Airline cut salaries, dropped bonuses amid financial woes
US Airways paid its top executives less last year than it did in 2003, according to the company's annual report, filed Tuesday.
Executive vice presidents Al Crellin and Elizabeth Lanier and senior vice presidents Jerry Glass and Ben Baldanza all took home less in salary and bonuses in 2004 than they did the previous year, mostly because of companywide pay cuts that took effect in October. None received bonuses in 2004, a year when the airline filed for bankruptcy protection and lost $611 million.
Chief executive Bruce Lakefield, in his position for just over eight months in 2004, took home $286,000. His $425,000 annual salary is less than that of predecessor David Siegel, who made $600,000 a year in 2003.
Lakefield's pay is comparable to that of CEOs at profitable discount airlines, which US Airways is attempting to emulate. Southwest Airlines CEO Gary Kelly earns a $400,000 salary and is eligible for a bonus. In 2003, JetBlue Airways CEO David Needleman earned $295,000 in salary and bonus and AirTran Airways CEO Joe Leonard earned $1 million, according to securities filings.
Executive pay has been a sore subject at US Airways, where management has asked rank-and-file workers to endure three rounds of pay cuts since 2002. As part of efforts to cut costs, the airline said in October that senior management would take a 10 percent salary cut and have their retirement plan contributions chopped by 25 percent.
Workers complained that those cuts were insufficient, because the airline was asking union employees to accept pay cuts of 21 percent.
US Airways, the nation's seventh-largest airline, is Charlotte's dominant carrier. About 5,700 employees are based in Charlotte, the airline's largest hub.
Lakefield did not take a pay cut. In October, he told reporters that his pay was already in line with that of low-cost carriers. Securities documents say he is forgoing bonuses until the airline becomes profitable.
For the first time, the airline also detailed the severance package awarded to Siegel. Forced out in April, his total compensation from US Airways in 2004 was nearly $6.4 million, according to the annual report.
In addition to nearly $200,000 in salary in 2004, the airline paid him $4.7 million in severance, $1.2 million in retirement pay and related reimbursement for tax liability, plus $75,000 for unused vacation pay. In 2004, Siegel also received $12,000 for tax and financial planning, $6,000 for car expenses and $27,000 for tax liability related to personal travel.
Former chief financial officer Neal Cohen, who left in April, received $1.5 million in severance, in addition to $129,000 in salary, according to the filing.
Executive Compensation
2003 Salary 2003 Bonus 2004 Salary
Bruce Lakefield, CEO 0 0 $286,058
Al Crellin, Exec VP $352,750 $72,915 $346,928
Elizabeth Lanier, Exec VP $284,914 $250,000 $345,966
Jerry Glass, Senior VP $319,550 0 $313,405
Ben Baldanza, Senior VP $352,750 0 $347,246
US Airways paid its top executives less last year than it did in 2003, according to the company's annual report, filed Tuesday.
Executive vice presidents Al Crellin and Elizabeth Lanier and senior vice presidents Jerry Glass and Ben Baldanza all took home less in salary and bonuses in 2004 than they did the previous year, mostly because of companywide pay cuts that took effect in October. None received bonuses in 2004, a year when the airline filed for bankruptcy protection and lost $611 million.
Chief executive Bruce Lakefield, in his position for just over eight months in 2004, took home $286,000. His $425,000 annual salary is less than that of predecessor David Siegel, who made $600,000 a year in 2003.
Lakefield's pay is comparable to that of CEOs at profitable discount airlines, which US Airways is attempting to emulate. Southwest Airlines CEO Gary Kelly earns a $400,000 salary and is eligible for a bonus. In 2003, JetBlue Airways CEO David Needleman earned $295,000 in salary and bonus and AirTran Airways CEO Joe Leonard earned $1 million, according to securities filings.
Executive pay has been a sore subject at US Airways, where management has asked rank-and-file workers to endure three rounds of pay cuts since 2002. As part of efforts to cut costs, the airline said in October that senior management would take a 10 percent salary cut and have their retirement plan contributions chopped by 25 percent.
Workers complained that those cuts were insufficient, because the airline was asking union employees to accept pay cuts of 21 percent.
US Airways, the nation's seventh-largest airline, is Charlotte's dominant carrier. About 5,700 employees are based in Charlotte, the airline's largest hub.
Lakefield did not take a pay cut. In October, he told reporters that his pay was already in line with that of low-cost carriers. Securities documents say he is forgoing bonuses until the airline becomes profitable.
For the first time, the airline also detailed the severance package awarded to Siegel. Forced out in April, his total compensation from US Airways in 2004 was nearly $6.4 million, according to the annual report.
In addition to nearly $200,000 in salary in 2004, the airline paid him $4.7 million in severance, $1.2 million in retirement pay and related reimbursement for tax liability, plus $75,000 for unused vacation pay. In 2004, Siegel also received $12,000 for tax and financial planning, $6,000 for car expenses and $27,000 for tax liability related to personal travel.
Former chief financial officer Neal Cohen, who left in April, received $1.5 million in severance, in addition to $129,000 in salary, according to the filing.
Executive Compensation
2003 Salary 2003 Bonus 2004 Salary
Bruce Lakefield, CEO 0 0 $286,058
Al Crellin, Exec VP $352,750 $72,915 $346,928
Elizabeth Lanier, Exec VP $284,914 $250,000 $345,966
Jerry Glass, Senior VP $319,550 0 $313,405
Ben Baldanza, Senior VP $352,750 0 $347,246
