LGA pilot gets it

[sharktooth]

From the USAIRway's LGA base.


Fellow "LGAites",

Please take the time to read the attached file, which is the SEC filing by US Airways describing the Executive Long-term Incentive bonus plan. Here is where I become amazed.....
Our "humble" executive team has been awarded a new incentive plan (they just completed a plan year as well...I wait to see how our executives made out under the last "incentive plan". ) Read this document CAREFULLY, and try to keep your blood from boiling.

In a nutshell, I find the "targets" and the corresponding bonus "awards" very interesting. For example, these individuals are eligible for cash bonuses of up to 200% of their base salaries, based on a number of performance results (baggage complaints vs. our "peer" airlines...which oddly enough comprises the smallest portion of the award!, on time results, etc.) and financial results (you might think stock price would be a factor?) Clever that the BASE measure for the stock price just happens to be near a 52 week low, and will then compare to where it is three years from now... why not 1 year from now?

So here is where the heartburn settles in.... IF we finish #1 among our peer group (consisting of 12 airlines) then the exec.s "win" a bonus of up to 200% of their salary. If we finish exactly IN THE MIDDLE of the group (that would be an "average" performance for most of us!) then the Senior VP collects an extra 70%, the Exec. VP pockets an extra 100%, the Pres grabs an extra 115% whilst our "esteemed" CEO walks with a cool 125% above and beyond his normal salary. AND THIS IS THEIR TARGET... to finish DEAD MIDDLE of the pack! If we finish in the BOTTOM 1/3 of the pack, these folks STILL receive an EXTRA 30% (SVP), 43% (EVP), 49% (Pres) and 54% (CEO)! I believe in the past Mr. Parker referred to these and other bonuses as "at risk income."

So maybe our next contract should follow the same intelligent thinking; If a flight departs OR arrives "on time," ("average" or targeted times by the company) then all crewmembers should receive bonuses of: 70% for all F/A's beside the "A"; 100% for the "A" F/A; 115% for the F/O; and 125% for the CAP. If we depart or arrive ahead of schedule, the bonuses go up. If we fall to a point of departing or arriving no later than 2 of our 3 "competitors" (or 8 of 12) than we should still collect an extra 30%, 43%, 49% and 54% ABOVE our base salaries.

We could carry that forward to our checkrides, computer based training, attendance, and check-in times as well.

I find it ludicrous that our management (and their "buddy" board members comprising the compensation committee) should reward themselves for BELOW AVERAGE performance, while they not only EXPECT, but DEMAND above average performance from the employees, EVEN AFTER CUTTING THEIR SALARIES AND BENEFITS!!!!

And you want to talk about our CEO's performance over this last year? I would HOPE that our shareholders get a bit upset by the performance of the stock (from a recent high of $65 per share, to a 52 week high of $43 per share, to the current $9.25 per share). Let's wait to see if Mr. Parker et al. collect some "at risk" income, despite this horrendous showing.

I believe it is time for a very big change in our thinking, our negotiations, our representation, our compensation, the level of appreciation for the fantastic job we are all doing day in and out, and especially the public perception of the professionalism of this industry.

I am sick of cutting corners...if the price of a ticket needs to go up, then it needs to go up. No more "min fuel" legs, MEL laden aircraft, "commuter mentality" agents, catering "shortages", or any of the other crap that seems to be becoming the norm in this industry in general (and THIS airline in particular!)

We need to start taking the time and pride in providing a quality SERVICE product, and we need a union that will negotiate a contract to allow us to accomplish this, and which will "go to bat" for us when we are threatened or "disciplined" for doing exactly that for our customers.

Let's get on with fixing this airline, restoring our pride and professionalism, and collecting a fair and motivating compensation so we can stop worrying about our financial commitments, and devote our "work time" to those who will pay us for the best service in the industry. We can't change our management's desire to "cheapen" the airline experience, but we CAN make our customers realize why they should pay a premium for our services.

Whoever wins the election, it is time to rebuild our employees esteem, our customers image of this airline, and our own self respect. It is going to take a change in tactic, no matter who wins.

So LET'S GET ON WITH IT! Look forward, MOVE FORWARD!


View attachment 7385

 

[songbirdstew]

I just blew breakfast on my laptop. Shame on them. This "reward" bonus they get for sitting in an office and making crappy decisions while the front line employees work their butts off is disgusting.

