Special Jetwire


Oct 10, 2009
[SIZE=11pt]Dear Fellow Team Members,[/SIZE]
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[SIZE=11pt]Today we filed American’s proxy statement. A proxy statement is filed annually by public corporations to provide investors with insight into a company’s board of directors, its governance structure, and items to be voted upon at the annual meeting. It also includes details on executive compensation. As we always have done, I wanted to take this opportunity to directly explain to you how I am compensated and how it is reported in the proxy statement.[/SIZE]
[SIZE=11pt]My compensation this year is much easier to explain than it has been in the past because on May 1, 2015, we changed my pay structure to be entirely stock-based. I no longer receive a base salary, an annual bonus payment or any other cash compensation. Instead, I receive a grant of American Airlines stock in April each year. That stock grant vests over three years, meaning I only receive it all if I’m here for three years, and it only holds value if American Airlines is successful.[/SIZE]
[SIZE=11pt]In 2015, I received a cash salary until May 1 and I also received a final cash payment from a legacy US Airways long-term compensation program. In April, I received a stock grant of $10.3 million. Those amounts, along with American Airlines stock dividends, led my total reported compensation for 2015 to be $11.4 million.[/SIZE]
[SIZE=11pt]When compared to my peers (the CEOs of Delta and United), this total is 37% lower than the average of their 2014 compensation. As we said at the time of the merger, so long as our frontline team members are working at rates well below their peers, I should, too. We have rectified that issue for most of our team as we have reached new joint collective bargaining agreements, but we are still working on joint agreements with several of our TWU-IAM represented team members.[/SIZE]
[SIZE=11pt]Whether my compensation is lower than my peers’, or lower than prior years, or paid only in stock, it is still a significant expense to American Airlines and our shareholders. With this compensation comes responsibility – a responsibility to our customers and shareholders, but most importantly, a responsibility to all of you. I take that responsibility very seriously, and am committed to working together with all of you to make American all it can be.[/SIZE]
[SIZE=11pt]Another piece of information disclosed in the proxy statement is that I no longer have an employment agreement, or contract, with the company. This was done at my request, because it didn’t seem right to me that I should be the only person at American with an employment contract. The contract protected me against a number of things that I don’t think I should be protected against – such as if I get fired or if unhappy shareholders gain control of the American Board of Directors. To be crystal clear, just because I don’t have a contract doesn’t mean I intend to leave American soon; rather it is just another way of demonstrating how much I enjoy what I do, my excitement about our future, and how privileged I feel to be working with all of you at American Airlines. Nothing about having a contract felt like a shared commitment to working together with this amazing team to build something great for the long term.  [/SIZE]
[SIZE=11pt]We have a bright future ahead of us and I am so fortunate to be working with all of you. Thank you very much for your support and your commitment to American Airlines.[/SIZE]
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[SIZE=11pt]Ok Doug, although you failed to mention it, and may not be directly related to you current AA salary, $30 million has you set for life.[/SIZE]
[SIZE=11pt]And by the way, you have multi millions still sitting there in stock options if you need a little cash.[/SIZE]
American Airlines chief executive Doug Parker earned $4 million in a stock sale made on Monday, according to a government filing.
Parker has been selling thousands of stock appreciation rights, which are similar to stock options, that he received when he was chief executive of US Airways between 2006 and 2009. The stock rights are set to expire in the next year and will be worthless if he does not sell them before their expiration date.
This is the second sale of the year. In January, he gained $4.3 million in the monthly stock sale. He plans to sell the stock rights in groups throughout the year. In 2015, Parker made seven stock sales for a total of $30 million as part of a divestiture plan he outlined in June.
With the most recent sale, Parker sold 113,090 stock rights at prices between $38.94 and $39. After the sale, Parker continues to hold 1,398,511 shares of American stock [ticker: AAL]. American’s shares closed at $39.38, up 39 cents on Monday.

