way, most of the management folks who have bailed out have gone to companies outside the airline industry. It is the supply and demand of managerial personnel within all of corporate America which affects their compensation, not just within the airline niche.

And you still miss my point that the the upper crust dictate their own market rates!

The assault on labor in this industry, let alone this country, began a long time ago long before there was a glut of airline workers.

Again, how much is enough for greedy executives? 10, 20, 50 times the average worker's salary?