Executive Compensation

[BoeingBoy]

For those who think Siegel is underpaid:

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Grinstein [new Delta CEO] has indicated that he is acutely aware of the lingering resentment over executive pay. He is taking a flat $500,000 salary, with no bonuses or other add-ons, which he has said give the impression "that you're going to profit from [workers'] sacrifices." [Atlanta Journal Constitution]
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I saw somewhere that AMR's new CEO, Arpey (spelling?) has a base salary of $600,000 - I'll try to find it.

Let's see - the CEO's of two of the three largest airlines in the world have base salaries less than Dave's.

Jim

 

[BoeingBoy]

Bob,

Some are good ideas and some indicate a lack of understanding of the workings of an airline and FAA.

"Pilots would be paid based on the type of planes they are qualified on. More qualifications = more pay."

Basically what we have now paywise. Buses and 737 pay the same, 757/767 more, 330 more yet. Where you're ill informed is that we CAN'T be qualified on more than one type of plane at a time. As soon as we go to training on a new airplane, we aren't qualified on the plane we just came from.

"F/A's would be paid on a per trip basis plus per diem."

Ok, you have 1day, 2day, 3day, and 4day trips. All 1 day trips have different flight hours, same for 2, 3, & 4 day trips - you're saying they should all pay the same?

"Mechs would make less per hour but paid on a "flat rate" hour if such information exists."

Sounds like you're talking about the mechanics where you take your car. What you don't understand is that those auto mechanics are paid per hour - you are billed on a "flat rate". And did you ever notice what the hourly "flat rate" that you get billed for that mechanics time is - about twice what a U mechanic makes. (A good friend is an auto mechanic at a dealership)

"Now it appears that he may need to rethink his situation."

Want to place a side bet that he won't? Or that the "incentive bonus" won't come back after the 2 year moratorium imposed by Congress expires?

I won't quote all the times you mentioned a bonus for no sick calls or meeting performance goals. Siegels mentor, Gordon Bethune, instituted that when he went to CAL. Don't call in sick for a quarter - your name goes into a bowl with others in your employee group. A name is drawn and the winner gets a new Ford Explorer. Meet the on time goal, a bonus to all employees. Meet the lost baggage goal (PAWOB in airline parlance) - a bonus to all employees. Do you think maybe Siegel was out sick when that was all put into place and missed the lesson?

This from the same article on Grinstein's pay:

"Continental was the first air carrier to pay employees bonuses for performance. Every month, the airline gives $100 to every worker when it ranks first in on-time arrivals. (America West, which has a spotty on-time record, recently copied the practice.)"

Jim

 

[N628AU]

I think it would be very interesting to pay mechanics based on their production, much like auto mechanics. Would definitely minimize trips to the bay coffee pots. That being said, the IAM would never let it occur, IMHO.

 

[AOG-N-IT]

I think it would be very interesting to pay mechanics based on their production, much like auto mechanics. Would definitely minimize trips to the bay coffee pots. That being said, the IAM would never let it occur, IMHO.

I would love to be paid like an auto mechanic. The rates are based on a given job...and if you come in under time? you are still paid to smoke and hang out at the coffee pot.

Auto mechanic rates are set by the SAE...and the current levels are $65.00 per hour. The actual mechanic may recieve $25 to $30. out of that $65.00 per hour flat rate....but the remander goes to the business as overhead coverage and of course profit. The profit tends to be in the 19% range based on recent posts in the CLT Observer....and some of the work performed is being questioned as highly suspect in terms of being required at all?

Corruption and Greed knows no limits or boundaries.


BTW....it's easy to point fingers when you have no actual grasp of what is actually involved. Also...Automobiles are my hobby and my sideline work , so yes I tend to know and understand the investment that is involved. Two years at a factory franchised dealership also opened my eyes to plenty as well.