Read more here: http://www.star-telegram.com/news/business/aviation/sky-talk-blog/article57793753.html#storylink=cpy
CEO's will never understand the contempt their underlings feel for their arrogant and condescending drivel when they compare themselves to their peers, who are equally over overpaid with exorbitant executive to peon ratios. I've always questioned the integrity of anyone that thinks they deserve to make an 8 figure salary, or "stock based pay structure", while they put their employees through protracted and bitter negotiations to make a decent wage. 
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no matter what he does or get paid - folks on here will not be happy until he is gone and company is in liquidation
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jcw said:
no matter what he does or get paid - folks on here will not be happy until he is gone and company is in liquidation
He needs to chop off his left arm, put it under airtight glass and send it off on a roadshow. Come see the Parker arm.
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So it's the company mouthpiece jcw who loves handing out the red, even if it's fact. Someone seems pretty insecure... B)
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jcw said:
no matter what he does or get paid - folks on here will not be happy until he is gone and company is in liquidation
As if he is putting himself at financial risk by declaring himself an "at will" employee.  Doug has been compensated well over $50 million dollars in the last 10 years.  In other words, kinda like winning the lottery.  I would hardly consider this move as some sort of sacrifice. 
For the record, I don't care how much he gets paid - this announcement today is nothing more than a publicity stunt.  Serves no other purpose.
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jcw said:
no matter what he does or get paid - folks on here will not be happy until he is gone and company is in liquidation
Is that what you think we want? Replacing Parker with another CEO with the same mindset and another bankruptcy? Get real.
We don't care who the CEO is. Like Birdman said above, they are all pretty much the same these days.
We want an industry leading contract which management is perfectly able to push across the table today.
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jcw said:
no matter what he does or get paid - folks on here will not be happy until he is gone and company is in liquidation
is that you Doug . Let's see I've been living under pay cuts for over 13 years now. I mean come on even in December 2014 Doug could of giving every one a raise. But no it was tied into if you had a jcba are not. They could of gave raise And then we could of started from there forward on a jcba. That is many of the reason people are not happy. I do not want the company to liquidate. But would love to see the americanwest/us air management gone. So Parker is getting richer we are under a bk contract, and to show bad faith Parker hires glass a union buster to negotiate the twu maint and related and fleet. Parker is nothing more then a used car salesmen. And flip flops delta ual 7 percent down to 3 percent now even. And you can't understand why people are mad.
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Nice to see DP is now and at will. Along with 100,000 folks....uhh when did 100,000 employees be at will given we are union? As he need not worry bout money for life he set. Now is time for him to live up to his word n give us all a dam good contract no concessions etc.
If the company had given you guys raises outside the CBA. I guarantee people would be on here complaining about how the company is subverting the CBA process and is trying to buy members off to get the (a lessor) contract to pass.
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  Adam Levine-Weinberg
Adam Levine-Weinberg is a senior Industrials/Consumer Goods specialist with The Motley Fool. His primary expertise is in covering airline stocks, but he also follows auto, retail, and tech stocks. Adam is an avid stock market-watcher and a value investor at heart. He graduated from Swarthmore College in 2007 with a BA with High Honors in Political Science, and also holds an MA in Political Science from the University of Chicago. He currently lives in Chicago, Illinois.

Doug Parker Chairman and Chief Executive Officer
Doug Parker was named chairman and chief executive officer in 2013. He oversees American Airlines Group and American Airlines, its principal subsidiary company.
Previously, Parker was chairman and CEO of US Airways. Before the merger of US Airways and America West Airlines in 2005, he was chairman, president and chief executive officer of America West. Parker became the CEO at America West just 10 days before Sept. 11, 2001, and led the carrier through the crisis.
Under Parkers leadership, US Airways achieved record revenue growth, operational performance and profit margins that outpaced most industry peers. Parker has been a vocal proponent of airline industry consolidation, which provides a more stable and competitive industry for employees, customers, communities and stockholders.
Parkers experience prior to joining America West in 1995 includes four years with Northwest Airlines as vice president, assistant treasurer and vice president of Financial Planning and Analysis. From 1986 to 1991, he held a number of financial management positions with American.
Parker received a Bachelor of Arts degree in economics from Albion College in 1984 and a Master of Business Administration degree from Vanderbilt University in 1986.



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