US Airways top execs enter into new change-of-control deals

zflygrl

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Oct 7, 2005
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CEO Doug Parker, President J. Scott Kirby and other senior executives entered into new compensation agreements with the airline carrier to provide benefits in the event of a takeover or a merger that involved more than 50% of the voting power of the company. Under the agreements, the executives are entitled to payments equal to at least twice their annual base salary, or 200% for Kirby and chief operating officer Robert Isom, the Tempe, Ariz. carrier said in a filing. Several executives previously had change of control pacts with the company. The new compensation agreements come as the heads of several major airlines, including Parker, have noted that airline consolidation is only a matter of time. Shares fell 4.3% to $20.06 ahead of the filing.

US Airways Group IncLCC (NYSE) 20.06Change:-0.91-4.34%Volume:3.03M
 
November 30, 2007
US Airways Chief Executive Doug Parker has received a three-year contract extension until 2011 with no change to his salary, the airline said on Thursday.

Parker, who oversaw the merger of the old US Airways and America West Airlines in 2005, will earn USD$550,000 in base salary. Terms for cash bonuses and incentive payments have not changed.

In 2006, Parker received USD$880,000 cash bonus and a long-term incentive payment of USD$869,000, also in cash. He received other equity awards as well, the airline said.

US Airways shares lost 91 cents, or 4.3 percent, on Thursday to close at USD$20.06 on the New York exchange. The company's shares have dropped more than 60 percent so far this this year.

(Reuters)
 
Here is a letter to employees,

November 29, 2007



Dear Fellow Employee,



Today US Airways filed a Form 8-K with the Securities and Exchange Commission that provides information about my employment agreement as well as new executive Change in Control (CIC) agreements.



The filing of new CIC agreements is occurring now because the protection provided under the former agreements recently expired on the two-year anniversary of our AWA/US merger (Sept. 27, 2007). It’s typical for companies to provide certain severance protections for management employees who may lose their jobs during a takeover, merger or other change in control of the airline. In particular, as we’ve recruited new talent to our team from outside US Airways, it has become clear that CIC agreements are required to attract quality people. And although recent rumors of industry consolidation may make the timing appear suspect, I can assure you there’s nothing driving today’s filing other than administrative needs to put new agreements in place for our team.



Regarding my employment agreement, and as I’ve said in the past, it is always my intent to be open and honest about my compensation. In my renewed employment agreement, my salary, which has been the same since I took my job in 2001, remains at $550,000 per year. Other elements of my compensation, such as my bonus and current equity holdings, also remain unchanged.



Most employees know I am the only company officer who has an employment contract and this new agreement runs through December 2011. Many of the changes in my new agreement are administrative in nature (i.e., changing the name of the corporation to reflect “US Airways Group, Inc.†and also ensuring my contract complies with new federal laws that govern deferred compensation). The entire agreement is filed with the SEC so anyone who wants to read through it has that opportunity.



I should also note that all of our executive compensation programs are adopted by the US Airways Board of Directors’ Compensation and Human Resources Committee. This Committee takes a lot of time to compare our executives’ total compensation against the total compensation of their peers at other airlines, with an eye toward ensuring that our compensation programs are competitive.



I appreciate that the Board has expressed its confidence in me and I’m more than happy to formalize my long-term commitment to our employees, customers and shareholders. We’ve done quite a bit in a relatively short period of time and we have much more to come. Today our focus is on building the kind of operational performance that our employees want to deliver and that our customers deserve.



More details are available in the 8-K filed today and if you have questions, please send an e-mail to [email protected].



We just completed a terrific holiday weekend from an operational standpoint and I can’t thank you enough for all you are doing to take care of our customers during the next few weeks.
 
"In my renewed employment agreement, my salary, which has been the same since I took my job in 2001, remains at $550,000 per year."

Oh really??? In 2006, Parker received USD$880,000 cash bonus and a long-term incentive payment of USD$869,000, also in cash. He received other equity awards as well, the airline said.
 
"In particular, as we’ve recruited new talent to our team from outside US Airways, it has become clear that CIC agreements are required to attract quality people."

If these "quality people" from Management are as good as you say they are, then they'll have no problem finding another job then will they? Will these agreements be guaranteed to frontline agents at LCC in the event of a merger?

Don't feel bad, Leo Mullin's regime at DAL did practically the same thing with their golden parachutes and kickbacks right after they negotiated huge pilot paycuts and cut frontline ACS pay 10%, followed by an additional 9% less than a year later. Classy people.
 
Really? Well mine is the same as a new hire in 1985!


Just more half truths from Mr. Parker.
In 2006 alone, Parker received a $880,000 cash bonus plus a long-term incentive payment of $869,000 cash in addition to his $550,000 per year base salary.

While Mr. Parker makes it sound like he has just been getting by on his $550,000 per year base salary that has been the same since he took his job in 2001, he conveniently leaves out specifics of other elements of his compensation, such as bonuses and equity holdings awarded to him.

I for one am tired of hearing him tell his employees how honest he is, when in fact it really isn't the whole truth that he is telling.

The real truth is that he is making millions off of the sacrifice of his employees who would probably be happy to have the base salary they did in 2001 even without, cash bonuses, long-term incentives or equity holdings.



linemech
 
"This is like deja vu all over again."

Yogi Berra


"What would Drucker say today about US Airways, which guaranteed departing CEO David Siegal and his family medical coverage for life while eliminating health coverage for 28,000 employees and 18,800 retirees?"

We Will Miss You, Peter Drucker article
 
Take care of Doug.

He needs all of us to kick in to keep him living in the style he is used to.

When all is said and done I am sure he will give everything he has been given back to the ones who made his good life possible. He will take a twelve beer piss on all of us.

Not looking forward to the twelve beer piss?

Maybe it is time to grab those tiny balls and...
 
"In particular, as we’ve recruited new talent to our team from outside US Airways, it has become clear that CIC agreements are required to attract quality people."

What a pungent pile of manure.
 
So when do these QUALITY PEOPLE start....Hey Parker, how can you look in the mirror every morning :down: :down: :down:
 
I bet he goes...

*looks at the mirror*

"Yeahh Dougie...You're looking sexy today"...*licks his hair* "Ohh yeah babbyyyy"

*looks down at his belly*

"Aww baby...don't worry Daddys getting a new trainer" then he wonders why he has crappy trainers in PHX ;)

HELLO DOUGIE...THEY TRAIN PEOPLE NOT YOUR BEER BELLY!!!!
 
I bet he goes...

*looks at the mirror*

"Yeahh Dougie...You're looking sexy today"...*licks his hair* "Ohh yeah babbyyyy"

*looks down at his belly*

"Aww baby...don't worry Daddys getting a new trainer" then he wonders why he has crappy trainers in PHX ;)

HELLO DOUGIE...THEY TRAIN PEOPLE NOT YOUR BEER BELLY!!!!

Read the tea leaves folks! You can insult Doug and company all you want but he got his and we failed at getting ours! We have been bought and paid for and I sure hope it was worth it folks because WE are the ones who will pay the price. Wall street doesn't like uncertainty and it's just a matter of time now. Three cheers to the east and USAPA as always everything you touch you destroy!!! :down:

Get those resumes ready people we are gonna need them...