Parker Turns Down Bonus

SCUBAgal

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Feb 6, 2006
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US Airways CEO Declines 2005 Annual Incentive Payment
March 9, 2006



US Airways today announced internally that CEO Doug Parker has declined his 2005 bonus payment. The airline’s Board of Directors recently approved payouts for eligible employees under America West’s 2005 Annual Incentive Program. As part of that program, the Board awarded Doug a 2005 cash incentive payment of $770,000, which he declined. As part of this same program, eligible former America West employees at grades 23 and above will receive payouts. Details of individual payments will be available from your direct supervisor early next week.


CEO Comments

Doug stated, “I am pleased that the America West Airlines annual incentive plan was achieved for 2005. Our team certainly earned and deserves this recognition. While I am honored by the Board’s recognition of my own contributions, I have chosen to decline this award. As CEO of a larger merged airline that has many employees who have taken significant pay cuts and many others still on furlough, I have communicated to our Board that I would prefer to receive an annual cash incentive when our employee profit sharing plans are paying dividends too. In 2006, the annual incentive program will only pay if the profit-sharing plan in place for the majority of our employees pays out.



“I do not take this step lightly as I strongly believe our team has earned this reward. I recognize, however, that deciding to lead the former US Airways team comes with some expectation of shared sacrifice. Unlike most of the team, my total compensation includes some other key elements, including a Long Term Incentive Plan. That Plan paid out a significant amount for 2005 due to America West’s industry leading stock performance from 2002 to 2005. Ultimately, I look forward to the day when profit sharing is a consistent part of our culture and appreciate the efforts of all of our employees as we work to integrate our two airlines.â€￾
 
WOW! Is this an aviation first? I agree with Twicebaked that this does indeed speak of the character of the man.
I agree ..but there will probably be some people that say something "Oh, he's only doing it to make himself look good"
 
Parker and key individuals did the same thing after 9/11 - but before you start singing and dancing his praises if you read the SEC Filings for the years after 9/11 you will find that the board then paid them bonuses to bring them up to industry average for the time that they declined the pay. But it does look good in the press for now doesn't it.

Bill Franke with a candy coating.
 
To quote someone on A.net - "Too bad the former US Airways management wouldn't be caught dead turning down a pay raise or bonus."

This does truly say something - OK, yes, I know I'm sure he's got lots of money, but $770,000 is nothing to sneeze at even for a multi-millionaire. You could buy a Pontiac Riley and some spares with that.

The message couldn't be clearer. He's honestly working to set himself apart from the image of U management (and airline management as a whole) as out-of-touch and self-serving.

I say he should put that money toward a down-payment on an Embraer 190 - The Spirit of Doug :lol:
 
Parker and key individuals did the same thing after 9/11 - but before you start singing and dancing his praises if you read the SEC Filings for the years after 9/11 you will find that the board then paid them bonuses to bring them up to industry average for the time that they declined the pay. But it does look good in the press for now doesn't it.

Bill Franke with a candy coating.

AWA Contract...I respect your opinion, but and this is a big one...I think your totally offbase on this one. Sure executives got bonus post 911 premerger...BUT SO DID ALL NON UNION NON CONTRACT EMPLOYEES in the pay grades mentioned above. Sorry but the IBT wasn't smart enough to join in the profit sharing. For heaven's sake look at the whole picture not just the IBT's lack of foresight.
 
Say what you want but there is a difference between passing on a bonus and just deferring it till no one is looking. As a bargining unit member do I need to explain the term "past practices"
 
Say what you want but there is a difference between passing on a bonus and just deferring it till no one is looking. As a bargining unit member do I need to explain the term "past practices"

Contract, those are serious allegations. Can you provide proof?
 
"I would prefer to receive an annual cash incentive when our employee profit sharing plans are paying dividends too."

Right out of Parker's mouth. So what if he gets it later??? He said when WE get in on the action. Hardly anything to look at negatively.
 
Say what you want but there is a difference between passing on a bonus and just deferring it till no one is looking. As a bargining unit member do I need to explain the term "past practices"
i am with u....i am not being negative just agreeing with the "obvious"