PCL Ceo gave himself a raise....
 

Quote:

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NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, Company and Executive, intending to be legally bound, hereby agree as follows:

1. Defined Terms; References. Unless otherwise specifically defined herein, each term used herein that is defined in the Agreement has the meaning assigned to such term in the Agreement. Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Agreement shall, after this Amendment becomes effective, refer to the Agreement as amended hereby.

2. Changes to Attachment “A”.

2.1 Base Salary. The Base Salary provision in Attachment “A” to the Agreement is amended by changing “$425,000” to “$675,000”.

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REALLY?! Arent we losing money?!

Seriously? Guess what, he wasnt the only one...

Quote:

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NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, Company and Executive, intending to be legally bound, hereby agree as follows:

1. Defined Terms; References. Unless otherwise specifically defined herein, each term used herein that is defined in the Agreement has the meaning assigned to such term in the Agreement. Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Agreement shall, after this Amendment becomes effective, refer to the Agreement as amended hereby.

2. Position. The Agreement is amended by changing “Vice President and Chief Operating Officer” to “Executive Vice President and Chief Operating Officer” in each place that such phrase appears in the Agreement, including in Section 1.2 thereof and in the “Position” provision of Attachment “A” thereof.

3. Base Salary. The Base Salary provision in Attachment “A” to the Agreement is amended by changing “$275,000” to “$400,000”.

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That $375,000 in raises going to TWO people in this company in a time when Management is proposing pay CUTs to all its labor groups...

Two words...

Shove it!

/ end rant

Entire SEC filing: http://phx.corporate-ir.net/phoenix....E4L3htbA%3d%3d

Nice!!!!!! Im glad its working out well for him.

Thats only $125 per year per pilot. Your 5%, or 7%, or whatever it is today contribution will be able to support a lot more management raises than this.

Wow. I didn't think SM would do something like that. Well, just another CEO looking out for themselves. The respect I had for him...GONE! You can take your 5% and shove it up your pie hole!

.....lovely.

I only hope everyone sees this so they can stop saying they might take a pay cut if.....

On the verge of bankruptcy, claiming we all need to give up 5% permantly to get this company profitable again and then this happens?!?!?! What a freaking joke... All the positives I heard about SM just went out the window.... BTW where's the quarterly reports? Do the reports warrant a raise?

Utterly deplorable. Even if pay cuts are necessary at a company, the CEO is supposed to LEAD BY EXAMPLE. Not give himself a pay raise.

CEO pay is determined by the Board of Directors, which Menke is a member of. But I'm sure he had no objections. He'll blame the board for his raise.

Pinnacle's board is corrupt. This is the reason several share holders are seeking spots on the board. There is a battle going on right now, look at the SEC filings.

Company Search

search PNCL.

Maybe its going down like this...

His pay is going to be cut. Either by the board, in bankruptcy, or as a show of good faith to get employee pay cuts. So before that cut happens, why not raise it?

Start at $425k/yr. Raise pay to $675k/yr. In the future, take a pay "cut" to $500k/yr. Then he can go around saying "Even I'm doing it! I just took an almost $200k/yr paycut, now its your turn!"... while still making more money than he started off with.

Exactly my thoughts, sneaky sneaky

Are you effing kidding me?!!. The old negotiations on the Qs and Pinnacle 900s had damn well better be bearing fruit!!

What possible explanation could he give that would justify taking this raise at a time of financial difficulty? Don Carty would be proud

Looks like he gave up long term incentives. Not sure thats a good sign.

That's only a 59% raise. Lots of airline pilots get a 59% raise when they get off year one pay. For example, from $21/hr to $33/hr. So it's like that.

;)

wow...is it April 1st already? Is this a joke?

Apparently they are taking on more work since the CFO left..
http://www.commercialappeal.com/news...D=happeningnow

And I still haven't been paid from last week. Not a single penny. Maybe Menke would enjoy the shell game I am getting from the payroll department.....screw this place it's a joke.

Well the cost of living is going up. And gas is now $4/gallon. How do u expect management to survive?

My favorite quote after the article:

“The challenges facing Pinnacle today are more complex than when Mr. Menke joined the company a year ago,” a Pinnacle statement said.

In other words, we are worse off today than we were when Mr. Menke took over, so he needs a raise.

Cant see it, post please

Horrifying.

Menke is smarter than this. I think something has changed. Hopefully a long-term Q400 deal?

Ok bk is on the way and it is a cash grab.

So he went from 250k to 675k. A raise of 425k. Spanjers raise was 125k. So these two guys took home a combined raise of 550k. Why would these two guys get a bigger raise than the entire salary of the man who's duties they are now doing? This is a sad case of the golden rule: Those with the gold make the rules.

