AMR chief to get 23% raise

11:10 PM CDT on Tuesday, July 25, 2006

AMR Corp. chief executive officer Gerard Arpey, whose American Airlines is the world's largest carrier, will get a 23 percent raise and other long-term pay incentives to bring him in line with his CEO peers.

Mr. Arpey, 47, will earn an annual base salary of $650,000, up from $526,620, according to a federal filing Tuesday. The AMR board's compensation committee found his pay trailed that of executives at similar companies, the filing said.

The raise comes amid strains in the relationship between Mr. Arpey and American's unions, which were angered by $100 million in executive bonuses triggered by AMR's rising stock price.

American asked its pilots' union July 21 to start early contract talks in an effort to improve productivity.

Shares of AMR rose 55 cents to $23.55. The stock has gained 75 percent in the past year.

Bloomberg News

 

Hey .....wait just a doggone minute!

I just gave 23% pay cut in 2003!. I guess I found
out where my 23% went!
I am glad for him that it was not a customer satisfaction raise!

 

Wasn't he just going on about how he didnt take part in the bonus fiasco of a couple months ago? I guess he just made up for it.

 

With that, AMR just gave APA all the ammo they need to ask for more money in these early contract talks that they want to hold. Credit where credit is due, AA did avoid BK and are now posting profits, so Aprey does deserve credit for that. However, the frontline employees are the ones who truly work for the airline day to day.

It's funny though, the article states that he is getting this raise because he trails his CEO peers in pay. However when pilots try to make this same argument, so many people are there to say that they are greedy and need to get used to the new reality. People also say that flying a plane safely everyday is simply a pilots job and they are therefore not entitled to above avergae pay because of it. One could make the same argument that a CEO's job is to run an airline so as to make profits. Food for thought. It will be very interesting to see what Aprey and co. have as an excuse when the pilots ask for their share of the pie.

 

I guesshe has forgotten about 2001, and 2003. Employees gave all, so I guess he thinks he can go ahead and take it all

 

These scumbags won't even give an excuse (and if they do, it will be pathetic). They have no problem sleeping at night in their $6000 sheets that they got from taking from others.

 

The AA CA that writes in FLYING seems to say flattering things about Gerry, since he owns and flys single engines. Don't shoot me, PLEASE. I have no opinion. I always wondered what other pilots at AA think of his articles.

 

I enjoy reading his articles too. However, I don't believe he would use his column in that magazine to voice his opinions about AA particularly if they were negative.

 

Come earnings announcement time I guess AMR will report a profitable quarter. Certainly you wouldnt take a raise while losing money!!

Time to grab some AMR stock for the big earnings announcement???

 

Sure you would. Look at Dougie Steal'in at NWA. He recieved over $4 million in salary and options in '05!