top 5 airline exec pay 2004/2005

[fatherabraham]

The following is excerpts from a recent article from the Atlanta Journal-Constitution.



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AIRLINE EXEC PAY
Most airline executives' pay fell as the industry struggled last year with record fuel costs or bankruptcy cases, but it was a different story for management at US Airways, which emerged from Chapter 11. The chart shows total compensation for the top five executives.


2004
2005

US Airways
$7.86 mil
$29.97 mil

Northwest
$13.68 mil
$11.37 mil

American
$5.12 mil
$10.23 mil

AirTran
$8.79 mil
$4.76 mil

Southwest
$8.86 mil
$4.48 mil

United
$4.40 mil
$4.42 mil

Continental
$10.80 mil
$3.24 mil

Delta
$6.78 mil
$2.51 mil

JetBlue
$2.66 mil
$1.55 mil


Note: Includes cash salaries, bonuses, long-term stock awards, stock options and other compensation. Some airlines later canceled some stock or stock option awards as part of Chapter 11 reorganizations. United 2005 figure does not include restricted stock executives got after that carrier emerged from bankruptcy.

Source: Company proxy statements

Delta also has skipped retention bonuses and other incentives often used by companies in bankruptcy court.

But there could be a pot of gold at the end of the rainbow for Delta officers, if pay packages at other carriers that recently emerged from bankruptcy are any guide.

After engineering America West's merger with US Airways to bring the latter out of Chapter 11 last year, the top five managers at the combined carrier — mostly America West folks — collected cash, stock options and other compensation worth roughly $30 million, according to company filings.

Likewise, when United Airlines emerged in February, four of the carrier's top managers picked up restricted stock in the restructured company with a current market value of about $46 million.

United estimated that it will distribute $163 million worth of stock-related compensation to key employees and directors this year. About 400 executives and managers got an 8 percent stake in United as part of its reorganization plan, which also divided new shares among creditors, union employees and new investors.
:down:

 

[Dog Wonder]

We're number 1, we're number 1.

 

[pilot]

Let's see, the employees make less than any major out there and the executives make more than any major out there.

Seems totally ok to me.

How about it 320? Seem ok to you too. Those damn RC4 did this to us. Damn them.

pilot

 

[Dorf]

Let's see, the employees make less than any major out there and the executives make more than any major out there.

Seems totally ok to me.

How about it 320? Seem ok to you too. Those damn RC4 did this to us. Damn them.

pilot

Just get any deal! LOL

Dorf

 

[Henderfuzz]

The following is excerpts from a recent article from the Atlanta Journal-Constitution.



*********************************************


Well lets see what it appears to me that if you take the combind salaries of both companies it would seem to be larger than all the others. I may be wrong here but this number appears to include the salaries of duel VPs and such.
So this may explain the large number here.
Especially since we are talking about 04 verses 05.

Now dont get me wrong Im not defending large compesations for our upper management here just trying to figure out why that number seems so large.

 

[pilot]

Let me explain it to you clearly.

Our upper management is taking more money out of this company than the upper managements are taking out of there companies.

Why do you have such a hard time understanding that? Our guys and the BOD of U think they are worth substatially more than the management of other airlines. However, the employees of U are not.

Seems pretty understandable to me.

pilot

 

[jack mama]

LCC did post a profit, don't they deserve it?

 

[MarkMyWords]

Henderfuzz is right. The comparison of 04 and 05 isn't a fair comparison. In 05 we had 2 of everything. 2 CEO's, 2 of every VP, etc. Included in that number may also be the severence packages for those that were not invited to the new company, which would push that number even higher then a "normal" year.

The devil is in the details......

 

[Prince of PAWOBs]

Henderfuzz is right. The comparison of 04 and 05 isn't a fair comparison. In 05 we had 2 of everything. 2 CEO's, 2 of every VP, etc. Included in that number may also be the severence packages for those that were not invited to the new company, which would push that number even higher then a "normal" year.

The devil is in the details......

Good point! And if you cut the figures in half, it's still roughly $15 million, which is still the highest.

 

[MarkMyWords]

True.....but you can't just cut it in half. Look at the severence packages that would have been paid to the US Executives. That would definitly distort the numbers.

 

[soc-hpjester]

Doug deserves whatever the board will allow. He earned it.

 

[fatherabraham]

Way I read it is top 5 is top 5.

"After engineering America West's merger with US Airways to bring the latter out of Chapter 11 last year, the top five managers at the combined carrier — mostly America West folks — collected cash, stock options and other compensation worth roughly $30 million, according to company filings."

 

[Hawk]

Once again this journalist didn't research the details. I know the true facts. The executives acctually took a salary reduction during the BK process. A more accurate comparision would be to look at the executive salaries in 2004, Airways was in the middle of the group. One can't compare the 2005 salaries as it is not comparing apples with apples. There were many factors that contributed to this number that has been stated in this thread. This number is grossly inaccurate.

As I have stated before in previous postings, Airways had to implement a rentention plan to keep the talent at CCY. You can't operate an airline without executives. The executives were compensated below market value in the DC/VA labor market. The bottom line is that the executives at CCY played a vital role in the success of the current company. Labor should thank them for their dedication and passion in keeping the airline on track to emerged from BK.

 

[700UW]

Gee I remember seeing you in court and your experts testified Lakefield did not take a pay cut of his $425,000 salary, you know his base salary which was more the Kelly and Neeleman.

Lets see B6 and WN were both profitable and US was not.

 

[pilot]

Thank you executives! Thank you! Your passion and dedication are unbelievable. Thank you!

You truly deserve more than what you've been paid. 2 trips into and out of BK, the loss of tens of thousands of jobs, pensions (not yours of course) being scrapped, losing tens of BILLIONS of dollars over the years, jets being parked in the desert, stock being declared worthless, and vendors being hosed for tens of millions of dollars owed them. I'm certain I missed a few more of your vital successes but somehow most of us will remember them.

Yes, a heartfelt Thank You! For nearly leading this airline into oblivion. But the left over employees had little to do with the success. The pay cuts, pension gutting, work rule changes, and benefit cuts were YOUR doing. Thank YOU for saving this airline using our backs. Thank you! We owe you more than we could ever repay. I'm just glad you are getting your retention rewards and stock options. Certainly the employees are not worthy.

Please feel free to take as much as you possibly can. Without your management expertise we surely would be in much worse shape than with it.

Thank you for your dedication and passion. And thank you Hawk for reminding us of just who is responsible for this airline success story.

pilot