GREAT POINTS FROM THE PHL UPDATE! We've noticed Management gets very sensitive when you call their salaries and bonuses into question. Their total compensation is derived by a very complex shell game that makes pinning them down on the facts a pretty daunting task, but here are some numbers they probably can't dispute. Last year, Forbes reported Doug Parker's previous five years' compensation at $21.75 million. That's $7.98 million more than AMR's Gerald Arpey made, and a whopping $16.27 million more than Southwest's Gary Kelley earned for his industry-leading performance. We remain unclear as to what Mr. Parker actually does to merit nearly four times Mr. Kelley's compensation. In our view, Southwest runs an exemplary operation, pays all of its employees very well, and treats them with respect. US Airways pays deplorable wages, keeps a running tally of about 400 outstanding grievances, and disrespects you every month during negotiations. The disparity here is, in our view, repulsive. It's even more so when you listen to Mr. Parker claim time and time again that US Airways is somehow uniquely unable to compensate you like other major airline pilots.
