AMR chief gets 23% raise
07-25-2006, 08:14 PM
#1
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AMR chief gets 23% raise
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
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
07-26-2006, 12:49 PM
#4
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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.
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.
07-27-2006, 08:05 AM
#6
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Originally Posted by Tinpusher007
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.
07-27-2006, 12:45 PM
#7
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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.
07-27-2006, 03:31 PM
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Originally Posted by GauleyPilot
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.
08-01-2006, 06:14 AM
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Originally Posted by Whaledriver101
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???
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!
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