 

[happy01]

From the USAIRway's LGA base.


Fellow "LGAites",

Please take the time to read the attached file, which is the SEC filing by US Airways describing the Executive Long-term Incentive bonus plan. Here is where I become amazed.....
Our "humble" executive team has been awarded a new incentive plan (they just completed a plan year as well...I wait to see how our executives made out under the last "incentive plan". ) Read this document CAREFULLY, and try to keep your blood from boiling.

In a nutshell, I find the "targets" and the corresponding bonus "awards" very interesting. For example, these individuals are eligible for cash bonuses of up to 200% of their base salaries, based on a number of performance results (baggage complaints vs. our "peer" airlines...which oddly enough comprises the smallest portion of the award!, on time results, etc.) and financial results (you might think stock price would be a factor?) Clever that the BASE measure for the stock price just happens to be near a 52 week low, and will then compare to where it is three years from now... why not 1 year from now?

So here is where the heartburn settles in.... IF we finish #1 among our peer group (consisting of 12 airlines) then the exec.s "win" a bonus of up to 200% of their salary. If we finish exactly IN THE MIDDLE of the group (that would be an "average" performance for most of us!) then the Senior VP collects an extra 70%, the Exec. VP pockets an extra 100%, the Pres grabs an extra 115% whilst our "esteemed" CEO walks with a cool 125% above and beyond his normal salary. AND THIS IS THEIR TARGET... to finish DEAD MIDDLE of the pack! If we finish in the BOTTOM 1/3 of the pack, these folks STILL receive an EXTRA 30% (SVP), 43% (EVP), 49% (Pres) and 54% (CEO)! I believe in the past Mr. Parker referred to these and other bonuses as "at risk income."

So maybe our next contract should follow the same intelligent thinking; If a flight departs OR arrives "on time," ("average" or targeted times by the company) then all crewmembers should receive bonuses of: 70% for all F/A's beside the "A"; 100% for the "A" F/A; 115% for the F/O; and 125% for the CAP. If we depart or arrive ahead of schedule, the bonuses go up. If we fall to a point of departing or arriving no later than 2 of our 3 "competitors" (or 8 of 12) than we should still collect an extra 30%, 43%, 49% and 54% ABOVE our base salaries.

We could carry that forward to our checkrides, computer based training, attendance, and check-in times as well.

I find it ludicrous that our management (and their "buddy" board members comprising the compensation committee) should reward themselves for BELOW AVERAGE performance, while they not only EXPECT, but DEMAND above average performance from the employees, EVEN AFTER CUTTING THEIR SALARIES AND BENEFITS!!!!

And you want to talk about our CEO's performance over this last year? I would HOPE that our shareholders get a bit upset by the performance of the stock (from a recent high of $65 per share, to a 52 week high of $43 per share, to the current $9.25 per share). Let's wait to see if Mr. Parker et al. collect some "at risk" income, despite this horrendous showing.

I believe it is time for a very big change in our thinking, our negotiations, our representation, our compensation, the level of appreciation for the fantastic job we are all doing day in and out, and especially the public perception of the professionalism of this industry.

I am sick of cutting corners...if the price of a ticket needs to go up, then it needs to go up. No more "min fuel" legs, MEL laden aircraft, "commuter mentality" agents, catering "shortages", or any of the other crap that seems to be becoming the norm in this industry in general (and THIS airline in particular!)

We need to start taking the time and pride in providing a quality SERVICE product, and we need a union that will negotiate a contract to allow us to accomplish this, and which will "go to bat" for us when we are threatened or "disciplined" for doing exactly that for our customers.

Let's get on with fixing this airline, restoring our pride and professionalism, and collecting a fair and motivating compensation so we can stop worrying about our financial commitments, and devote our "work time" to those who will pay us for the best service in the industry. We can't change our management's desire to "cheapen" the airline experience, but we CAN make our customers realize why they should pay a premium for our services.

Whoever wins the election, it is time to rebuild our employees esteem, our customers image of this airline, and our own self respect. It is going to take a change in tactic, no matter who wins.

So LET'S GET ON WITH IT! Look forward, MOVE FORWARD!


