Arpey and AA execs snag rich incentive plan
07-27-2005, 04:04 PM
#1
Gets Weekends Off
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Joined APC: Feb 2005
Position: 737 CFI
Posts: 390
Arpey and AA execs snag rich incentive plan
AMR gives Arpey new incentive plan
09:01 AM CDT on Wednesday, July 27, 2005
By ERIC TORBENSON / The Dallas Morning News
Fort Worth-based AMR Corp. reached a new long-term incentive plan with its chairman and chief executive
officer and other key employees that could be worth tens of millions to each officer, according to
regulatory filings.
The parent company of American Airlines Inc. granted Gerard Arpey 140,000 "performance units" as part of
the plan. Those units, each representing the cash value of an average AMR share during a specific time,
will vest based on Mr. Arpey remaining with the company over a period of years.
Mr. Arpey also received 58,000 shares of AMR stock on Monday in a separate filing related to the company's
bonus programs. Those shares vest in 10 years under an incentive program outlined in the Securities and
Exchange Commission quarterly filing Tuesday evening.
Mr. Arpey stands to get a similar number of shares under that portion of his long-term incentive plan
until 2009.
AMR's board also approved terms for a long-term incentive plan that will reward Mr. Arpey and key
company officers more stock units based on AMR's share performance compared with competitors.
A separate deferred incentive program granted Mr. Arpey 24,000 additional units on Monday that vest in
2008.
Mr. Arpey also received 95,000 more traditional stock options at a price of $13.67 per share, slightly above
AMR's Tuesday closing price of $13.60. For those shares to have value for Mr. Arpey and other officers
who received smaller numbers of stock options, AMR shares must rise in value.
According to the filings, the programs were put into place by AMR's board to keep the carrier's officers
and reward them for staying. AMR has lost several top executives to other airlines and other industries in
the past four years, including two chief financial officers.
Mr. Arpey since his appointment as chief executive in 2003 has refused pay raises and took a slight pay cut
last year as his carrier lost money and will likely post a loss in 2005. His base pay and bonus trail
those of top executives at other major airlines.
Executive pay at American remains a controversial issue because former chairman and chief executive
Donald J. Carty resigned in April 2003 when it was revealed that the company had not told labor leaders
about incentive programs for executives or about a program to protect pension payments from bankruptcy
while at the same time extracting $1.62 billion in annual concessions from those unions.
09:01 AM CDT on Wednesday, July 27, 2005
By ERIC TORBENSON / The Dallas Morning News
Fort Worth-based AMR Corp. reached a new long-term incentive plan with its chairman and chief executive
officer and other key employees that could be worth tens of millions to each officer, according to
regulatory filings.
The parent company of American Airlines Inc. granted Gerard Arpey 140,000 "performance units" as part of
the plan. Those units, each representing the cash value of an average AMR share during a specific time,
will vest based on Mr. Arpey remaining with the company over a period of years.
Mr. Arpey also received 58,000 shares of AMR stock on Monday in a separate filing related to the company's
bonus programs. Those shares vest in 10 years under an incentive program outlined in the Securities and
Exchange Commission quarterly filing Tuesday evening.
Mr. Arpey stands to get a similar number of shares under that portion of his long-term incentive plan
until 2009.
AMR's board also approved terms for a long-term incentive plan that will reward Mr. Arpey and key
company officers more stock units based on AMR's share performance compared with competitors.
A separate deferred incentive program granted Mr. Arpey 24,000 additional units on Monday that vest in
2008.
Mr. Arpey also received 95,000 more traditional stock options at a price of $13.67 per share, slightly above
AMR's Tuesday closing price of $13.60. For those shares to have value for Mr. Arpey and other officers
who received smaller numbers of stock options, AMR shares must rise in value.
According to the filings, the programs were put into place by AMR's board to keep the carrier's officers
and reward them for staying. AMR has lost several top executives to other airlines and other industries in
the past four years, including two chief financial officers.
Mr. Arpey since his appointment as chief executive in 2003 has refused pay raises and took a slight pay cut
last year as his carrier lost money and will likely post a loss in 2005. His base pay and bonus trail
those of top executives at other major airlines.
Executive pay at American remains a controversial issue because former chairman and chief executive
Donald J. Carty resigned in April 2003 when it was revealed that the company had not told labor leaders
about incentive programs for executives or about a program to protect pension payments from bankruptcy
while at the same time extracting $1.62 billion in annual concessions from those unions.
07-28-2005, 05:36 PM
#2
Gets Weekends Off
Joined APC: Feb 2005
Position: Lazy-boy Captain
Posts: 242
Good for them
I for one am glad to see a bonus paid out.
Since AA made a little money this last quarter all the better.
Arpey is very underpaid anyway. He does a very good job and he should be paid for it.
I do a good job and I am paid well (would accept more if offered)
AA and SWA showed a profit last qtr. I am all for paying good money for a good job.
If your company did poorly then no bonus to them
Just my opinion.
Since AA made a little money this last quarter all the better.
Arpey is very underpaid anyway. He does a very good job and he should be paid for it.
I do a good job and I am paid well (would accept more if offered)
AA and SWA showed a profit last qtr. I am all for paying good money for a good job.
If your company did poorly then no bonus to them
Just my opinion.
07-29-2005, 09:42 AM
#3
On Reserve
Joined APC: May 2005
Position: Horizontal on couch
Posts: 24
I totally agree with you when you say do a good job and get paid well. Unfortunately the AMR stepchild American Eagle is treated like Cinderella. The diamond in the rough, pilots work extremely hard, company always profits, but the pilots are paid crap, There's just no love for the Eagle crews 
. If it wasn't for the love of aviation many more would have left. Its sad but its true
. If it wasn't for the love of aviation many more would have left. Its sad but its true