Pinnacle Airlines Corp. has approved hefty raises for its CEO and his right-hand man in the midst of a struggle to stave off bankruptcy.

Pinnacle’s board raised CEO Sean Menke’s base salary $250,000 a year, to $675,000, and it gave chief operating officer and executive vice president John Spanjers a $125,000 bump, to $400,000.

The announcement came in a regulatory filing after markets closed today with Pinnacle at $1.32 a share, up 2 cents.

A company statement said the top two executives will shoulder heavier workloads after the March 30 departure of chief financial officer Ted Christie. It said a comprehensive restructuring has increased both men’s duties beyond the scope of previous employment contracts.

Pinnacle, which operates feeder flights for Delta, United and US Airways, launched an effort last December to shed costs, boost revenues and keep its planes flying without going into Chapter 11 bankruptcy reorganization. The company has about 650 employees in its Downtown Memphis headquarters and about 8,000 companywide.

The company previously asked its unions to take 5 percent pay cuts and said non-union employees would also have their pay cut.

Menke, who helped guide Frontier Airlines through bankruptcy, was hired last June to succeed former president and CEO Phil Trenary.

“The challenges facing Pinnacle today are more complex than when Mr. Menke joined the company a year ago,” a Pinnacle statement said.

“Pinnacle’s multifaceted restructuring activities along with the pending departure of the company’s CFO have significantly increased Mr. Menke’s responsibilities. “

Christie is becoming CFO of Spirit Airlines, an up and coming discount carrier.

“In light of the increased responsibilities, our board of directors elected to increase his compensation package,” the statement continued.

“As Mr. Menke’s responsibilities for Pinnacle’s restructuring activities increase with the departure of the company CFO, Mr. Spanjers is being asked to assume additional responsibilities related to leading the ongoing operations of the airline. The board adjusted Mr. Spanjers compensation accordingly.”

Spanjers, formerly president and chief operating officer at Pinnacle’s Mesaba Aviation unit, was named vice president and COO of the parent company last October.

The amended employment agreement says Menke’s base salary for bonus calculation purposes would remain at $425,000 a year, and that he won’t be entitled to long-term incentive plan cash awards based on 2012 results.

Pinnacle spokesman Eric Epperson said the action recognized it will take time to replace Christie.

“We’re still in the thick of this restructuring,” Epperson said.

© 2012 Memphis Commercial Appeal. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

They bumped it 250k. He was at 425k.

It is all a sham, this is BS, and they want employee concessions. HA!

Disgusting. Take as much copper wire out of the house before it burns down. What a hero.

They have obviously given up on concessions, they took all they could from all the employee groups they could (froze mechanic's pay) and the plans they have are already set in motion. This company is a joke, I hope Delta pulls out every last 200/900 within days of the BK announcement.

A company statement said the top two executives will shoulder heavier workloads after the March 30 departure of chief financial officer Ted Christie.
Now they will have to interview outside consultants to guide the company through restructing.

This means one of two things. Menke has given up on voluntary concessions and has decided to make as much money as possible before filing BK when the company will be under court supervision and will use BK to impose reductions on employees.

OR

He has been able to negotiate changes to our agreements that will allow the company to make money and employee concessions are not needed to go forward.

I'm hoping its the latter, but my gut tells me its the former. If that is the case, I will be dissappointed to see Menke decide to force concessions from employees while taking pay increases. It will do nothing but create ill will among the employees, which is not good for a customer service business.

If it was the latter, the press release would be about his huge success and his raise would only be mentioned as a footnote.

As his raise is subject of the whole article, I fear the former is true.

Do you work here boomer?

(sound of telephone ringing)


"Pinnacle Crew Scheduling, How can I help you?"


"Hi Mr. Crew Scheduler........I'm calling in sick for my trip tomorrow. After reading that press release about raising managements pay I felt physically ill and began throwing up. Goodnight"

I was just thinking the same thing.... Sickout anyone?

Heres how I know you don't work for Pinnacle.

Agreed. And if it is true I fear things will get very ugly after this if the company tries to force paycuts in bankruptcy. Needless to say I'll be pretty dissappointed in Menke if this is the route he choosed to take. If true, it's safe to say his reputation as a pro employee CEO will be lost.

And the F9 guys liked what about him again?

I want my payroll fixed NOW. They are stealing from me. Union hasn't resolved my issue after a few weeks. They could just read the comments in crew trac if Janice would answer her phone for a change.

Wow, I don't even know what to say. Can't wait for him to explain this one.

Ha ha ha - I dont, but I feel disgusted just the same. I hope you keep up a good fight!

He knows the stock options will soon be worth zero, the only way to get paid will be salary. He still wants to get paid like any manager. $425k is not much for a CEO, a lot of FedEx captains make that much and work much less.