View attachment 7385

You also have to check out the FAQ's from 4-3-08, it states that under this new "plan" approximately 3000 more employes(managers, supervisors, some senior individual contributors) are being moved into the profit sharing pool. They used to be included in some other incentive program, but now there will be that many more employees to split the profit sharing pool. I'm sure it was probably covered in the plan filed w/the SEC, but it's in plain english in the FAQ's on compass, the hub, and wings.
It really seems like the execs are finding more creative ways to profit in the lean times. Even if US finishes in the bottom of the pack they get some kind of a bonus, but for there to be profit sharing next year the company has to turn a profit in every quarter. This really seems a little biased, and not in the employees favor. I think the employees need the bonus a little more than the execs need an extra million or two.

 

[Hey.. Chill Out]

yeah yeah, DP and CO have been filling their pockets for 3 years now, we complain, yet we don't do a slowdown.

I guess we just have to develop a sense of humor then!

 

[allstrike]

I just blew breakfast on my laptop. Shame on them. This "reward" bonus they get for sitting in an office and making crappy decisions while the front line employees work their butts off is disgusting.

Yep and the friggin IAM ask us to vote away profit sharing as this was being filed :down: :down: :down:

 

[SolidCactus]

Well you know, they all have to line their pockets as much as humanly possible this year, because the democrats are coming...

 

[jetster]

At least we know that all is not lost. The profit sharing money that goes back into the company coffers will now be available to line the pockets of the executives and managers. We should all have representatives that are willing to stand up to these thieves and put them in the place they all belong.

 

[700UW]

There has been no profit sharing money put aside this year, the 1st quarter results have not been released and in case you havent heard the news, US is not expected to make a profit this year.

No profit=no profit sharing money.

 

[sharktooth]

Well you know, they all have to line their pockets as much as humanly possible this year, because the democrats are coming...

Accountability would be nice for a change, after seven plus years of welfare for corporations paid for by the taxpayer.

 

[roadtrip]

Hey Shark!

Excellent Post! All groups should read this and see what kind of shell game management plays us as a bunch of fools.

While Parker and his Hit Squad stuff there pockets with all sorts of Contract Protection and Compensation they want concessions from the work groups who still have not gotten a merger T/A.

For goodness sake everyone pour yourselves a Hot Cup of Coffee and Wake up.

Fight for Fair Contracts dont settle for lies and scraps and misdirection from upper management

Whats good for management is just as good for the employees who are the ones who really run this airline

 

[sharktooth]

Hey Shark!

Excellent Post!

I wish I could take credit.

I believe you are going in the right direction. One must ask oneself, why are these people being compensated so well when the airline sinks deeper into the dumper?

Assuming all the players, executives and board members, are relatively rational, one can realistically conclude that the executives are being rewarded for something other than "running an airline". Once one gets their mind to that place, one can look around and see that the major activity for an operation like Tempe is to manage, for want of a better word, leases. Running an airline is secondary, maybe.

So, if the executives are being rewarded by the creditors and shareholders, to whom do their loyal efforts lie? If actions truly speak louder than words then a reasonable person can only conclude that it is not the airline.

Once you adopt that model for behavior, one can see that what once seemed irrational and incompetent becomes rational, much as it no longer comports with employees old concept of themselves as an "airline entity". By doing that, however, one can finally then initiate potentially successful strategies to negotiate, something some unions and associations like ALPA could never get past, still dragging the past and out-moded concepts as baggage.

 

[safety stud]

There has been no profit sharing money put aside this year, the 1st quarter results have not been released and in case you havent heard the news, US is not expected to make a profit this year.

No profit=no profit sharing money.

Maybe you just don't get it.
Profit sharing was put in place by the East contracts from previous BK's. East being the case only. The east allowed the west to reap the benefit of the companies past prosperity. It is the present management team that is opening the envelope and trying to spread the wealth.

I probably wouldn't have a problem with giving encentives to management as long as they were held responsible to their actions. That being the case, DP and SK should have been gone a long long time ago. Bottome line is that profit sharing should go to the front line employee's who are the ones that bring the customer back each and every time.

Just my opinion...

 

[LSS]

All this and the employees get a whopping $50 for improved performance... Oh my... the generosity of our management is staggering!

 

[YVINTERN]

Fiornello LaGuardia turned in his grave when he heard this cesspool of a decision by DP... This sounds like a summer version of Scrooged to me.

 

[Hello Newman]

There has been no profit sharing money put aside this year, the 1st quarter results have not been released and in case you havent heard the news, US is not expected to make a profit this year.

No profit=no profit sharing money.

And on what do you base this?